A secure virtual data room is a secure online repository that allows for the storage and sharing sensitive documents within a controlled environment. These special solutions can be essential in assisting with complex projects and processes that require sharing of sensitive information with people that aren’t within the organization’s firewall. This includes the M&A and litigation processes, as well as due diligence of PE/VC investments and fundraising.
Data rooms differ from the standard file-sharing services such as Google Drive or Dropbox because they focus on security both at the level of the document and at the system. They rely on advanced encryption, both while during transport and at rest, as well as multi-level authentication procedures. They also offer features such watermarking, disabled print and blind view in order to protect against accidental disclosures.
Some VDR providers make bold claims about how secure their systems are by using terms like ‘most secure virtual data room and a highly secure data room’. Any system that allows users to share login information or documents with unauthorised users is not secure. Even two-factor authentication is not enough to stop this because a user could easily forward the second URL to anyone else.
You should seek out a VDR that is certified with ISO 27001 certification – it is the gold standard of information security management systems. You should also look for systems that provide detailed activity tracking as well as the ability to grant granular access rights so that you can see which documents are used by whom. This is crucially important for M&A or fundraising processes because it will provide you with insight into the level of interest that your shared files are generating among bidders.
https://securevdronline.com/7-tips-to-keep-your-virtual-data-room-secure
