Today, information technology is one of the most important components to ensure efficient operation. This article will discuss the role of the data room in the banking sector.
How to keep our data safe?
The modern development of the world economy is accompanied by the widespread use of information systems, a special place among which are beginning to occupy cloud technologies. They are gradually becoming one of the most important factors influencing the competitiveness of companies in various industries and spheres of activity.
In a general sense, cloud technologies are software available to a user via a local area network or the Internet for the purpose of remote access to certain resources, including, in particular, computing power, data warehouses, and software.
Any automated information system that facilitates doing business requires the creation of a Data Room. Moreover, it should contain information about the subject area, which is a dynamically updated model of the outside world.
The place of Digital Data Room in the banking system
As investment banking becomes more and more popular online, the number of successfully completed deals is increasing at a rapid pace. Investors today don’t have to take time-consuming trips to view the contents of your project. Thanks to the Virtual Data Room, the files that characterize the performance of a company are now made available to potential investors online.
Investment banking involves a large number of technical operations and services such as underwriting, merger & acquisition support, financing provision, and many others.
For banking institutions it is necessary to note the following features when choosing the best data rooms:
- High productivity, its ability to quickly process information, track changes at the facility, in the environment, and take them into account as much as possible.
- The objects and processes they manage, as well as the management system itself, can be complex and geographically distributed.
- For financial institutions, and for banks, in particular, the object of management – the controlled part, or their main “production” – is also associated with the production and processing of information.
- In the first case, the bank is considered as one object, as a whole, where there is virtually no problem of transmission and reception of primary data.
When an organization chooses Data Room providers, internal auditors can be reassured – the provider will be fully responsible for the security of the cloud environment itself, and the company – for the security of the information contained in it. However, not everything is so simple here. The concentration of all cloud services in one provider carries additional risks: if the provider fails – the work of the whole company will be paralyzed. Therefore, it is recommended not to rely on one cloud service provider, but to use the services of several different providers.
What service to choose?
Therefore, if an organization operates in a cloud environment, internal auditors need to focus heavily on verifying the appropriate providers. At the same time, it doesn’t matter if it’s a huge corporation or a small company offering online education. If critical data is stored in a cloud environment, the organization must pay sufficient attention to assessing the relevant risks. The security audit of cloud services must be included in the audit plan, and all critical results must be presented to the audit committee. Among the best alternatives are: