Virtual data rooms are places where companies can store and distribute privileged documents to a select group of third parties. This minimizes the risk of sensitive business information being disclosed to unauthorized individuals. Due diligence was previously conducted in physical rooms. Nowadays, it’s done online in virtual data rooms.
The top VDR providers offer security-first functions which significantly cut down on the costs associated with data breaches and the sharing of information that is not authorized. They include granular access control, multi-factor authentication and session timeouts. They also offer security restrictions on location, secure spreadsheet viewers as well watermarking and screen-blocking. All of these create a robust digital fortress around the information stored and shared in a VDR, which helps organizations meet regulatory compliance and establish trust with their customers.
However, when choosing a secure data space, it is important to be sure that the service is really suited for the task and does not just permit authorized users to log in and share your files on different platforms. Many’secure’ systems claim to stop this, but what’s really happening is that they do not – they simply secure your files on the server and then send them to your browser.
To do this it is based on the fact that your browser comes with an SSL certificate, and that your browser is configured to only accept certificates from an authentic source. This does not mean your VDR cannot be hacked. However, it does ensure hackers are only able to access your encrypted files and not your temporary ones.
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