A virtual dataroom (VDR) can be described as a digital repository that helps collaboration by sharing sensitive data and encrypting it in a secure environment. Companies use VDRs to protect sensitive data from cyberattacks, downloading and viewing without authorization particularly during crucial business transactions like M&A deals.
For companies looking to protect their valuable intellectual property and confidential data, the advantages of using secure VDR outweigh any risks associated with traditional file-sharing methods like email or cloud storage. Data leaks can be costly to an organization in terms time, money and even reputation. The best way to prevent such an event is to put in place an effective security system.
The typical features of VDR security include multi-factor authentication for confirming user identities, granular permission settings for controlling access to documents and digital files and audit logs to track the activities of files. Regular data backups also ensure that the data stored in the VDR is able to be recovered when the system fails or is subject to cyber-attacks.
If a company is searching for a VDR and is looking for one, they should opt for one that employs an industry-leading encryption system to encrypt sensitive information during transmission. It also provides a failsafe if an unauthorised user gains access to the file or document. Advanced security measures like MFA and login monitoring to monitor the IP address device, the location of the user can be used to protect against data breaches as well as other types of security breaches.
Companies regulated by regulatory bodies like the FCA should also make sure that the policies on handling data of their VDR provider are in line with the regulations. This will ensure that any issues or complaints are handled quickly and fairly and reduces the risk of legal complications and damage done to a company’s reputation.