VDR security is an important aspect for many companies who want to establish an online repository for their documents. The most secure virtual data rooms offer various features designed to guard sensitive information against breaches and compliance violations. These include advanced encryption in transit and at rest and user-specific permissions that can be customized and a discrete log of all document activities and thorough audit trail. Some providers offer additional document-specific tools, like blind viewing and watermarking in order to stop printing outs that are not authorized.
VDRs are mostly utilized to facilitate M&A transactions, but can be useful for any company that needs to share sensitive data with external third parties. When third parties, like external auditors or legal counsel are required to look over confidential documents, businesses need an easy platform to use.
Real estate firms and financial services usually require sharing the entire documentation with potential investors, lenders, and other stakeholders. These documents include blueprints, financial documents and property information. Traditional file sharing tools such as email or cloud storage are not designed to handle this amount of highly sensitive information. They are not equipped with the necessary permission settings, auditing capabilities, or secure collaboration options.
In this case, a virtual data room is the sole tool that can meet all of these requirements. It also provides 24/7 access to users who are authorized. A VDR ensures that sensitive data is treated in accordance to the ever-changing laws. This lets you be assured that your business is always in compliance.