Security of data room software is a hot topic since businesses place a high priority on the protection of sensitive data. However, with the constant news about breaches and leaks, a lot of people are asking if the typical virtual data room is safe or how to ensure the best-in-class security features are implemented. This article will help you understand the basics of the virtual data room and help you determine which security features are essential to ensure the security of your personal information.
A virtual data room (VDR) is an online digital repository that is used for the secure storage and sharing of sensitive documents. Contrary to personal file sharing and cloud storage solutions, such as Dropbox and Google Drive, a VDR encrypts all information during transfer, uploading to the server, during sharing and when in storage, shielding it from hackers and other unauthorized users.
VDRs are commonly used in due diligence for M&A deals, thereby creating a safe environment for both sides of the deal to share and see sensitive information such as financial performance, patents, and product development. They can be used to share documents internally and for collaboration. In addition to 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 changes and restrict access to specific dates and times or IP address restrictions.
A VDR typically supports industry compliance standards, such as HIPPAA and PCI-DSS for cloud storage, and ISO 27001 and SSAE-16 for transmission of sensitive data. A reliable VDR allows you to establish a data policy to govern the upload of all files, ensuring that the correct version of each document is downloaded. This will prevent data loss and ensures that information is not compromised when it is removed from your system. It should also include redaction tools to eliminate sensitive information from documents. This is crucial because it reduces the chance of human error which is the primary cause of data breaches. It can also help safeguard your company’s reputation as one that is a leader in security.
