Secure virtual data rooms have become the norm for sharing documents in the business. They allow companies to share sensitive documents to external parties without fear of an attack on data or the loss of important information. A secure VDR can be an invaluable tool, especially in the M&A context, where multiple parties will have to look over important documents.
In many instances an effective and secure VDR is required to lower the chance of data breaches that could be costly. Data breaches can result in serious reputational and financial implications for both businesses.
A secure data room is an archive of documents that many users can access simultaneously. The platform offers secure, centralized storage and distribution of documents that is used during due diligence in M&A transactions and for other business-related reasons.
One of the most frequently-asked questions regarding secure virtual datarooms is whether or not they block authorized users from sharing their files with non-authorized individuals. Some vendors claim that their systems can prevent this by expanding the login process with 2FA, or by adding watermarks to downloaded PDF files. These methods aren’t completely secure and can be easily beaten.
For example the healthcare and life science industry has seen an increase in confidential documents, including clinical findings and patient information. Having such critical information accessible to a multitude of untrusted parties could result in competition espionage or regulatory issues as well as costly legal actions. A secure data room can help keep this from happening by providing features like remote data control, secure messaging and an interactive tool for Q&A.