External parties are usually required to look over documents when crucial decisions such as merger or acquisition, tender, or capital raising are being made. This can mean an exhaustive review of tens or thousands confidential documents. Businesses need to use a virtual room to allow this without risking data breaches and creating compliance violations.
Secure data rooms are often called VDRs. They permit users to securely access and read sensitive information online. A VDR offers top-of-the-line security and encryption to ensure transactions are secure.
A secure dataroom facilitates efficient collaboration because it lets multiple participants to collaborate on projects at simultaneously. It also makes it easier to manage processes such as Q&A and document versions, making due diligence a quicker and simpler process.
To protect documents, most’secure data rooms’ rely on the old-fashioned login and password model. Any system that doesn’t prevent authorized users from sharing their login credentials, and consequently your documents, is not fit for purpose. Most of the times these systems make big claims about how secure they are using terms such as’most secure data room and ‘highest level of security’, etc – which is just marketing guff.
A true secure dataroom uses an ISO 27001-certified security system that gives access to users with granular permissions as well as dynamic watermarking and two-factor authentication as well as other features to protect against document breaches in the real time. It also ensures that all user activity is recorded and tracked to allow auditing. This is the only way to ensure your documents are safe when shared with third parties.
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