A secure data room is where companies can share confidential documents with selected third parties. This decreases the risk that sensitive information can be seen by people who are not authorized. Data rooms were physically-based spaces that needed strict access control. Today, most due diligence takes place online in virtual data rooms. The top virtual data rooms offer industry-leading security and encryption to safeguard sensitive documents from unauthorized access and theft.
The most important characteristics of an encrypted data room include:
Authentication: A Data Room employs authentication protocols to ensure that only authorized users have access to access sensitive data. This is accomplished with the help of granular user permissions, session timeouts, and location restrictions. Some data rooms also employ password protection screen-only mode, view-only mode, screenshot blocking, and watermarks in order to block unsolicited file sharing.
Backup and recovery Data rooms provide back up and disaster recovery options to protect your documents in the event of data breach or system failure. Some data rooms also offer document versioning, which allows users to restore previous versions of a document.
Privacy: Datarooms support compliance with regulations and laws including the CCPA, HIPAA, Sarbanes-Oxley, and PCI. This is important, as failure to comply with these laws and regulations can result in heavy penalties and legal action.
A secure data room enables you to keep track of which documents are viewed and for the length of time. This allows businesses to be in compliance with privacy laws and regulatory requirements and also shows other stakeholders that your business is serious about protecting your data.