Every entrepreneur understands that security is the most valuable thing he can get when it comes to storing and exchanging sensitive data during various transactions. However, achieving this security is not easy, not all document exchange tools are suitable for business activities, and the traditional method of transacting has long outlived its usefulness. So how to be? Introducing electronic data rooms. This technological business solution will equip your operations with multiple layers of security in all circumstances.
Why is a virtual data room considered secure?
Virtual data rooms are certified business software, however, their level of security also depends on the certificate it has, as well as the presence of additional security features. Now, the rules for keeping sensitive data are stricter than ever, as intangible data, such as intellectual property, are more valuable assets than anything tangible.
A VDR is the smartest purchase for a business owner because in its space you can act freely, control the level of access to documents yourself, and not be afraid to share them with unauthorized users during due diligence, fundraising, or other financial transaction. The data room also provides some other benefits related to data management and allows you to transact remotely, more smoothly, and efficiently.
How do virtual data rooms work
A virtual data room is a comprehensive program with storage for every type and privacy of data. They are much more sophisticated than conventional cloud storage. VDRs are designed for large-scale transactions that involve large numbers of documents. However, not all employees will have access to the data. Only administrators have full control over the documents; they filter the data that is uploaded to the data room and decide who can access what. Before due diligence, all data is structured into folders and their permissions are determined. In general, the work in the VDR can be described by the following algorithm:
- Loading and organizing all the necessary documents for a particular transaction
- Setting security measures for data
- Inviting temporary users to the space
- Monitoring of all the activities that occur in the space
- Interacting with partners through collaboration tools, answering their questions, leading discussions, etc.
- Closing the deal and moving the entire room to the archive
Secure Data Room Functions
VDRs generally have a defined set of security features from the following list:
- Data encryption- It converts files and messages into unreadable code, thereby protecting them from external hacks and data leakage. Encryption occurs both in the state of storage and exchange of documents
- Backup -consists permanently, so if your system gets infected or crashes, you are guaranteed to keep your data in the form it was in the last saved backup version
- Detailed user permissions – User access and permissions to documents are strictly controlled by administrators. They are granted access according to their roles and responsibilities, so if a user has nothing to do with a document, they will not even see it. It is also possible to prohibit copying, printing, forwarding, and downloading data
- Remote destruction-you can block access to any file, even if it has already been uploaded to a third-party device. Plus. It helps with disposing of obsolete files
- Two-factor authentication – the feature helps minimize the risk of password theft and unauthorized access because it also asks users for a one-time code when logging in
- Audit trails – the administrator can see the actions of each user within the space, down to the exact time of a particular action