How to Make a Virtual Data Room Secure
A virtual data room secure is a digital space where large volumes of confidential documents can be securely shared beyond the boundaries of a company. It is commonly used for M&A deals, due diligence, litigation, bankruptcies and audits, fundraising, any time multiple parties need to review sensitive data.
The best virtual datarooms include an array of security features that are industry-standard to ensure that data stays where it belongs – within the data room. These features include physical safety as well as granular permissions settings for the ability to track document activities.
Data Center Security: The most secure VDRs make use of data centers that are industry-standard with adequate physical security measures including offsite backups of data and redundancy of data in the event of fire, and biometric access control. They also implement a robust business continuity plan and undergo regular penetration tests.
Document Access Security: The most effective virtual data rooms give the ability to grant documents granular access rights that permit administrators to restrict access to specific folders and documents. They can define printing only, viewing only, and downloading options. They also permit users to add dynamic watermarks on printed and viewed document pages and set time limits for access.
Privacy Security The VDR that is HIPAA-compliant and meets ISO 27001 compliance or exceeds it, will provide privacy security. It offers end-to-end encryption (E2EE) to prevent unauthorised interceptions of data by service providers and hackers, and to prevent data from being altered or deleted.
In the end, 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 strictest handling practices to protect PII. This will help avoid the hefty fines, legal costs and revenue loss that can result from data breaches.
