When it comes to the protection of your data you can’t afford to make a mistake. A single cyber-attack could lead to a massive loss of Intellectual Property and millions of dollars. Virtual data rooms combine multiple layers of security to protect sensitive information.
Virtual data rooms (VDRs) are primarily used in M&A transactions. They are electronic storage facilities for important documents that can be used during due diligence and other business transactions. It is designed to ease the process of document exchange and reduce risk of disclosure.
During a transaction, sensitive business information needs to be shared with a variety of parties. This sharing demands a certain amount of privacy that file sharing apps do not provide. Data rooms are armed with a variety of security protocols, such as encryption of data and digital rights management controls. They also provide audit trails that allow administrators to see exactly who was able to access what information.
The Q&A feature of a VDR allows businesses to answer questions without revealing sensitive information inside the data room. This guarantees that conversations remain private. This is crucial for a effective due diligence process, as unauthorized disclosure can destroy the integrity of an agreement.
Imagine a VDR equipped with DRM controls as a modern safe equipped with security locks and alarms. It is difficult for criminals to access a safe and even more difficult to take the content of the VDR that is protected by file-level DRM control. These safeguards prevent unauthorised parties from copying or duplicating your valuable content.