Every day, there are hundreds of letters, case briefs, agreements, contracts, and other legal documents that pass through the portals of a law firm. These documents are highly sensitive. More law firms have adopted a digital way of filing and sharing information within their internal systems.
Unfortunately, some law firms experience security breaches. They are even targeted by hackers who wanted to acquire data for stock trading purposes. Cybercriminals are now zeroing on legal documents for their illegal business activities.
Virtual Data Rooms are being used by more and more law firms to protect and organize the deluge of information that they receive. It has become an essential part of legal practice management. Lawyers are adjusting to being technologically ahead of the game.
What is a Virtual Data Room?
A virtual data room or VDR is a software that serves as an online repository of information. These documents can be organized, shared, and monitored within the administration’s discretion. A VDR is an ideal support system for complex processes and projects, such as those in legal practice. Likewise, a VDR is a very safe and secure portal that protects the privacy of sensitive information.
How Can a Law Firm Benefit from a Virtual Data Room?
- Virtual Data Rooms eliminate the need to rent and maintain a physical data room. Lawyers do not need to travel to other places to review documents in person. Travel and lodging cost significantly decrease, which in turn translates to savings for the firm. Less travel time also means an increase in productivity. It allows the lawyers more time to tend to other clients. And in the world of legal practice, time equals profit.
- VDRs provide a high level of security. In litigation, even the smallest piece of insider information may be used against a client. By storing highly confidential data in the VDR and limiting its access to key people, the legal team gets assured that they have a fair battle ahead of them.
- Lawyers can file documents electronically through Virtual Data Rooms. Gone are the days when lawyers need to dig through tons of files looking for specific materials. VDRs also ensure that all documents get protected from natural and human-made disasters such as a flood or fire. It is made possible because of the use of cloud storage.
Bear in mind that a missing piece of evidence or supporting documents might cause the failure of a case.
- Transactions can be tracked easily in a virtual data room. In cases where a legal team is involved, members can collaborate no matter where they are in the world. Miscommunication and lapses can be avoided because the system shows who has viewed specific documents.
Notifications will be sent to the people involved so lawyers can respond to questions and express their opinions within the portal immediately.
- A virtual data room prevents unauthorized distribution of legal documents. It gives VDR administrators the power to control who has access to every room. They can decide who can view, copy, and print documents. Only those who have given access can use data from the VDR for legal proceedings.
The legal profession involves a web of documents that need to become cohesively organized. They rely on these documents to build their cases. A virtual data room is a crucial part of the legal management and will help bring stability and credibility to the legal practice.