A secure virtual dataroom is an online repository that allows business documents with confidential information to be shared and looked at. A VDR allows companies to conduct M&A deals, acquire contracts, perform due diligence and raise capital without exposing sensitive information to the wrong people.
A top-tier VDR must offer the following security features:
The encryption of documents is both in transit and at rest. This prevents unauthorised users from accessing your data even if they know your password. Multi-factor authentication requires a second form of identification to confirm the identity of the user before they are able to view information. Monitoring activity to detect and prevent unauthorised logins.
Granular document permissions, and restrictions settings to prevent unauthorised sharing and downloads of documents. These features decrease the risk of leakage of data and allow administrators to monitor each user’s actions within a project. Secure key management that creates keys, distributes them, stores them and deactivates encryption keys. A rigorous auditing of conformance to industry standards, such as ISO 27001 and SOC 2. GDPR, FINRA, and ISO 27001.
Choosing the right VDR to meet your needs will depend on the secure virtual data room type of information you’ll upload and how many users will have access to it. If you’re storing sensitive information, choose one that offers a high-level of security as well as various useful features to help you with your project. Consider a VDR with watermarks on documents if you’re hosting an event that involves external parties. This will prevent unauthorized printing and sharing.