You cannot afford to take shortcuts in the protection of your data. A single cyber attack could cause a major loss of intellectual property, and even a lot of money. Virtual data rooms have multiple layers of protection to protect sensitive information.
Most commonly used in the M&A industry, a virtual room (VDR) is an electronic repository for crucial documents that are used in due diligence or other business transactions. It is designed to ease the process of exchange of documents and reduce risk of disclosure.
In the course of a deal sensitive business information has to be shared with various parties. This sharing requires a level of privacy that file-sharing apps cannot offer. Data rooms are equipped with a variety of security protocols, including encryption of data and digital rights management controls. They also have audit trails that permit administrators to track the exact details my blog of who viewed what data.
The Q&A feature in a VDR lets businesses answer questions without revealing sensitive information within the data room. This guarantees that conversations remain confidential. This is crucial for a effective 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 equipped with locks and an alarm system. It’s not easy for a criminal to break into the safe, but it’s more difficult to steal the contents of a VDR protected with file-level DRM controls. These safeguards prevent unauthorised third parties from copying and duplicating your valuable contents.
