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. They are generally used to perform due diligence in M&A transactions, but can also be used for other purposes.
The best VDRs provide a variety of features to ensure that documents are safely stored and shared during a deal or process. For example, they can include https://dataroomanalytics.net/ two-factor authentication that requires not just a password but also additional facts or codes that are unique to every user. This reduces the risk of data breaches that are caused by compromised passwords. Many VDRs provide granular permissions to restrict access to particular files. Another option is IP restriction, which limits access to the virtual data rooms to a specific IP addresses. This protects sensitive data from being downloaded onto unauthorized devices and prevents leaks.
Other features offered on certain VDRs include watermarking, which is an irremovable identifier on each document, and audit logs, which record all actions on the data room’s files. They can be used to identify who has been able to access or modify files, and they can also help in the investigation of data breach. Secure spreadsheet viewing is a useful feature. It ensures that Excel files can only viewed by specific users.
When choosing a data storage facility be sure to verify its certifications and standards to verify that it provides the appropriate level of security for your documents. The ideal scenario is PCI DSS Level 1, ISO 9001 / ISO 27001 FIPS 140-2, MTCS Level 3. Some investment banks maintain a list of approved vendors that offer data rooms with whom they are comfortable working. Find a company that has these credentials along with a good reputation in the business.