A virtual data room (VDR) is a safe environment for sharing confidential files online, irrespective of the boundaries of a company. It is a great tool for due diligence in M&A transactions as well as banking transactions and litigation cases. It’s like a company’s extranet but with types of due diligence much more security. The top VDRs come with several features to shield sensitive information from unauthorized access by third parties.
Some of the most crucial features include audit logs and the ability to grant granular access rights to documents. Two-factor authentication is also essential. This is crucial to keep documents safe from prying eyes. It’s also important to ensure that the VDR you choose has a user-friendly and flexible interface. You should also select the one that provides 24/7 support as your employees could be working on it from anywhere in the world.
It’s also important to determine whether the VDR you’re considering is equipped with secure encryption methods. This ensures that data that is transferred to and from the cloud server is secure. Top virtual data rooms come with the most advanced security certifications along with a myriad of other security features. Additionally, they store and share data on a project-by- basis, which increases security since a client or customer given access to one virtual data room cannot look through other projects or files. They also offer a complete history of who accessed what files and when. The built-in security feature in digital rights management (DRM) allows them to deny access to downloaded files.