Before technology took over our lives, most well-established law firms used Physical Data Rooms. These were highly secure areas where certain employees could enter to access sensitive information. However, even with the door locked with highly secure equipment, those who were involved in the law firm often had lingering feelings that something might go wrong. If this private data fell into the wrong hands, it could prove detrimental to the firm.
In recent years, businesses all over the world have turned to advanced technology to store their important files and folders. There are plenty of Virtual Data Room providers that provide a service that allows certain people access to certain data. Employees can enter these VDRs through their computer or a smart device anywhere, anytime. They can easily share, store and review data with a VDR. A Data room for lawyers has helped increase productivity and save time and money.
Why Law Firms Use Virtual Data Room?
VDRs Help Employees Work From Remote Locations
Since the outbreak of Covid-19, more people are working remotely than ever before. There have even been plenty of court meetings held on virtual platforms, so people don’t physically have to go to the courthouse. Without modern technology, it would be difficult to imagine how law firms would have run their businesses during these unprecedented times.
VDR providers allow users to access the storage room from the comfort of their own homes. Not only can you access sensitive files and folders stored in these VDRs, but you can also collaborate and share the data too. However, not all law firms want to share all the data with each of their employees. Every VDR provider will allow the owner or manager of the company to set different permission levels. They can easily add different layers of protocols to increase security. For example, some employees won’t be given access to certain files.
Even with the vaccine rollout, it seems that a lot of people still work from home. It is predicted that a lot of employees will work remotely, even when the pandemic is over, so it is expected that more companies will be using VDRs more than ever before.
In law firms, a lot of the data saved in a Virtual Data Room is highly confidential, and if a cybercriminal was to gain access it would be a complete nightmare for the law firm. Sometimes, employees are required to share this information with clients, other law firms, other employees, and other external parties. This is why it is vital that law firms use a quality VDR provider. Making sure that their employees can safely share sensitive data with others is vital. Sharing this data knowing that cybercriminals are unable to steal the files is key, and it is one of the reasons why so many law firms are using Virtual Data Rooms nowadays. Very few modern businesses would be able to function without Virtual Data Rooms.
Often law firms have to hold onto data for decades. The problem that many of these firms face is that over time some of these files and folders get physically damaged. Lots of issues can arise when storing paper. The paper will age over time, some papers tend to turn color, the ink gradually fades, the list goes on.
This is another benefit when using a Virtual Data Room instead of a Physical Data Room. You are guaranteed that the data stored in a VDR is intact. So if an employee needs to go back to research files on a case three decades ago, they should have a perfect copy on their screen in a short space of time.
Law firms, in particular, must be well aware of the dangers of cybercrime. There have been firms all around the world that have had issues with cybercrime, and it is not surprising when these hackers hold law firms to ransom, sometimes demanding huge sums of money in return for the stolen information. Often, when the ransom is agreed upon, hackers refuse to return the data and ask for more money. This can have a devastating effect on the law firm and the firm’s clients.
VDR Can Help The Law Firm Save Time
A lot of people involved in the legal industry have tons of paperwork to go through day in, day out. Even when dealing with small clients, there is often a huge pile of paperwork to deal with, so storing this data properly and making sure everything is secure is very important. In the past, a lot of this paperwork was physical, but in recent years most of that has changed.
Time isn’t always on the employees’ side in the legal industry, so being able to access files and folders twenty-four hours a day from wherever the employee is located can prove to be vital. Lawyers and most of those involved with law firms work incredible hours. It is not strange to see a lawyer working from all hours of the day, even on a Sunday, so making sure they can access these files whenever they want is essential. They don’t always have time to go to the office to look at files. A VDR can help lawyers make quick decisions and come up with solutions fast.
How Different Types Of Law Firms Use Virtual Data Rooms?
When looking for a VDR provider, try and find one that suits your law firm. Different law practices will want different features so they can benefit from the service. Let’s take a quick look at how a VDR can impact certain practices:
- Corporate Law: When it comes to acquisitions and mergers, there are often mountains of paperwork to go through. Lawyers and employees in law firms have found that VDRs have made their lives a lot easier when going through this process. As work progresses, employees can ask lawyers and others to join the VDR to review the ongoing work. This often helps the work get finalized before the deals are complete.
- Real estate: VDRs can help manage the selling and leasing of properties. They are also good for keeping sensitive files about asset-backed mortgages.
- Intellectual Property attorneys often use VDRs. They are known to share highly confidential files, exchange information, and store licensing agreements. It is vital that they use a secure area to store this intellectual property.
Law firms should take their time before investing in a VDR. There are plenty of reputable services out there that allow potential customers to try their Virtual Date Room before purchasing the full version. These trials give people a taste of what the service is actually like.
Before the pandemic, there were still a lot of people inside the law industry who did not have access to a VDR. However, since the deadly virus spread all over the globe, more people have been forced to work from home than ever before. Lawyers and those working in law firms have found great success because of VDRs. To increase security, most firms invest in highly secure VPN services too. This masks the employees original IP, replacing it with a new one making it harder for hackers to gain access to their device and to the VDR. Running a quality VPN and investing in a highly secure VDR reduces the risk of a cyberattack.