Any documents which are inside the company are sensitive data, which need to be stored securely. But in some cases, they need to be exchanged with third parties outside the company, for example during mergers and acquisitions. This is a very time-consuming and risky process, where documents are more at risk of data leakage than ever before. Virtual data rooms are versatile repositories that help secure your data and minimize any threats.
What is a virtual data room?
Virtual data rooms are digital spaces that are designed to store and securely share sensitive data of companies in any industry. You can put any financial, legal documents, employee or intellectual property information, and any other documents you need to successfully close a deal in a VDR.
Once you have set up the data room, you can grant temporary access to the space to a third party without the need for a face-to-face meeting and without having to worry about the integrity of your data.
VDR software is essentially an improved version of the old physical data rooms that came along with the development of modern technology. Only now companies stand to gain in many ways, the cost of maintaining an entire building for documents and materials for paper copies is reduced, now all the time that the two parties spent on traveling or searching for the necessary documents can be spent more efficiently and more effectively. Data rooms provide flexibility and ease of access no matter where you are or what time you want to go in there.
Why are data rooms important for security?
While the Internet has opened us up to many new possibilities, some ways to store or transfer documents online are not secure, especially if you’re sharing inherently personal information or sensitive company data. The list of these spaces includes, oddly enough, one of the most popular ways of messaging: email. It was subjected to a large number of cyber-attacks, resulting in unpleasant consequences for users. Now that the covid era is in its heyday, and when remote working online has become a priority, users especially need to be careful about the ways they store and share the information they use. According to research, online fraud has increased several hundred-fold at the beginning of the 2020 quarantine.
Data room helps you and your company avoid being a victim of cybercriminals because the space it provides is shielded from any tricks and possible threats.
How exactly does a VDR keep you safe?
Virtual data rooms, before offering their services, are tested by security standards, according to which they later receive security certificates. Depending on the protocol, you can see the level of security that VDRs can offer, the best ones are ISO, HIPA, SSL, and others.
Other additional security measures include document storage control. All important issues and projects can be discussed right inside the space without using any extraneous applications. Some vendors provide encrypted chat features, others provide a question and answer feature, as well as the ability to create notes and leave comments. Also, the administrator of VDR has full control over the access to the documents, so he can decide which users can see a document and what they can do with it. So, you can disable copying, printing, editing, forwarding, and even screenshot functions.
The administrator has access to information about the activity of all users inside the room, he can see who viewed what documents and what he did with them, this is also a huge plus for document security.