What Is a Secure Data Room?

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A virtual data room, also known as a VDR is a safe online repository for crucial and sensitive corporate documents. It’s a modern version of a physical room where documents can be kept in hard copy and be viewed during a buying or selling negotiation, but with a whole host of specialised security features to stop unintentional third parties from being able to access.

Many VDR providers make big noise about how secure their servers are by claiming their system is the most secure virtual data room however this is misleading and not fit for purpose. To be truly secure the data room has to ensure that only authorized users can see documents and must also ensure that no unauthorised user has the ability to share login credentials or links to your documents with anyone who is not authorized.

The secret ingredient of real data room security is that it goes far beyond server security and covers the entire procedure of uploading, viewing and downloading files in your data room. This includes creating a hierarchical structure of folders and standardizing document names to aid in keeping track of documents. It also involves specific permissions that limit who can access what. It also needs to include advanced audits and reports to help you discover any potential issues for example, by showing who has viewed what documents.

It is worth noting that most data breaches are triggered by human error, and the majority of them can be avoided by utilizing advanced security features. These should include the latest encryption technology that can scramble documents while they are in storage, as well as a solid multi-factor system to block unauthorised access.

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