Selecting a Virtual Data Room (VDR) and Data Security

In lieu of the traditional physical data room virtual deal rooms have become the standard software for sharing sensitive data. These platforms are used to facilitate due diligence during mergers and acquisitions, as well as fundraising and IPOs. However, the success of these platforms is dependent on the effectiveness of online security protocols. Cyber-attacks and data breaches can damage a company’s reputation, as well as their relationships with customers and investors.

Security features are one of the most important things to consider when choosing the best VDR. Find a VDR with granular permission settings, multiple layers of authentication (e.g. two-factor authentication or single sign-on), and IP restriction to safeguard your confidential documents from unauthorized devices. Ideally you would want to use VDR should also contain digital rights management policies (DRM) which can be applied to specific files. This stops individuals who are not authorized from copying or downloading your data.

When evaluating the various VDRs Be sure to look on their websites for the security page. This will give you an idea of how seriously the business takes security. It should also tell you if they have an entire team dedicated to this purpose.

Another aspect to consider is whether or not the VDR can create separate workspaces for various projects. This feature is crucial to ensure that projects do not overlap or sharing confidential information. It is crucial to give each project a unique name to ensure that they can be distinguished in the VDR.