What is a Secure Data Room?
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When crucial decisions are being made, such as mergers, acquisition or capital raising, there is often a need for external third parties to scrutinize the company’s documents. This can mean a thorough review of tens or thousands of confidential documents. Businesses need to use a virtual room for this without putting themselves at risk of data breaches and creating compliance violations.
Often known as VDR, a secure data room makes it simple for users to review and access sensitive information securely online. With top security features and a solid encryption, a VDR is the perfect solution for transactions in business that require to be protected.
Secure datarooms allow for efficient collaboration by allowing multiple participants to collaborate on projects at same time. It helps streamline processes like documents and Q&As which makes due diligence simpler.
To protect documents, most’secure data rooms’ rely on an old-fashioned login and password model. Any system that does not prevent 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 with terms such as ‘the most secure data rooms with the highest levels of security’ etc. This is marketing jargon.
A secure dataroom utilizes an ISO 27001-certified security system that gives access to users with granular permissions to dynamic watermarking, as well as two-factor authentication in addition to other features to ensure that documents are not compromised in the real time. In addition, it makes sure that all user activity is logged and recorded to be used for audit purposes. This is the only way to ensure that documents are safe when shared with a third party.
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