The security of confidential information during business processes and financial transactions is paramount. Virtual data rooms permit users to save and share documents in a controlled setting. Typically, they are used for due diligence purposes during M&A deals however, they can be used for other reasons too.
The top VDRs provide a variety of features to ensure documents are safely stored and shared throughout a deal or process. For instance, they could include two-factor authentication, which requires not only a password but also additional factual information or codes that are unique to each user. This reduces the risk of data breaches caused by compromised passwords. Many VDRs offer granular permissions to restrict access to certain files. IP restriction is another feature that restricts access to virtual data rooms to certain IP addresses. This stops sensitive data from being downloaded onto unauthorised devices, and can help stop leaks.
Certain VDRs also provide watermarking which is an unremovable identification that is displayed on every document. They also have audit logs which document all actions that have been made on the files within the data room. These can be used to find out who has accessed or modified files, and they can also help in the investigation of data breaches. Other useful features include secure spreadsheet viewing, which makes sure that content in Excel files can only be viewed by a specified users.
Check the certifications and standards of the data room to ensure that it is providing the appropriate security level for your documents. The ideal situation is PCI DSS Level 1 ISO 9001 / ISO 27001 FIPS 140-2 MTCS Level 3 Some investment banks maintain an approved list of vendors that offer data rooms with whom they are pleased working. You should choose an organization that can demonstrate these qualifications and has a positive reputation in the industry.
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