A virtual data room secure is an online environment where large quantities of confidential documents can be shared safely beyond the walls of a business. It is used for M&A due diligence, litigation, bankruptcies, fundraising audits or any other occasion when multiple parties are required to review sensitive data.
The most secure virtual datarooms are equipped with various security features that are industry standard to ensure information remains exactly where it belongs – inside the data room. These features include physical security, granular permissions settings and the ability to track document activities.
Data Center Security: The top VDRs use data centers of the highest quality with adequate physical security, such as offsite backups of data, redundancy of data and fire protection, as well as biometric access control. They also have a comprehensive business plan and regularly conduct penetration tests.
Document Access Security: The most reliable virtual data rooms provide specific permissions for documents that permit administrators to restrict access to certain folders and documents. They can also specify printing, viewing and downloading options. They also allow users to add dynamic watermarks to printed and viewed document pages and set limits on time for access.
Privacy Security: A reputable VDR surpasses or meets ISO 27001 compliance and is HIPAA fully compliant. It provides end-to-end encryption (E2EE) which impedes unauthorised access to information by hackers or service providers.
In addition, a top-rated VDR is certified by FINRA (Financial Industry Regulatory Authority) and SOC 2 (Service Organization Controls) which means it follows the most stringent practices for handling to safeguard PII. This helps prevent hefty penalties and other legal costs that can be incurred due to data breaches, as well as the loss of revenue that may result from compromised trade secrets or plans.