A virtual dataroom is a secure storage space where files can be exchanged with multiple partners. This kind of collaboration is commonplace for due diligence in M&A deals as well as partnership and fundraising agreements regulations, internal policies and procedures, as well as other projects. These projects could involve sensitive information which is confidential and vulnerable to hacking.
The best VDR providers provide a wide range of industry-strength security features to ensure the confidential documents you use to complete an important deal or transaction will remain where you want to keep them. These industry-standard features include audit logs and document view history, the ability to grant permissions to users in granular ways, a full set of encryption tools, and other tools to guard sensitive information from unauthorized users.
Another feature located in the most reliable data rooms is redaction tools. These tools allow you to effectively and selectively eliminate any sensitive information within the document. This helps to prevent leaks that occur when an email is using a virtual data room for deal room management accidentally sent to an incorrect recipient or when someone is using their personal information to conduct business.
The top virtual data room providers also have features that can reduce human error. For example the software ‘View As allows you to observe what a prospective viewer will see when they visit your data room. This can be a helpful security feature when working with partners who are not familiar with your business process.