When important decisions are being made like a merger, acquisition, tender or capital raising there is usually the need for outside third parties to scrutinize a company’s documents. This can require the thorough examination of tens or even thousands of confidential documents. To allow this to happen without risking a data breach and creating a compliance violation, businesses have to utilize a virtual information room.
Secure data rooms are commonly called VDRs. They allow users to safely access and view sensitive data online. With top security features and iron-clad encryption, an VDR is the best option for business transactions that require to be kept safe.
A secure dataroom facilitates efficient collaboration by allowing multiple stakeholders collaborate on projects at the simultaneously. It also makes it easier to manage processes such as Q&A and document revision, making due diligence a much faster and easier process.
To safeguard documents, the majority of’secure data rooms’ rely on the old-fashioned login and password model. Any system that does not restrict authorized users from sharing login credentials (and consequently your documents) is not appropriate for its purpose. These systems often make bold statements about their security with terms such as ‘the most secure data rooms”, ‘highest level of security’, etc. This is marketing jargon.
A secure dataroom utilizes an ISO 27001-certified system that provides access with granular rights, dynamic watermarking and two-factor authentication in addition to other features to ensure that documents are not compromised in the real time. In addition, it ensures all user activity is logged and recorded to ensure auditing purposes. This is the only way to ensure your documents are safe when shared with third parties.