The security of confidential information is vital during business processes and transactions. Virtual data rooms permit users to store and share private documents in a controlled setting. Typically, they are utilized to conduct due diligence in M&A deals however, they can also be used for other reasons as well.

The best VDRs offer a range of features to ensure that documents are safely stored and shared throughout a deal or process. For instance, they can include two-factor authentication that requires not just a password, but also specific information or codes that are unique to each user. This reduces the risks of data breaches caused by compromised passwords. Many VDRs also provide granular access rights that allow access to specific files. IP restriction is another feature that restricts access to virtual data rooms to specific IP addresses. This helps protect sensitive dataroomanalytics.net/how-does-a-digital-data-storage-work-and-which-features-to-consider information from being downloaded to unauthorised devices and stops leaks.

Other features that are offered on certain VDRs include watermarking, which displays an unchangeable identifier to each document, and audit logs, which record the actions taken on documents within the data room. They are helpful in determining who has accessed and modified what files and aid in the investigation of data breach. Other beneficial features include secure spreadsheet viewing, which makes sure that content in Excel files can only be viewed by a specified users.

Verify the certifications and requirements of the data storage facility to ensure that it offers the appropriate level of security for your files. Ideally, it should be PCI DSS Level 1 ISO 9001 or ISO 27001 FIPS 140-2 MTCS Level 3. Some investment banks have a list of approved vendors that lists data rooms they are happy to work with. You should look for an organization that has these credentials and has a solid reputation within the industry.