A virtual data room secure is an online location where large quantities of confidential documents can be shared safely beyond the walls of an organization. It is typically utilized for M&A deals due diligence, litigation, bankruptcies and audits, fundraising, any time there are multiple parties that require a review of sensitive data.
The best virtual datarooms have an array of security features that are industry-standard to ensure information remains in the right place – within the data room. These features include physical security, granular settings for permissions and keeping track of the activity of documents.
Data Center Security: The best VDRs employ data centres of industry standard with adequate physical security. This includes offsite backups of data, redundancy of data and fire protection as well as biometric access control. They also implement a robust business continuity plan and go through regular penetration testing.
Document Access Security: The most secure virtual data rooms come with the ability to grant document access in granular ways that allow administrators to restrict access to specific documents and folders and specify viewing only, print and download options. They also permit users to add dynamic watermarks to the pages of documents printed and viewed, and set time limits for access.
Privacy Security Privacy Security: A VDR that is HIPAA compliant and meets ISO 27001 compliance or exceeds it, will provide privacy security. It provides end-to-end encryption (E2EE) that blocks from unauthorized access to data by service providers or hackers.
The final word is that a VDR that is highly rated is certified by FINRA (Financial Industry Regulatory Authority) and SOC 2(Service Organization Controls), ensuring it adheres to the strictest methods of handling to protect PII. This helps prevent hefty penalties and legal costs that can be incurred due to data breaches, as well as the loss of revenue that may result from compromised trade secrets or strategic plans.
