A virtual data room secure is an online location in which large volumes of confidential documents can be shared securely beyond the walls of an organization. It is used for M&A, due diligence and litigation, bankruptcies or fundraising audits, or any other time when multiple parties are required to review sensitive data.
The best virtual datarooms come with various security features that are industry-standard to ensure that information stays where it belongs: within the data room. These features include physical safety and granular settings for permissions, as well as recording document activities.
Data Center Security: The top VDRs employ data centres of industry standard with adequate physical security, which includes offsite backups of data, data redundancy and fire protection as well as biometric access control. They also have a robust business plan and conduct regular penetration tests.
Document Access Security: The top virtual data rooms come with specific document permissions that permit admins to restrict access to folders and individual documents with the option of viewing only, print and download options. They also provide the option to add dynamic watermarks onto printed and viewed pages of documents and set time-frames for access by users.
Privacy Security: A reliable VDR has been tested and meets or exceeds ISO 27001 compliance and is HIPAA compliant. It provides end-to-end encryption (E2EE), which prevents the unauthorized access of information by hackers or service providers.
In the end, a VDR that is rated highly is certified by FINRA (Financial Industry Regulatory Authority) and SOC 2(Service Organization Controls) and ensures that it adheres to the strictest handling practices to protect PII. This can help in avoiding the massive fines, legal fees and loss of revenue that are associated with data breaches.