Virtual Data Room provides a secure, central place for authorized parties to access and share digital files with complete transparency. The heaviest VDR users are in life sciences and technology, but companies in every industry need to safeguard confidential information. Look into features such as information on usage at the file level, robust controls, and customisable permission settings when evaluating potential VDR vendors to ensure your documents are shared and secured securely. A platform that is scalable is important, as it gives you the option of closing and opening an online repository to meet transactions or project-based requirements with minimal disruption.
A reputable company must have robust physical security measures that include offsite data backups as well as multiple layers of firewalls and multifactor authentication to stop unauthorized access. A virtual data room can enable administrators to monitor the user and document activity, to determine who is printing, accessing or downloading documents. The capability to add dynamic watermarks on all pages of printed or viewed documents further increases the security of sensitive information.
VDRs are typically used for M&A due-diligence, however they can be used in any situation that requires high levels of privacy and security. Private equity funds and companies, for instance, can safely share details about portfolios and tax information with potential investors using the VDR. Moreover, a virtual data room can facilitate contract review with features like auto-redaction and document management to ensure that PII is not disclosed.