The security performance of confidential information such as documents, agreements, and financial statements is a critical consideration in business transactions like initial public offerings, M&A lifecycle management, restructuring management of projects, restructuring, and many more. File-sharing apps that are generic can be convenient however they lack the capabilities needed to reliably protect data during these deals. Virtual data rooms are an excellent method of managing sensitive documents during these times and protect intellectual property.
The most secure virtual data rooms have advanced security features to prevent unauthorized access to business-critical data. These include 256 bit encryption in rest and during transit, firewalls and virus protection. Some providers also employ multiple servers in different locations to ensure that data is always accessible and stored.
Physical security is also a crucial aspect of a reliable VDR. The best data centers are world-class facilities with different levels and types of fire protection. They also provide secure remote access that includes two-factor authentication. Certain vendors let you specify the exact location of the data center that complies with your security policies.
Data room security features include complex passwords, requirements for change and expiration and timeouts in case of inactivity and many more. Some virtual datarooms let you make certain sections blacked out of a document so only the most important information is displayed. You can apply dynamic watermarks to documents that indicate who has printed and viewed the document. They are particularly useful in situations where someone may have surreptitiously photographed or scan your document.
