Like many other industries, pharmaceutical companies are undergoing a rapid digital transformation. More data is collected and processed in their networks, making these organizations more visible targets for cyberattacks. This article will explain how to organize pharmaceutical due diligence securely with the help of data room software.
Protecting sensitive information: a guide for business
Cybersecurity and risk mitigation have quickly become top priorities for companies seeking digital transformation. These companies collect large amounts of data and usually have access to sensitive information, including medical data, drug patents, and data related to pharmaceutical technologies. It means that “gaps” in the network of organizations can have serious consequences, such as theft of intellectual property and clinical trial data, damage to reputation, loss of income, and even litigation. Like other business participants, “pharma” needs to master various aspects of cybersecurity.
Today, pharmaceutical businesses are just as vulnerable to ransomware attacks and data leaks when organizing business transactions as other businesses. Moreover, the pharmaceutical industry needs effective cybersecurity management programs as it embraces the use of resources such as third-party providers, automation tools, and outsourcing which undoubtedly increase operational efficiency. Therefore, modern companies implement virtual data rooms to protect their data and create a secure collaborative environment for their customers. For example, almost all pharmaceutical companies are involved in various complex business transactions. One of the effective ways to avoid difficulties in interaction with counterparties is due diligence – a comprehensive audit of a company or individual. The procedure allows investors or partners to:
- collect reliable information about a business partner or supplier, find out his actual financial condition,
- informal control over him by other individuals,
- possible participation in dubious transactions,
- money laundering or involvement in business structures that may be under legal sanctions.
In this case, introducing data room software is an essential stage of the pharmaceutical due diligence checklist. The provided data room serves as a source of information.
How can companies protect their data with the data room software?
The data room represents the internal source with information that is not publicly accessible. In this regard, the buyer depends on cooperation with the potential contractual partner. External sources, which have an auxiliary function, must be distinguished from this internal source of information. With their help, the one-sidedness of the information reference is countered, and it is partly possible to verify interior details. In particular, data from the seller about his company history, foundation, and representation rights can be easily verified using objective external sources.
Logical folder structures facilitate navigation within the data room. Predefined rights and role concepts help to define rules for internal and external data exchange. Once you have prepared everything, you can invite members to the data room and assign them vital roles and rights. The following data room features are relevant for secure and productive data exchange:
- watermark for PDF files
- digital meeting folders
- limited read access
- chat and voting functions.
Attendance lists track access to the data room. Time restrictions are possible by standardizing opening hours for physical data rooms. Copies and photographs are often prohibited.
Customer data privacy in a data room
Today, customers are less willing to share their sensitive data with organizations while still expecting each organization to disclose the details of the personal data it collects. In other words, clients demand more privacy and transparency from you. Those businesses that efficiently manage these demands reap considerable dividends in the form of competitiveness-enhancing trust. In this case, data room software also plays an important role. This platform helps to organize primary business operations more securely and transparently.