As a substitute for the traditional physical data room virtual deal rooms have become standard software to share sensitive data. These platforms are typically employed to aid in facilitating due diligence in mergers and acquisitions, fundraising, and IPOs among other business transactions. However, the success of this business is dependent on the effectiveness of online security protocols. Cyber-attacks and data breaches could cause irreparable damage for companies their reputations as well their relationships with investors and customers.
One of the most important factors to consider when choosing a VDR is its security features. Make sure you choose a platform that provides granular settings for permissions as well as multiple layers of authentication (e.g. two-factor authentication or single sign-on), and IP restriction to safeguard your confidential files from unauthorized devices. Ideally you should have a VDR should also include digital rights management (DRM) policies that can be applied to individual documents. This will prevent unauthorized users from copying and downloading your data.
When evaluating the various VDRs make sure to look on their websites for the security page. This will give you an idea of how seriously the business takes security. It should also tell you whether they have an entire team dedicated to this purpose.
Another aspect to be considered is whether or not the VDR can be configured to create separate workspaces for various projects. This is essential to avoid projects from colliding or divulging confidential information. It is important to assign each project a unique name to allow them to be distinct in the VDR.