When crucial decisions are being taken, such as a merger acquisition, tender or capital raising there is usually the need for outside parties to examine the company’s documents. This can mean the thorough examination of tens or thousands of confidential documents. Businesses must use a virtual room to allow this without risking data breaches or causing compliance violations.
Often known as VDR, VDRs that are secure make it easy for users to access and review sensitive information safely online. A VDR provides top-of-the-line security and encryption to ensure business deals are kept secure.
A secure data room allows for efficient collaboration, allowing several stakeholders to collaborate on projects simultaneously. It also streamlines processes like Q&A and document versioning, making due diligence a much faster and more efficient process.
However, the majority of’secure’ data rooms use an outdated model of login and passwords to secure documents. Any system that does not stop authorized users from sharing login credentials, as well as your documents, is not suitable for the purpose. These systems often make bold assertions about their security using terms like’most secure data rooms’, ‘highest levels of security’ etc. This is considered to be marketing language.
A true secure dataroom uses an ISO 27001-certified system that offers access to users with granular permissions as well as dynamic great site watermarking and two-factor authentication along with other features to prevent document breaches in the real time. Additionally, it ensures that all user activity is tracked and recorded for auditing purposes. This is the only way to ensure that documents are secure when shared with an outside party.