When it comes to the protection of your data it is impossible to compromise. A single cyberattack could cause huge losses to Intellectual Property and countless dollars. Virtual data rooms combine multiple layers of security in order to protect sensitive information.
The most frequent use is in the M&A industry, a virtual data room (VDR) is an electronic repository that stores important documents that are used in due diligence or other business transactions. It is designed to simplify document exchange and decrease the risk of disclosure.
During a transaction, sensitive business data must be shared with a variety of parties. This sharing requires a level of privacy that generic file-sharing applications can’t provide. Data rooms come with a variety of security protocols, including encryption of data and digital right management controls. They also have audit trails that allow administrators to view the exact details of who viewed what data.
The Q&A feature of a VDR allows companies to answer questions about sensitive information discreetly in the data room to ensure conversations remain confidential. This is essential to a successful due diligence process in a deal as untrue disclosures could affect the integrity of a deal.
Imagine a VDR equipped with DRM controls as a modern safe equipped with locks and an alarm system. It’s very difficult for a criminal to access a safe but it’s even more difficult to steal the content of a VDR that is secured by file-level DRM control. These safeguards prevent unauthorised third individuals from copying or duplicating your valuable content.