Data Rooms are a method to store and share confidential documents utilized in business processes and financial transactions. Virtual Data Rooms are accessible online from any location at any time. They don’t need physical storage that relies on security measures such as security cameras, locked rooms or an attorney to protect confidentiality.
VDRs can be more secure than other platforms like Dropbox, Google Drive and email, due to the fact that they are specifically designed to support enterprise-grade document management. They come with features like multi-factor authentication, granular permission controls, and also techniques to prevent leaks of data. This includes features that can prevent accidental or malicious deletions of data such as the ‘view-as tool’ and dynamic-watermarking.
Be aware that even the most secure platform isn’t able to completely remove human error. It is important to choose a VDR with features that reduce the chance of errors, like an audit trails that record all activities within the VDR and a log of users that allows administrators to see how users have accessed and modified sensitive data.
In addition, some VDRs also have advanced artificial intelligence features that simplify collaboration and file management by automating the routine tasks. This can help speed up the process and keep files well-organized. It also makes sure that there are no duplicate documents. This is especially beneficial in due diligence when it comes to M&A, construction projects, and other situations where large files must be exchanged with various parties.
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