Today’s business world and global economy require business companies to constantly improve security for handling sensitive data. This decision is due to the frequent incidents of hacking, data breaches, and other types of cyberattacks to which companies around the world have been subjected since the time the entire world went digital. Now, the top priority for organizations is increased security for all the data under their control. Fortunately, there is a tool that can prevent cybercriminals from attacking, and that is the virtual data room.
Audits and regulatory requirements
If your company is subject to auditing and regulatory requirements that can have many negative consequences if violated, a virtual data room is a must. Typically, regulatory requirements have a checklist of items that your company must consider. So when choosing your data room provider, you should make sure it has the option to import into Excel as part of its functionality. When you import all the items you need, you can divide them into special categories, and assign someone from your staff to be responsible for them.
Once you’ve done all this preparation, you and your colleagues can start uploading the documents needed for each item on this checklist. When the uploading process has been completed, you need to notify your audit team. You send them an invitation, which makes them temporary users of your VDR and allows them to review your downloaded documents, leave notes, comments and questions, without worrying about security issues.
If your company decides to do an audit, you may not always be aware of it. So with data room, you can prepare for everything and meet regulatory requirements as quickly and efficiently as possible, in a comfortable and transparent environment.
Key features of VDRs in auditing and regulatory requirements
Below we’ve highlighted the main features of the virtual data room that are very useful in auditing and regulatory compliance:
- Simplified document sharing
VDR allows you to store and share documents within your program, without the use of third-party untrusted spaces. You no longer need to use email or other cloud servers or USB storage to transmit all information to your auditors, without risking anything. All data is securely encrypted, both at rest and during transmission.
- Document Management
Document organization is an important pre-audit preparation step. VDR helps you save time on management issues and makes your life easier. All documents can be exported using drag-and-drop or bulk upload functions. All of them are automatically formatted in PDF format, and the automatic indexing feature is triggered on every pop and file that just enters the space. This will help you and your invitees navigate within the space more easily in the future, and the smart search feature will allow you to find the document you need in seconds.
- Document Tracking
VDR allows you to keep track of all user actions within the program and the actions they have performed with documents. This seemingly simple feature is extremely useful during a checkup. So, you can eliminate repetitive requests and documentation, as well as the chance of losing a document. Also, the VDR sends out automatic notifications of all the changes that have taken place within the space, this allows you to keep everyone informed. All actions can be performed remotely, from home, on the road, or anywhere else where there is the Internet, there is no need to meet in person.
VDR can prove and show how the whole process took place, as auditors are often required to provide proof that everything was done by the rules.