A virtual data room (VDR) is a secure space for sharing confidential files online outside the walls of a business. It can be used to conduct due diligence in M&A transactions or banking transactions as well as litigation cases. It’s similar to an extranet for a company, but with much better security. The best VDRs offer numerous features to safeguard sensitive information from third parties.
The most important features include audit logs and document-specific permissions. Two-factor authentication is a must. This is essential for keeping documents secure from the eyes of prying eyes. Additionally, it’s crucial to make sure that the VDR you choose is user-friendly and flexible interface. You should also consider a virtual data room that can be accessed throughout the day as your stakeholders may be working with it across the globe.
It is also worth considering the VDR’s encryption methods. This ensures that data moving to and from the Data Room server in the cloud is secured. Top virtual data rooms come with advanced security certifications, and a variety of other security features. They also store and share data project by projects, which boosts security because a customer or client who has access to the virtual data room cannot spy on other files or projects. They also offer a complete history of who used which files and when. The built-in security feature in digital rights management (DRM) allows users to block access to downloaded files.