In many cases, companies need to share sensitive data with third parties such as potential investors or business partners. In this case, data room security is essential to block unauthorised access or distribution of sensitive documents. The right virtual dataroom software can protect your company’s confidential data by providing various layers of security such as encryption, two factor authentication, watermarking, and specific permission settings.
When selecting a virtual data room, make sure it comes with a user-friendly document management system. It should provide a clear organization of documents, including categories like “Financial Records” or folders which contain subfolders such as “Balance Sheets”, “Income Statements”, and “Tax Records”. It must also have a search feature to help users find important files quickly. Many data rooms offer drag-and-drop uploading of files to increase efficiency.
In addition, you should look for a data room that is able to incorporate a logo that is custom-designed and a login page and offers single sign on (SSO) integration. This feature can help reduce security breaches by removing the requirement for multiple login credentials. It also allows you to keep your compliance with regulatory standards such as GDPR, HIPAA, and SOC 2.
To ensure security, set permissions that are granular to groups of users or individuals, based on their roles and the responsibilities they have. It is important to review and update permissions for users regularly to align with personnel and project changes. It is also recommended to select a VDR that includes features such as digital rights management and watermarking to restrict printing, copying, and sharing.