Data Rooms provide a solution for sharing and storing confidential documents that are used in business processes as well as financial transactions. Virtual Data Rooms are accessible online from any location at any time. They don’t require physical storage that relies on security measures such as secured rooms, surveillance cameras, or an attorney to ensure confidentiality.
VDRs are more secure than platforms such as Dropbox, Google Drive and email, as they are geared specifically towards enterprise-grade documents management. They offer features such as multi-factor authentication, granular permission controls, as well as technology to prevent leaks. This includes encryption of data at rest as well as features that block accidental or malicious deletions, such as the ‘view as’ tool and dynamic watermarking.
Be aware that even the best secure platform cannot stop human error. That’s why it’s important to choose a VDR that has features to lower the chance of errors like audit trails that record every action within the VDR and a user activity log that lets administrators know when users have accessed and modified sensitive data.
In addition, certain VDRs also have advanced artificial intelligence functions that facilitate collaboration and file management by automating routine tasks. This can help accelerate the process, maintain files in order, and make sure that no documents are duplicated. This is particularly useful for due diligence in M&A, construction projects, and other scenarios where large files have to be exchanged with various parties.
