Since their introduction over a decade ago for a long time, secure virtual data rooms have become the standard in business document sharing. They allow companies to easily share sensitive documents with other parties without putting themselves at risk of a loss or breach. A secure VDR can be a valuable tool particularly in the M&A context https://joindataroom.com/ideals-or-venue-which-virtual-data-room-suits-your-investment-banking-deals/ where multiple parties need to review important documents.
In actual fact, it’s now a requirement that is non-negotiable in many cases to install a reliable secure VDR solution to mitigate the risks of costly data breaches and unauthorized access. Data breaches can have devastating reputational and financial consequences for both companies.
A secure data room is an online repository for documents that multiple users require to access simultaneously. The platform provides secure, centralized document storage and distribution that is used during due diligence in M&A transactions and for other business purposes.
One of the most commonly asked questions regarding secure virtual data rooms is whether they prohibit authorized users from sharing their downloaded files with unauthorized individuals. Some vendors claim their systems can prevent this by expanding the login process with 2FA, or by putting watermarks on downloaded PDF files. These methods aren’t foolproof, and can be easily beaten.
For example the healthcare and life science industry has seen an increase in confidential documents, including clinical discoveries and patient information. This could result in espionage, regulatory issues and expensive legal actions. A secure data room could help to prevent this from happening by offering features like remote control of data, secure messaging and a Q&A tool.