External parties are usually required to review documents when crucial decisions like merger or acquisition or tender, as well as capital raising is being considered. This can require a thorough review of tens or thousands confidential documents. Businesses need to use a virtual room for this without putting themselves at risk of data breaches or causing compliance violations.
Often referred to as VDR, an encrypted data room makes it simple for users to access and view sensitive data securely online. With top security features and iron-clad encryption, an VDR is the ideal choice for business deals that need to be protected.
A secure data room allows for efficient collaboration, allowing many stakeholders to collaborate on projects at the same time. It also simplifies processes such as Q&A and document revision, making due diligence a faster and simpler process.
However, the majority of secure data rooms are based on an outdated model of passwords and logins to secure documents. Any system that doesn’t prevent authorized users from sharing login credentials, and therefore your documents, is not appropriate for the task. Most of the times these systems make huge claims about how secure they are by using terms like’most secure data room and ‘highest level of security’, etc. – which is just advertising.
A true secure data room uses an ISO 27001 certified system that gives what is a secure data room access to users with granular permissions, dynamic watermarking, two-factor authentication, and more to ensure that breaches are prevented in real-time. In addition, it makes sure that all user activity is logged and recorded for auditing purposes. This is the only way to ensure that documents are secure when shared with any third party.
