Selecting a Virtual Data Room (VDR) and Data Security
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In lieu of the traditional physical data room virtual deal rooms have become the standard software to share sensitive data. These platforms are used to facilitate due diligence for mergers and acquisitions, as well as fundraising and IPOs. However the success of this industry is contingent on the use of effective online security protocols. Cyber-attacks and data breaches can damage a company’s reputation, as well as their relationships with investors and customers.
One of the most important elements to consider when selecting the right VDR is its security features. Make sure you choose a platform that has granular permission settings and multiple layers of authentication (e.g. Two-factor authentication, single sign on and IP restriction are all methods to secure your confidential files from unauthorised devices. Ideally you should have a VDR should also contain digital rights management (DRM) policies that can be applied to individual files. This will stop unauthorized users from downloading and copying data.
When evaluating different VDRs be sure to check their websites for their security pages. This will give you an idea of how seriously the business takes security. It should also inform you whether they have an entire team dedicated to this purpose.
A VDR that can distinct workspaces is another important aspect to take into consideration. This feature is crucial to stop projects from merging or sharing confidential information. It is also important to ensure that different projects have distinct names so that they can be differentiated from one another in the VDR.