A virtual data room secure is an online location where large volumes of confidential documents can be safely shared beyond the boundaries of a company. It is used for M&A, due diligence and bankruptcies, litigation audits, as well as any other occasion when multiple parties are required to review sensitive information.
The most secure virtual datarooms are equipped with numerous security features that meet industry standards https://6dataroom.com/what-are-the-different-types-of-due-diligence/ to ensure information remains where it belongs: within the data room. These include physical security and granular settings for permissions, as well as tracking document activities.
Data Center Security: The top VDRs employ data centres of industry standard with adequate physical security, which includes offsite backups of data, data redundancy and fire protection as well as biometric access control. They also employ a strong business continuity plan as well as undergo regular penetration testing.
Document Access Security: The most secure virtual data rooms offer granular permissions for documents which allow administrators to restrict access to certain folders and documents. They can also specify printing only, viewing only, and downloading options. They also permit users to apply dynamic watermarks to the pages of documents printed and viewed, and set time limits for access.
Privacy Security: A reputable VDR has been tested and meets or exceeds ISO 27001 compliance and is HIPAA fully compliant. It offers end to end encryption (E2EE) that blocks unauthorised access to information by hackers or service providers.
Finally, a VDR that is highly rated will be certified by FINRA (Financial Industry Regulatory Authority) and SOC 2(Service Organization Controls) and ensures that it adheres to the highest standards of handling practices to protect PII. This helps prevent hefty fines and other legal costs associated with data breaches, and the loss of revenue that can result from breached trade secrets or strategic plans.
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