A secure virtual data room is an online storage space where confidential business documents can be shared and examined. A VDR allows businesses to conduct M&A contract acquisition, procure contracts and perform due diligence without exposing sensitive data to the wrong individuals.

A top-tier VDR should include the following security measures:

It is possible to secure documents both during transit and when the document is at rest. This prevents unauthorized users from gaining access to your data even if they possess your password. Multi-factor authentication requires a second way to verify the identity of a user before they can access data. Activity monitoring to identify unauthorised logins and stop them from happening in the future.

Granular document permissions for documents, and restrictions settings to prevent unauthorized sharing and downloads of documents. These features minimize the risk of data leakage and allow administrators to track each user’s activities within the project. Key management system that generates keys, distributes them and stores the encryption keys in a secure manner. A rigorous auditing of conformance to industry standards, including ISO 27001 and SOC 2. GDPR, FINRA, and ISO 27001.

Selecting the best VDR to meet your needs will depend on the type of information you’ll upload and how many users will have access it. If you’re keeping sensitive data, choose one that offers a high-level of security, as well as many useful features that will support your project. For instance, if hosting a project that involves external parties, consider using a VDR that can support document watermarks to stop printing and sharing without authorization.

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