Selecting a Virtual Data Room (VDR) and Data Security

Virtual deal rooms are a standard software that can be used to share sensitive data as an alternative to the physical data room. These platforms are widely used to help facilitate due diligence in mergers and acquisitions, fundraising, and IPOs among other business transactions. The success of this business is dependent on a strong security system for online transactions. Cyber-attacks and breaches of data can cause irreparable damage to companies’ reputations, as well the relationships they have with customers and investors.

One of the most important things to consider when choosing the right VDR is its security features. Look for a platform that provides granular settings data security in the age of cybercriminals for permissions, multiple layers of authentication (e.g. Two-factor authentication, single sign on and IP restriction are all methods to secure your private information from unauthorized devices. Ideally the VDR will also include digital rights management policies (DRM) that can be applied to specific documents. This can stop unauthorised users from downloading and copying data.

If you are looking at different VDRs, be sure to look on their websites for the security page. This will give you a sense of how seriously the company is concerned about security. This will also inform you whether the company has a dedicated security staff.

Another aspect to be considered is whether or not the VDR can be used to create distinct workspaces for different projects. This is essential to avoid projects from colliding or revealing confidential information. It is essential to give each project a distinct name to ensure that they can be identified in the VDR.