Data Rooms offer a solution for storing and sharing confidential documents used in business processes and financial transactions. Unlike physical storage, which is dependent on security measures such as security cameras and locked rooms, or the presence of a lawyer to maintain privacy, Virtual Data Rooms (VDRs) are accessible anytime, from any location with an internet connection.
VDRs are more secure than platforms such as Dropbox, Google Drive and email, due to the fact that they are specifically designed for document management for enterprises. They offer features such as multi-factor authentication and granular permission controls, along with techniques to prevent leaks of data. This includes encryption of data-at-rest as well as features that block accidental or malicious deletions, such as the “view as” tool, and dynamic watermarking.
It is important to keep in mind that even the most secure platform isn’t an absolute solution human error can continue to occur. It’s important to select a VDR with features that lower the chance of mistakes, such as an audit trail that records all activity within the VDR and a log of users that allows administrators board management software features to track how users have accessed and modified sensitive data.
In addition, some VDRs also come with advanced artificial intelligence capabilities that can improve collaboration and management of files by automating the routine tasks. This can accelerate the process, ensure that files are organized, and make sure that no documents are duplicated. This is particularly useful in due diligence for M&As and construction projects or any other situation that requires large files to be exchanged between parties.