How to Choose a Secure Virtual Data Room
A secure virtual dataroom allows companies to share confidential documents securely with outsiders without having to worry about documents or files being stolen or damaged. It’s a great solution for M&A due diligence, bankruptcy and restructuring real estate transactions, legal matters, and other matters.
Do your research before choosing the VDR service provider. Find out what security features they have available. Certain VDR providers offer a no-cost trial period during which you can try out their service and determine whether it’s a good fit for your needs. You should also consider the cost, the type of files and documents that you will be storing, who has access to the VDR and any other needs it might serve.
Choose A VDR with physical security measures like industry-grade data centers, robust backups, fire protection, offsite storage, and biometric access. You should also ensure that the VDR provider offers a business continuity plan with regular penetration testing and redundancy of data. You should look for a VDR that includes features like audit logs and document activity tracking, single sign-on (SSO), artificial intelligence, and other features which aid in organizing information and retrieval.
Look for the VDR that is SOC2 compliant (SSAE18) and also has redundancy for data centers, as well as backups that are performed daily. Select a VDR that has 2FA as well as the option to require the use of a second authentication or PIN. You should also avoid any VDR that lets users share their login credentials to others in order to defeat the purpose of a secure data room.
