What Is a Secure Data Room?

A virtual data room, or VDR, is a secure online repository for critical and sensitive corporate documents. It is a modern-day equivalent of a physical room, in which hard copies of company documents are reviewed as part of a buying or sales negotiation. However, it also comes with many security features that block unwanted third-party access to.

Many VDR providers make a big fuss about how secure their servers are by claiming that their platform is the most secure virtual data space, however this is not true and is not appropriate for the purpose. To truly secure, a dataroom must ensure that only authorized users have access to view documents. It should be sure that unauthorised users cannot share login credentials with non-authorized individuals.

The secret sauce of true data room security is that it goes far beyond server security and encompasses the entire process of uploading, viewing and downloading files from your virtual data room. This includes the creation of a hierarchical folder structure and standardized names for documents to make it easier to keep track of your documents and also individual permission settings to limit who can view what. Additionally, it should include advanced audits and reporting to help you identify any issues that could arise for example, by identifying who has viewed which documents.

It is worth noting that the majority of data breaches are the result of human error, and the majority of them can be avoided by using advanced security features. This should include the latest encryption technology to scramble documents in transit and a solid multi-factor system to block the unauthorized access.

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