Security of confidential information is crucial during business processes and transactions. Virtual data rooms allow users to keep and share private documents in a controlled environment. They are typically employed to perform due diligence in M&A transactions, but can be utilized for different purposes.
The top VDRs have a range of options to ensure that documents are kept securely stored and shared during the course of a deal or process. For instance, they could include two-factor authentication that requires more than a password, but also actual information or codes that are unique to each user. This helps reduce the risk of data breaches as a result of compromised passwords. Many VDRs provide granular permissions to restrict access to particular files. IP restriction is another feature that restricts access to virtual data dataroomanalytics.net/running-a-successful-startup-crowdfunding-campaign-a-guide rooms to certain IP addresses. This prevents sensitive data from being downloaded onto unauthorised devices, and can help stop leaks.
Certain VDRs also have watermarking, that is an immovable identification that is displayed on every document. They also have audit logs that document all actions that have been made on files in the data room. These are useful to identify who has accessed and modified what files, and may aid in the investigation of data breach. Secure spreadsheet viewing is another useful feature. It ensures that Excel files can only viewed by specific users.
Check the certifications and standards of the data room to make sure that it provides the right level of security for your documents. The ideal situation is PCI DSS Level 1 ISO 9001 or ISO 27001 FIPS 140-2 MTCS Level 3. Some investment banks have a list of approved vendors that lists data rooms they are comfortable working with. Look for a service that can prove these credentials and also has a solid reputation within the industry.