Choosing Data Room Software Safety
The security of confidential information during financial transactions is crucial. Virtual data rooms permit users to keep and share private documents in a controlled environment. They are typically employed to perform due diligence in M&A transactions, but they can also be used for different purposes.
The top VDRs have a range of features to ensure that documents are securely stored and used throughout a transaction or a process. They can, for instance include two-factor verification, which requires that not just the password is used, but also real data and codes that are unique to each user. This reduces the risks of data breaches due to compromised passwords. Many VDRs also provide granular access rights that restrict access to certain files. Another feature is IP restriction, which restricts access to the virtual data room to a specific IP addresses. This stops sensitive data from being downloaded onto unauthorized devices, and helps keep information from being leaked.
Other features offered on certain VDRs include watermarking, which displays an unchangeable identifier to each document, as well as audit logs, which record the actions of the data room’s files. These can be used to determine who has accessed or modified files, and can also aid in the investigation of data breaches. Other features that are beneficial include secure spreadsheet viewing, which assures that data in Excel files can only be viewed by specific users.
When choosing a data storage facility make sure you check its certifications and standards to confirm that it is able to provide the proper level of security for your documents. Idealy, it should be PCI DSS Level 1 ISO 9001 or ISO 27001 FIPS 140-2 MTCS Level 3 Some investment banks keep a list of approved providers that have data rooms with whom they are pleased working. You should choose a data room provider who has these credentials and has a great reputation within the industry.