The concept of a virtual data room is now well known worldwide. These solutions are widely used by thousands of companies of all sizes and industries worldwide. However, some still doubt their usefulness and reliability because they believe VDRs are no different from ordinary file-sharing programs. However, based on statistics, such programs are subject to data breaches regularly, while data rooms have no such reputation. Nevertheless, VDRs are a great option for storing sensitive corporate files; in this article, we’ll explain why.
What is a virtual data room?
A virtual data room is an online space created by cloud-based technology. It is a professional business tool that can be used for purposes such as:
- Data storage – upload any level of privacy to the VDR space, and your financial documents, legal data, and trade secrets are sure to be safe
- Business online collaboration – thanks to flexible settings and a wide range of features, companies can arrange inside the data room to work remotely on various projects. Also, the solution provides you with internal means of communication
- Complex Transactions – Virtual data rooms are used for various transactions, such as mergers and acquisitions, due diligence, fundraising, real estate transactions, litigation, IPOs, and more. Its capabilities allow you to share and sign documents in a secure space
How secure are VDRs?
As mentioned earlier. VDRs are professional tools; therefore, data room providers meet certain regulatory requirements to prove they have the right to handle your confidential documents legally. Data rooms are certified to international security standards and have a bank or military-level protection. They may have the following licenses to prove their credibility:
- ISO 27001
- ISO 27081
- HIPAA
- GDPR
- SOC 1 or 2
- FINRA
VDR features that keep your data safely in the space
Virtual Data Rooms take care of your sensitive data like no other. It protects their integrity while allowing them to be shared freely with temporary VDR participants simply and quickly through features such as:
- Centralized Storage
The Data Room provides the ability to store all data in one place. This makes them much easier to manage and search, as well as mobile since your employees and potential partners can log into the repository from any device and location. At the same time, logging into the vault is securely protected by dual authentication, and spaces offer a single sign-on function and multi-step verification if the user wants to log in from a new device.
- Protection from external threats
Companies are often subjected to cyber attack attempts, as hackers do not sleep and constantly try to find a weakness in your defenses and take advantage of it. Virtual data rooms offer multiple layers of protection and use built-in anti-virus to ensure that no virus can get through with the documents you download and an encryption feature that encrypts documents at rest and during transmission. In addition, unauthorized persons cannot access the document’s contents unless they have the decryption key.
- Document Access Control
The space administrator can allow and block access to folders and documents at different levels. Depending on the individual user’s role, it will also depend on what they can see and interact with. For example, the space can prohibit partial or full document visibility, copying, printing, forwarding, editing, uploading, and even screenshotting. Also, VDR has watermarks, which serve as additional protection against copyright infringement and data leakage.