A virtual data room secure is an online space that allows large volumes of confidential documents can be safely shared beyond the walls of a company. It is utilized for M&A, due diligence and litigation, bankruptcies, fundraising audits or any other time multiple parties must review sensitive data.
The most secure virtual datarooms include an array of security features that are industry-standard to ensure information remains exactly where it belongs – inside the data room. These features include physical safety, granular permissions settings and recording document activities.
Data Center Security: The best VDRs employ data centers that are of the highest standard equipped with adequate physical security measures including offsite data backups, data redundancy and fire protection as well as biometric access control. They also utilize a robust business continuity plan, and go through regular penetration testing.
Document Access Security: The best virtual data rooms provide granular document permissions that allow administrators to restrict access to individual documents and folders with the option of printing only, viewing only and download options. They also offer the option to apply dynamic watermarks to printed and viewed pages and set time frames to allow access by users.
Privacy Security The VDR that is HIPAA-compliant and meets ISO 27001 compliance or exceeds it, will provide privacy protection. It provides end-to-end encryption (E2EE) which impedes the unauthorized access of information by hackers or service providers.
Finaly, a VDR that is highly rated will be certified by FINRA (Financial Industry Regulatory Authority) and SOC 2(Service Organization Controls), ensuring it adheres to the highest standards of methods of handling to protect PII. This can help avoid costly fines and other legal expenses related to data breaches and also the loss of revenue that can result from compromised trade secrets or strategic plans.
https://6dataroom.com/what-are-the-different-types-of-due-diligence/