Security Features of Leading Virtual Data Rooms

Security of confidential information like documents such as financial statements, agreements, and restructuring is a critical consideration in business transactions, including initial public offerings, M&A, project management restructuring, and many more. Generic file-sharing software can be convenient but they don’t come with the capabilities needed to reliably protect data during these transactions. Virtual data rooms can be a great way to manage sensitive documents in these circumstances and protect intellectual property.

The best virtual data rooms offers advanced security features to prevent unauthorized access. These include 256 bit encryption at rest and during transportation, firewalls, and virus protection. Some providers also employ multiple servers with different locations to ensure that data is always available.

Physical security is another important aspect of a secure VDR. The best data centers are world-class facilities that have various levels and types fire protection. They also offer secure remote access with two-factor authentication. Some vendors even allow you to specify a specific data center location aligned with your security policies.

Data room security features include complex passwords requirements for change and expiration and timeouts in case of inactivity and others. Some virtual datarooms permit you to make certain sections blacked out of a document to ensure that only the most important information is revealed. You can also add dynamic watermarks to documents that show who viewed and printed the document. These are particularly helpful in situations where someone might have surreptitiously photographed or printed your document.