When important decisions have to be taken, such as a merger, acquisition or capital raising, there is often a need for external parties to review the company’s documents. This can involve combing through tens of thousands of confidential documents. To allow this to happen without risking an information breach and causing an unconformity, companies must use a virtual data room.

Secure data rooms are often called VDRs. They allow users to access and view sensitive data online. A VDR provides top-of-the-line security and encryption to ensure transactions are secure.

A secure dataroom facilitates efficient collaboration because it lets multiple participants to collaborate on projects at the same time. It try this out also simplifies processes such as Q&A and document versioning, which makes due diligence a quicker and less complicated process.

However, the majority of’secure’ data rooms rely on an outdated model of passwords and logins to safeguard documents. Any system that does not stop authorized users from sharing their login credentials, and consequently your documents, is not appropriate for the task. These systems typically make bold claims about their security, using phrases such as’most secure data rooms and ‘highest levels of security’, etc. This is marketing jargon.

A secure data room employs an ISO 27001 certified system that provides granular access rights dynamic watermarking, two-factor authentication and more to protect against breaches of documents in real-time. In addition, it guarantees every user’s activity is recorded and recorded for auditing purposes. This is the only way to ensure that your documents are secure when shared with third-party users.