Data room software safety is a hot issue as businesses prioritize the protection of sensitive information. With all the reports of data leaks and breaches, many people are wondering if the average virtual data room is safe or how to ensure the best-in-class security features are in place. This article will help to clarify the fundamentals of virtual data rooms, and also highlight the security features essential to protect your data.
A virtual data room (VDR) is a collaborative digital repository designed to ensure the safe storage and sharing of sensitive documents. A VDR, unlike cloud storage and personal file sharing solutions such as Dropbox or Google Drive, encrypts information during uploading, transmission to the servers storage, sharing, and. This shields it from hackers and unauthorised users.
VDRs are commonly used for due diligence for M&A transactions. They create a safe environment for both parties to communicate and access sensitive information, such as financial performance and patents. They are a great tool for sharing documents within the company and to collaborate. In addition to having granular access permissions, such as by folder and document level VDRs can also be configured to allow for document level access. VDR can also be set to notify users of amendments and limit access to certain dates and times, or IP address restrictions.
A VDR will usually support industry compliance standards like HIPPAA and PCI-DSS for cloud storage and ISO 27001 and SSAE-16 for transmission of sensitive data. A good VDR lets you create a data policy that regulates all uploaded files, to ensure that the right version of each document is downloaded. This will prevent data loss and ensures that information is not compromised once it has left your system. Additionally, it should have tools to remove sensitive information from documents. This is important because it can reduce the likelihood of human error which is the main cause of data breaches, and also help protect your reputation as a company that prioritizes security.
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