In the past companies took extreme measures to keep their most sensitive files secret. One misplaced file could mean the loss of opportunities or a costly lawsuit. In the digital age, companies can safeguard sensitive data by saving them and sharing them with a secure virtual data room.
Virtual data rooms are software-based platforms that facilitate document sharing in critical business transactions, like M&A fundraising, IPOs and due diligence. They are a more efficient and effective method of sharing and exchanging documents than email and traditional cloud storage solutions.
Security is the primary benefit of VDRs against other cloud storage options. The most secure virtual data rooms are equipped with several layers of high-end encryption technologies and access control methods which make them a solid digital defender for your sensitive information. They also provide granular permissions for view-only mode, view-only mode and screenshot blocking in order to prevent unauthorised downloads and access. Furthermore, many VDRs have compliance reporting tools that help strengthen your position in negotiations and deal closings while demonstrating compliance with the regulatory requirements.
For instance an organization in the life sciences may require sharing confidential patient records or research results with a variety of parties. A VDR allows for efficient collaboration and protect all parties involved while keeping documents organized in a simple to navigate organization with standard file names.
Similar to oil and gas companies are required to work with other companies on a project, but must to ensure strict data security in order to comply with. A VDR with a built-in document viewer, multiple layer of data encryption, 24-hour backup and scanning for viruses, data center redundancy, and security certifications can reduce M&A risks, accelerate deals, and boost productivity.
