The issue of security is always in the first place in business affairs because it ensures its integrity, productivity, and further success. With the advent of the Internet and digitalization, the risks of data leakage have not diminished, but there are many ways to store and share sensitive data digitally. A virtual data room is one of the best ways to provide sensitive information with complete security. VDRs are cloud-based but have a strong security infrastructure that allows you to store, share, collaborate on documents, and conclude complex transactions.
Why should VDRs be used for document storage?
Virtual Data Rooms is a professional and certified solution authorized to handle sensitive documents and meet international regulatory requirements. At the same time, it is very easy to use and multitask. As a result, business owners from various industries can find a VDR provider to help with their cases, such as litigation, real estate transactions, due diligence, mergers and acquisitions, fundraisers, and more. In addition, VDRs are more practical and cost-effective, allowing documents and messages to be exchanged quickly in a secure space, which helps speed up business transactions. But how exactly do they make data secure?
The main features of data room security features
VDRs vary in their “guts” depending on the industry they specialize in, but there is a set of must-have security features that are mostly present in quality providers:
- Compliance with regulatory requirements
The best international security certifications are ISO 27001, SOC 1 or 2, HIPAA, and GDPR. Data rooms meet several or at least one of these security certifications, which means they are truly secure.
- Secure encryption methods
With encryption, the entire content of your document is encrypted and becomes inaccessible to unauthorized users. With it, you can store and transfer documents digitally without the risk of leakage.
- Digital Watermarks
This feature also further protects data from theft. They can be applied to any file, including media files. In addition, they allow you to track who accessed the document and what actions were performed.
- Detailed settings for document permissions
The permissions settings of dataroom software are very flexible so that business owners can ensure the security of the transaction process. With this feature, you can prohibit and allow actions on documents depending on the responsibilities of the users. For example, you can regulate the ability to copy, print, forward, download, edit and screenshot a record. You can also prohibit partial or full visibility of the document.
- Audit logs
The platform independently reports on the activities of other users. You’ll be able to see the log-in and log-out times of VDR participants, as well as their actions within the platform and documents.
- Double Authentication
Users go through a two-step verification process before logging in, including a one-time code you should receive on your phone number or email.
- Self-Destruct feature
VDR space administrators can remotely erase any data regarding the data room from someone else’s space. This is often done if the user’s device has been lost.
Why does not use free cloud storage?
Although virtual data room services are becoming increasingly popular, some companies still find it worthwhile to use free document storage platforms such as Google Drive. However, this risk to saving money can cost a business a lot of money, including not only funds but also reputation, customers, and partners. In addition, free cloud platforms do not have enough security to store sensitive business data, although they have enough mobile collaboration capabilities.