The security performance of confidential information such as documents, agreements and financial statements is an important consideration when it comes to business deals like initial public offerings, M&A lifecycle management, restructuring management of projects, restructuring, and more. File-sharing services are convenient, but lack the features required to protect information during these deals. Virtual data rooms ease sensitive document management in these scenarios and safeguard intellectual property of companies from unwelcome surveillance.
The most secure virtual data rooms have advanced security features to prevent unauthorised access to data that is crucial to business. They include 256-bit encryption both at rest and in transit firewalls, as well as virus protection. Some providers also employ multiple servers in different locations, so that data is always accessible.
Physical security is a important aspect of a secure VDR. The best data rooms are in world-class data centers, with multiple levels of redundancy and fire protection. They also provide secure remote access that includes two-factor authentication. Certain vendors let you define the exact location of a data center that complies with your security guidelines.
Data room security features include complex passwords as well as requirements for changes and expiration, timeouts for inactivity, and others. Some virtual datarooms allow you to block certain areas of a document, so that only the most important information is visible. You can also add dynamic watermarks to documents to indicate which users viewed and printed them. They are especially useful when someone could have snuck a photo or scan of your documents.