You can’t afford to make mistakes when it comes to safeguarding your data. A single cyberattack could result in a huge loss of intellectual property and millions of dollars. Virtual data rooms use multiple layers of security to protect sensitive data.
Virtual data rooms (VDRs) are commonly used in M&A transactions. They are electronic repositories for important documents that can be utilized during due diligence or other business transactions. It is designed to facilitate document exchange and decrease the risk of disclosure.
During a deal, sensitive business information needs to be shared with various parties. This sharing demands a level of privacy that common file sharing applications cannot provide. Data rooms come with various security protocols, such as encryption of data and digital rights management controls. They also provide audit trails that allow administrators to trace who has looked at what data.
A VDR’s Q&A feature also allows businesses to respond to questions about sensitive information discreetly within the data room to ensure conversations stay contained. This is essential for a successful due diligence process as any disclosure that is not authorized can undermine the integrity of a deal.
Imagine a VDR with DRM controls as a modern safe complete with locks and alarm systems. It’s difficult for criminals to access a safe and even more difficult to take the contents of a VDR that is secured by DRM controls at the file level. These controls block unauthorized parties from copying or duplicating your valuable content.