External parties are typically required to look over documents when crucial decisions like an acquisition or merger or tender, as well as capital raising are being made. This may require an in-depth review of thousands or tens of thousands of confidential documents. To allow this to happen without risking the possibility of data breaches and resulting in violations of compliance, companies have to utilize a virtual information room.
Secure data rooms are often called VDRs. They permit users to securely access and read sensitive information online. A VDR provides top-of-the-line security and encryption to ensure transactions are secure.
Secure datarooms allow for efficient collaboration, allowing many participants to work on projects at same time. It also streamlines processes such as Q&A and document versions, making due diligence a quicker and easier process.
To safeguard documents, the majority of secure data rooms’ rely on the old-fashioned login and password model. Any system that doesn’t stop authorized users from sharing login credentials, and thus your documents, isn’t suitable for the purpose. These systems frequently make bold claims about their security using terms such as’most secure information rooms”, ‘highest level of security’ etc. This is considered to be marketing language.
A true secure data space utilizes an ISO 27001 certified system that allows for granular access permissions, dynamic watermarking, two-factor authentication and more to protect against breaches of documents in real-time. In addition, it guarantees all user activity is tracked and recorded for great site auditing purposes. This is the only method to ensure that documents are secure when shared with the third party.
