A secure virtual data room is an online repository where confidential documents from businesses can be reviewed and shared. A VDR allows businesses to conduct M&A transactions, procure contracts, perform due diligence and raise capital without having to disclose sensitive information to the wrong people.
A top-of-the-line VDR should offer the following security measures:
Document encryption in transit and in rest. This safeguards information from being accessed by unauthorized users, even in the event that they gain access your password. Multi-factor authentication requires a second way to verify a user’s identification before they are able access the information. Activity monitoring to detect unauthorized logins and prevent them from happening in the future.
Granular document permissions and restrictions settings, which stop unauthorized document sharing and downloads. These features reduce the chance of data leakage and allow administrators to keep track of every user’s activity within the project. Key management system that generates keys, distributes and stores encryption keys safely. Completely auditing compliance with industry standards, including ISO 27001 and SOC 2. GDPR, FINRA, and ISO 27001.
The right VDR is dependent on the type of data you will be uploading, and how many users will have access. If you’re looking to store sensitive information, look for a provider that has a high degree of security as well as a variety of other features that will assist your project. For example, if you’re hosting a project with external guests, you might want to consider a VDR that can support document watermarks to stop unauthorized sharing and printing.
https://dataroomsearch.blog/private-equity-data-room-setup-and-management/
