Virtual Data Room – Protect Confidential Documents

Virtual Data Rooms are a secure and centralized location where authorized users can access and transfer digital files with complete transparency. The heaviest VDR users are in life sciences and technology, but companies across all industries must protect confidential documents. Look into features such as insights into usage of files at the file level, powerful controls, and flexible permission settings when looking at potential VDR vendors to ensure your documents are shared and protected securely. A platform that is scalable is important, as it gives you the option of closing and opening an online repository in order to meet the needs of transactions or projects with minimal disruption.

A reliable company will have strict physical security measures that include backups of data offsite. Multiple layers of firewalls are also recommended to prevent unauthorized entry. Additionally, a virtual information room should enable administrators to observe document and user activities to determine who is using the documents, and when they are being printed, accessed or downloaded. The ability to apply dynamic watermarks to every page of printed or viewed documents further strengthens the protection of sensitive data.

The most popular use-case for a VDR is M&A due diligence, but it can be deployed in any scenario where high levels of privacy and security are required. For example private equity funds and firms can securely share portfolio information and tax information with prospective investors via a VDR. Additionally, a virtual data room can facilitate contract review by incorporating features like automatic redaction and document organization to ensure that PII is not disclosed.