Security of sensitive information like documents, agreements, financial statements and restructuring are crucial in business deals, including initial public offerings, M&A, project management, restructuring, and others. File-sharing services are convenient, but lack the security features required to protect information during these deals. Virtual data rooms are a great method of managing sensitive documents in these situations and also protect intellectual property.
The most secure virtual data rooms come with advanced security features that prevent unauthorised access to critical business data. These include 256-bit encryption at rest and in transit firewalls, as well as virus protection. Some providers also use multiple servers located in different locations to ensure that data is always accessible and backups are kept.
Physical security is another critical feature of a reliable VDR provider. The most secure data centers are world-class and have multiple levels and types of fire protection. They also provide secure remote access that includes two-factor authentication. Some vendors permit you to choose the location of your data center aligned with your security policies.
Data room security features include password complexity the need for change, expiration timeouts for inactivity and more. Some virtual data rooms also allow you to blacken out sections of documents, so only the most critical information is displayed. You can also add dynamic watermarks on documents to indicate who has printed and viewed the document. They are particularly useful in cases where someone might have surreptitiously photographed or printed your document.
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