A secure data room is an online repository that permits companies to share confidential business documents with external parties in a secured environment. It’s used in various business transactions, including mergers and acquisitions and fundraising, IPOs, legal proceedings and other commercial events in which it is imperative that external parties review confidential documentation without risking the company’s reputation to potential security breaches and causing a compliance issue.
Secure Data Room Features
The best virtual datarooms offer the latest security features that protect your sensitive data from malicious actors. These include features like virus and intrusion prevention, data encryption (at both in and out of transit), firewalls on the network, and more to ensure your data is secure from cyber attacks.
The ability to track and limit access to the data room is among the most important features of a safe dataroom. This is crucial because the majority of data breaches are the result of human error. For instance, clicking on a hyperlink or downloading a file with personal information. A secure data room can stop these types of errors by preventing downloading of documents, and by providing detailed activity reports and alerts.
Another common feature is NDA Gating. This allows companies to issue an invitation to the data room using an unique NDA link which expires after a certain period of time. NDA gating makes it easier for companies to keep their information confidential while still allowing a prospective buyer or investor the opportunity to look over a complete information set and assess the company’s performance.