A virtual data room is a space that businesses can keep and share documents that are protected with a select number of third parties which reduces the risk that sensitive business information could be divulged to unauthorised individuals. Traditionally, due diligence was performed in physical rooms, but today, it occurs online in what is known as virtual data rooms (VDRs).

The best VDRs provide security-first features to cut down on the cost of data breaches and illegal sharing. They offer granular control over document access multi-factor authentication, session timeouts, restrictions on location and secure spreadsheet viewers. watermarking, screenshot blockage, and encryption. All of these create a strong digital defense around the data stored and shared in a VDR which allows organizations to achieve compliance with regulatory requirements and establish trust with their customers.

When choosing a secure data room, it is important to make sure that the service is actually fit for purpose and www.joindataroom.com/how-do-i-choose-the-right-vdr-provider-for-me/ does not just permit authorized users to log in and share your data with other platforms. Some “secure” solutions claim that they can stop this. In reality they simply decrypt files on the server, and then transfer them to the browser.

To do this they rely on fact that your browser is equipped with an SSL certificate, and that your browser is configured to accept only certificates issued by a trusted source. It doesn’t mean your VDR is safe from hacking, however it does ensure that hackers are only able to gain access to your encrypted files, not your unencrypted temporary files.