A business that is entering a new phase of development may need to share private information with other parties. M&A deals are among the most popular, but they are not the only occasions when companies have to divulge critical information to third parties. In many instances regulators, consultants accounting professionals, compliance auditors and accountants must review confidential documents. Virtual data rooms make it possible to do this in a secure manner.
When selecting a VDR to safeguard your personal information and privacy make sure you choose one with strong security features. For instance, the most secure ones use 256-bit encryption at rest and while in transit and, even if hackers succeed in accessing files, they are unable to read them. They also permit administrators to control document level permissions and set expiration dates for access. They can also monitor user activity with granular details like IP address, date and the time of logins.
In addition to a secure environment, a good VDR will include features to enable collaboration with third-party companies. These include a Q&A module that allows users to pose questions in a systematic manner instead of using insecure communication channels. It will also be able to limit printing and downloading documents to ensure data security.
Another feature worth considering is two-factor authentication, which can help stop unauthorized access. Examine if a VDR allows you to limit access based on folders, group roles and document levels. A reliable VDR will have an annotation tool that allows you to create notes on files and they are not visible to anyone else.