In 2022, virtual data room solutions are expected to shake up the legal sector

Virtual data rooms used to be used for business transactions like mergers and acquisitions. However, as it has evolved, this tool has been applied to many other industries as its unique features can satisfy many other organizations, such as finance and real estate, government, medical and educational institutions, and the legal sector. In this article, we’ll take a closer look at what benefits legal organizations get from using data rooms.

What is a virtual data room for lawyers?

 While in general the set of features and tools in virtual data rooms are the same, they do differ as they go, giving different industries the benefits they need. VDRs or “virtual data room cos’è” (from Italian) for lawyers also have their specifics, as law firms have their requirements. The main requirement for the legal industry is to provide robust digital security, as well as the ability to quickly share sensitive data and provide a more organized operation. 

Previously, all legal data, as well as business data, was stored in physical data rooms, now almost all organizations have moved to digital activities, in which VDR has helped them a lot, but there are still firms that stick to the traditional document storage. 

Key Benefits of VDRs for Lawyers 

Below we outline the main strengths of using a lawyer’s virtual data room, which is superior to physical storage in many ways. 

  • No need to rent an entire room 

The fact that VDR is an online space that can be accessed at any time and from any device is one of its major pluses. This provides you with flexibility, and cost savings. You no longer need to rent an entire room to store your data, it is always at your fingertips. 

  • High level of the overall security 

The Virtual Lawyer Data Rooms have the appropriate security certificates which guarantee that international standards of security and disclosure are followed. SO / IEC 27001 and (SOC) 1-2 are certifications that let you know that a particular VDR provider is suitable for legal activities.

  • Document control and protection 

All documents that are placed in the space are automatically encrypted. Data room administrators can set permissions to access and interact with documents, such as prohibiting copying, editing, viewing, uploading, forwarding, or screenshotting a document. VDRs also have remote deletion features, watermarks, and the ability to track user activity within the program. All of these precautions greatly reduce the risks of data leakage or corruption. 

  • Easy to use and simple to organize

VDR vendors try to make their products oriented towards the average user. That is, by simplifying the interface as much as possible so that you and your employees do not spend too much time learning how to use the system. Organizing documents is also very easy, you can do it with automation features such as bulk document uploads or drag-and-drop functionality, as well as automatic naming. Finding a document in the digital space is much faster because you can use the smart search feature. 

  • Improved communication

Law firms can now simplify their data collection process. Live discussions and even online board meetings can be held in the space. All correspondence and video calls also remain completely confidential.

In what processes can VDRs be useful? 

VDR can support your firm during many processes, namely: 

  • Extranet – exchanging data and messages with clients is much safer and easier
  • Trial – invite third-party users into the space to facilitate litigation
  • Legal review – verification is much faster thanks to VDRs
  • Corporate protocols – keep minute books inside the space
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