In use for a long time secure virtual data rooms have become the norm in business document sharing. They permit companies to share sensitive documents with external entities without fearing a data breach or losing important information. A secure VDR can be a valuable tool especially in the M&A context, where multiple parties will need to scrutinize important documents.
In reality, it’s now a non-negotiable requirement in a lot of cases to use a reliable secure VDR solution to minimize the risks of costly data breaches and unauthorized access. Data breaches can have serious financial and reputational implications for both businesses.
A secure data room is a secure online repository for documents that multiple people need to access at once. The platform is secure and provides centralized document storage and distribution that is used for due diligence in M&A transactions and for other commercial reasons.
One of the most frequently-asked concerns regarding secure virtual datarooms is whether or not they block authorized users from sharing their files with non-authorized third parties. Some vendors claim that their systems can prevent this by expanding login with 2FA, or by putting watermarks on downloaded PDF documents. These methods aren’t completely secure and can be easily defeated.
For example, the healthcare and life science industry has seen an increase in confidential documentation, including clinical findings and patient information. The fact that such information is accessible to a variety of unauthorised parties can result in competition espionage as well as regulatory issues, not to mention expensive legal actions. Secure data rooms help stop this from happening by providing features such as remote data control secure messages and an Q&A feature.