External parties are frequently required to look over documents when important decisions like an acquisition or merger, tender, or capital raising is being considered. This could require an in-depth review of tens or thousands of confidential documents. To allow this to occur without risking a data breach and creating an unconformity, companies need to use a virtual data room.
Often referred to as VDR, VDRs that are secure make it easy for users to access and review sensitive information securely online. With top security features and an iron-clad encryption, a VDR is the ideal choice for transactions in business that require to be secured.
A secure data room allows for efficient collaboration, allowing multiple participants to work on projects simultaneously. It helps streamline processes like questions and answers, as well as document versions which makes due diligence simpler.
However, most ‘secure’ data rooms depend on an outdated system of login and passwords to secure documents. Any system that does not prevent authorized users from sharing login credentials, and thus your documents, is not adequate for the job. Most of the times, these systems make big claims regarding their security using terms such as ‘the most secure data room”, “highest level of security’, etc. but this is just marketing guff.
A secure dataroom employs an ISO 27001-certified solution that provides the ability to grant access to users in granular ways to dynamic watermarking, as well as two-factor authentication, among other features, to ensure that documents are not compromised in the real time. In addition, it ensures all user activity is logged and recorded to ensure auditing purposes. This is the only method to ensure that documents are safe when shared with a third party.