As a replacement to the traditional physical data room, virtual deal rooms have become standard software to share sensitive information. These platforms are widely utilized to facilitate due diligence in mergers and acquisitions, fundraising and IPOs among other business transactions. However, the success of these platforms is dependent on the effectiveness of online security protocols. Cyber-attacks and data breaches can result in irreparable damage to companies reputations, as well the relationships they have with customers and investors.
One of the most important factors to consider when selecting a VDR is its security features. Choose a platform that has multi-layer security, granular permissions and multiple layers (e.g. Two-factor authentication, single sign on and IP restriction are all ways to safeguard your private files from unauthorised devices. Ideally, the VDR should also incorporate digital rights management (DRM) policies that can be applied to specific files. This will stop unauthorized users from copying and downloading data.
When you are evaluating various VDRs Be sure to check their websites for the security page. This will give you an idea of how seriously the business takes security. It will also inform you whether the company has a dedicated security team.
A VDR that can separate workspaces is an additional feature to consider. This is essential to avoid projects from colliding or revealing confidential information. It is important to assign each project a distinct name to ensure that they can be identified in the VDR.