External parties are frequently asked to review documents when important decisions like merger or acquisition or tender or capital raising are being made. This could require a thorough review of tens or even thousands of confidential documents. To allow this to happen without putting themselves at risk of a data breach and creating violations of compliance, companies have to utilize a virtual information room.
Secure data rooms are often called VDRs. They permit users to safely access and view sensitive data online. A VDR offers top-notch security and encryption to ensure transactions are secure.
Secure data rooms allow for efficient collaboration, allowing many parties to collaborate on projects at the same time. It also simplifies processes such as Q&A and document versioning, which makes due diligence a much faster and easier process.
However, most ‘secure’ data rooms use an outdated model of passwords and logins to protect documents. Any system that doesn’t restrict authorized users from sharing their login credentials (and therefore your documents) is not fit for purpose. These systems typically make bold statements about their security using phrases such as’most secure data rooms’, ‘highest levels of security’, etc. This is a form of marketing.
A true secure data room employs an ISO 27001 certified system that gives access to users with granular permissions dynamic watermarking, two-factor authentication, and more to prevent document breaches in try this out real time. It also ensures that all user activity is recorded and logged for auditing. This is the only way to ensure that documents are secure when shared with the third party.