Often, businesses need to share sensitive information with third parties such as potential investors or business partners. In this case the security of the data room is crucial to stop the unauthorized access or distribution of sensitive documents. The best virtual data room software will protect your company's confidential data by offering multiple layers of defense, including encryption two-factor authentication, watermarking and granular settings for user permissions.
When selecting a virtual data room, ensure it comes with a user-friendly document management system. It should offer a rational arrangement of documents, such as categories such as "Financial Records" or folders which contain subfolders such as "Balance Sheets", "Income Statements" and "Tax Records". It should also offer the ability to search to help users find important documents quickly. For added efficiency, many data rooms offer a drag-and-drop upload features that make it easy to import files from a variety of sources.
Moreover, you should look for an online data storage space that allows you to create a custom logo and login page, and provides single sign on (SSO) integration. This feature helps reduce security breaches because it eliminates the need for multiple login credentials. It also helps you keep your compliance with regulatory standards such as GDPR, HIPAA, and SOC 2.
To maintain security, you may grant permissions to users or groups according to their roles. It is important to review and change permissions for users frequently to ensure they are aligned with any changes to project and personnel. You should also choose a VDR with features like watermarking and digital rights management to stop unauthorized printing, copying, and sharing.