In most businesses today online file sharing, storing, and collaboration tools have become an integral part of day-to-day operations. For example, a collaboration tool like Dropbox provides a functional solution that can be used for free or for what seems to be at a very low cost to people and businesses looking to go paperless. However, while the monthly cost of implementing a collaboration tool like Dropbox may be low, the expense associated with the repercussions of a breach, should one occur, could be extreme. Which begs the question- is the cost of file sharing solution like Dropbox really less expensive when compared to an online virtual data room solution like SecureDocs, a solution that is specifically designed with document security in mind, and can most likely prevent the breach from occurring altogether? Probably not.
Here are five examples of when your business should not use a collaboration tool for online document sharing and storage:
1. Raising Funds
From very early on your business has proprietary information that you will want to protect. When raising funds, you will be required to share that information with many different potential investors. But, in the end, only a fraction of the originally interested parties will end up giving their support to your business. You will want to ensure that the individuals who did not choose to invest in your business no longer have access to the information that was giving during the fundraising process.
SecureDocs Tip: With a free collaboration tool you can’t necessarily do that. Once you’ve sent off the information you lose control over what the recipient does with it. With a virtual data room you can restrict access so that once your fundraising round over only the correct investors remain in the loop.
2. Intellectual Property Management
Your intellectual property in most likely the life-line of your business. So, whether you are storing the data or licensing it to an outside party, you want to remain in control of it. If allowed in the wrong hands it could potentially bring an end to your business, or at the very least result in costly litigation.
SecureDocs Tip: Protect your IP with a virtual data room that provides a customizable NDA, requiring anyone who views your information to agree to the terms of your choosing before gaining access.
3. Human Resources File Management
Your company’s human resources files undoubtedly contain all of your employee’s personal information. Everything from salaries and bank information to social security information and home addresses, and more. Pretty much anything and everything that a hacker could want access in order to exploit their personal resources.
"As soon as you have an employee you need something like SecureDocs."
Steve Francis, Founder of LogicMonitor
SecureDocs Tip: Virtual Data Rooms are specifically designed with security to prevent data breaches. Features like two-factor authentication, end to end encryption, and watermarks protect against internal and external attacks.
4. Storage of Key Financial Documents
You most certainly wouldn’t want your CFO’s filing cabinet accessible to just anyone. The information stored there contains some of the most confidential and valuable information that your company has, and is an obvious target for hackers.
SecureDocs Tip: Collaboration tools, by design, allow for information to be easily transferred from one person to another, without control over what happens to after the transfer occurs. Virtual Data Rooms provide strict access control, allowing administrators to restrict types of access to certain documents.
5. Preparing and Executing Audits
Whether it’s an internal systems audit, a 401k audit, worker's comp audit, or an audit of another kind, both internal and external audits should be handled with care. Audits expose your company’s processes, structures, and financial information. Information, which if in the wrong hands, could potentially be used against the business and all of the individuals associated with it. Controllers should take extreme caution when giving access to this information, restricting access when needed, and monitoring what is happening with all documents at all times.
SecureDocs Tip: Audits need audit logs. Virtual Data Rooms give administrators insight into who is view the documents, when they have viewed them, and how many times. Collaboration tools don’t.
To wrap things up, Dropbox is a great tool! It’s easy to use, has great functionality, and can be used by pretty much anyone, anywhere, and on nearly any device. They’ve simplified the process of online collaboration and document sharing, resulting in nearly everyone you probably know having used the solution or at the very least, heard of it. So, when you need to share images, or documents that contain publicly available information that you're working on with a colleague- Dropbox is great. But, when it comes to your most critical business documents, confidential human resources files, and any other private information a secure virtual data room is a wiser choice.
Virtual Data Rooms don’t have to be expensive, clunky, or hard to use. SecureDocs has built a virtual data room that is not only simple to get up and running but also easy-to-use and secure. Try SecureDocs for free, and see for yourself how it can benefit your business.