Secure storage of confidential data is crucial during business processes and transactions. Virtual data rooms are typically used to share and store confidential documents in a secure setting with controlled access for users. Typically, they are used to conduct due diligence in dataroomanalytics.net/advantages-and-disadvantages-of-buying-an-existing-business/ M&A deals however, they may be used for other reasons too.
The top VDRs have a variety of features that ensure documents are secure and shared during a deal or a process. For instance, they can include two-factor authentication which requires not just an account password, but also actual information or codes that are unique to every user. This reduces the risk of data breaches caused by compromised passwords. Many VDRs also provide granular permissions which can limit access to specific files. IP restriction is another feature that limits access to virtual data rooms to certain IP addresses. This stops sensitive data from being downloaded onto unauthorized devices, and helps to avoid leaks.
Other features available on certain VDRs include watermarking, which shows an unchangeable identifier on every document, as well as audit logs that track the actions of documents within the data room. These logs are useful in determining who has accessed and modified what files and can aid in the investigation of data breaches. Secure spreadsheet viewing is a useful feature. It ensures that Excel files are only accessible by specific users.
When choosing a data room make sure you check its certifications and standards in order to confirm that it provides the appropriate level of security for your documents. It should be PCI DSS Level 1, ISO 9001 / ISO 27001 FIPS 140-2, MTCS Level 3. Some investment banks have an approved vendor list that lists data rooms that they are willing to work with. Look for a service that has these credentials along with a good reputation in the business.
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