A secure virtual data room is an online repository where confidential business documents can be shared and reviewed. A VDR allows businesses to conduct M&A deals, acquire contracts, conduct due diligence and raise capital without having to disclose sensitive information to the wrong people.
A top-of-the-line VDR must offer the following security features:
Document encryption is available during transport as well as when the document is still. This stops unauthorized users from gaining access to your data even if they possess your password. Multi-factor authentication requires a second way to verify the identity of a user before they can access information. Activity monitoring to detect fraudulent logins and prevent them from occurring in the future.
Granular document permissions and restrictions settings, which prevent unauthorized document sharing and downloading. These features reduce the risk of data leakage and permit administrators to monitor the activities of every user within the project. Robust key management that securely generates storage, distributes, and revokes encryption keys. A rigorous auditing process and compliance with industry-standard Data Room Setup security practices such as ISO 27001, SOC 2 GDPR, and FINRA.
The ideal VDR is dependent on the type of data you will be uploading, and the number of users that are able to access the data. If you’re looking to store sensitive information you should choose a provider that has a high degree of security, as well as a range of other useful features to aid your project. For instance, if hosting a project with external guests, you might want to consider an VDR that has document watermarks to stop printing and sharing that’s not authorized.
