What Makes VDRs Completely Secure?

confidential documents

What Makes VDRs Completely Secure?

When enterprises and businesses transition from a traditional data room to a virtual one, it’s only natural to wonder how VDR technology handles confidential information. After all, for mergers, acquisitions, transactions, and fundraising, you must be able to carefully curate and maintain sensitive documents while limiting access to these confidential documents and files.

Unlike a physical data room, a virtual data room removes common physical security risks. However, you should still be aware of standard VDR features that benefit M&A due diligence, sharing confidential documents, and access permissions across remote users and teams. Here are a few features that enhance VDR security for enterprise brands.

A virtual data room solution has access permissions for sensitive data.

Whether it’s intellectual property that requires the utmost security protocols or it’s a file of financial statements that are critical to M&A due diligence, VDRs enable brands to set granular access permission that depends upon roles and can limit who can interact with your deal room and when. For example, if someone has admin permission, they may access confidential documents more efficiently than an associate.

In addition, unlike the security limitations of physical data rooms, virtual data room access controls streamline your system permissions and ensure only authorized accounts enter the data room. When you couple this with the general ease of use, it’s apparent why many brands depend on a virtual data room solution to streamline the M&A due diligence process or other financial transactions and fundraising opportunities.

Virtual data room solutions incorporate two-factor authentication.

One of the most significant benefits of any virtual data room solution is how simple it is for an administrator to enable two-factor authentication. Two-factor authentication ensures that VDR users can’t log in with a password alone as part of a secure virtual data room. Two-factor security features are beneficial in that they’ll send a virtual data room user a push notification or a code. Without this additional authentication, users can’t enter the secure data room and interact with secure documents or confidential data. A service provider can inform you how to implement two-factor authentication to protect yourself against data risks and password leaks.

Virtual data rooms enable you to set watermarks.

When you’re sharing secure documents within a VDR workspace, it’s necessary to incorporate watermarks throughout your files. Watermarks help you maintain ownership of your critical documents and prevent any unauthorized use. In addition, dynamic watermarks prevent veteran and new users from illegally copying data, leading to litigation and other system complications.

A secure virtual data room should offer both dynamic and static watermarking capabilities to adapt to any of your unique business situations. Since you can also use collaborative features to track who is downloading or printing off any critical information, it can help you prevent data leaks amongst interested parties.

VDR audit logs include comprehensive data.

When you need comprehensive reports on document activity and want complete control over your analytics, you’ll need to turn to VDR audit logs. VDR logs are the most comprehensive source of information and analytics concerning large files, uploads, downloads, document activity, user activity, and more. A complete audit trail is necessary when you need to see who accesses your confidential files or interacts with your VDR. This is especially true for any virtual deal room business processes that deal with sensitive information or document security.

A virtual data room operates as a collaboration platform, a complete due diligence solution, and a secure file-sharing platform. When you need a secure platform for your M&A process or fundraising partnership efforts, online data rooms are the ideal solutions to keep your data out of the wrong hands and your sensitive information secure.


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