The security of data is of paramount importance for modern businesses, no matter the level of data involvement in their affairs. Each company has large volumes of sensitive information to store and share: from personally identifiable information about employees to such confidential data as financials and contracts.
Considering the rising costs associated with data breaches and the outcomes they can bring to business, modern companies take data security more and more seriously. According to Ernst & Young’s survey, 64% of board directors see cybersecurity as their top priority in 2023.
In this article, we delve into the basics of virtual data rooms (VDRs) as an essential way of secure data sharing and the role of a secure virtual data room in secure data management. Read on!
A data room is a secure repository for data storage and sharing. Usually, data rooms are used for storing highly confidential and sensitive information, such as company financials or contracts. Remarkably, data rooms are used during such complex financial transactions as mergers and acquisitions or initial public offerings.
Data rooms were historically physical buildings where lots of paper documents were stored in file cabinets. Such data rooms are also often called traditional data rooms.
However, with technological development, traditional data rooms turned into virtual data rooms.
Now, there are many virtual data room providers that offer advanced features for secure and efficient data storage and sharing. With virtual data rooms, all the data is stored on the cloud and can be accessed at any time and from anywhere.
Naturally, the variety of the best virtual data room vendors offer different features and come with different virtual data room pricing. Thus, there is a virtual data room for startups or an M&A data room, meaning each of them offers dedicated services that aim to streamline a particular project or deal.
The key role of virtual data room services in secure data management is the security they provide.
Modern virtual data room providers not only ensure streamlined and smooth collaboration on large volumes of sensitive data but also offer a variety of enhanced security measures that enable a high level of data security.
The list of exact measures modern VDR providers take is described further.
Generally, modern reliable virtual data room providers ensure high data security on several levels:
Let’s briefly review what’s offered on each of these levels in more detail.
Document security features ensure that all the files you upload to a virtual data room stay secure and confidential. This is possible due to such features as:
A variety of access security features offered by modern virtual data room providers allow VDR administrators to take full control of who, when, and how can access sensitive data inside a virtual data room. This is possible due to such features as:
Besides the basic security features mentioned above, VDR vendors also provide a variety of additional ones that ensure enhanced security. Below are some examples of such features/services:
Virtual data rooms play an important role when it comes to security of the sensitive data. VDRs are focused on making data storage and sharing online not only streamlined and smooth but also highly secure.
This is possible due to the variety of dedicated features and measures taken by each VDR vendor. Among the most common security features virtual data rooms provide are granular access controls, dynamic watermarking, multi-layered encryption, two-factor authentication, and compliance with different security regulations.
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