Today’s business has to manage an ever-increasing amount of data coming from multiple sources. This data should be stored in a secure and secure location that allows for easy backups of data for safe storage and quick recovery in the event of unforeseen circumstances, an unexpected failure, or a cyber attack. Understand the concept of the due diligence data room in the article below.
How to store information safely – recommendations for due diligence
In business, there is such a concept as primary documentation. For most, the first association with primary documentation is an endless number of discordant deeds and accounts, papers and lost documents. Every accountant, at least once, never received an invoice sent by mail. Time does not stand still, and one of the latest trends in business has become the use of electronic document management. The introduction of a data room for due diligence allows you to abandon the paper archive of documents and systematize data on a computer.
Among the main due diligence activities are the following:
– identification and verification of the client (his representative);
– establishing the ultimate beneficial owner of the client or its absence, including obtaining the ownership structure for the purpose of understanding it, and data that make it possible to establish the ultimate beneficial owner, and taking measures to verify his identity (if available);
– establishing (understanding) the purpose and nature of future business relations or carrying out a financial transaction.
The data room is a solution for digitizing paper documents, controlling their movement and physical storage while performing due diligence. Archiving electronic documents and automation of the archivist’s workplace becomes the basis for productive work. It provides centralized access to the most important applications, information and services, taking into account the responsibilities and authorities of users.
The virtual data rooms for due diligence are easily scaled according to the needs of the company, unlike a server, where the monthly fee includes the rental or purchase of all “iron”, regardless of whether the client uses it at full capacity or not. In the case of the VDR, you use the necessary volume and accordingly pay only for it. In addition, you can increase the amount of cloud storage at any time.
What will you receive with the data room for due diligence implementation?
The implementation of the due diligence data room will bring maximum benefits, provide a quick win, and at the same time, open up opportunities for continuous improvement. After you define the boundaries and capabilities of your enterprise portal, break the entire portal creation process into easy-to-manage steps. When prioritizing these steps, be sure to take into account the views of end users.
The virtual data room for due diligence can also be used:
• to promptly resolve issues that require joint group work;
• to eliminate conflicts between departments by developing a unified strategy and tactics in the implementation of the tasks;
• to collect information, ideas, expert opinions on the issues under discussion;
• to increase the motivation and interest of subordinates in the implementation of the tasks set by involving them in the decision-making process”.
Besides, the period of storage of documents in the data room is unlimited. After renewing the tariff, the client can add new documents to the archive, exchange them with counterparties, configure archive search and use all other service functions.