Companies often have to share sensitive information with external third parties, including potential partners or investors. Data room security is vital to stop unauthorized access and disclosure of sensitive information. The right virtual dataroom software can protect your company’s confidential information by providing several layers of security, including encryption, two-factor authentication, watermarking, and more granular permission settings.
When choosing a virtual dataroom make sure that it comes with an efficient system for managing documents. It should allow for a logical document organization, with categories such as “Financial Documents,” or folders with subfolders like “Balance Sheets,” “Income Statements,” and “Tax Records.” It also should offer an option to search for files, which can aid users in finding important files quickly. Many data rooms allow drag-and-drop uploading of files to improve efficiency.
You should also consider a dataroom that lets you customize the logo and login page, and offers single sign-on (SSO). This feature can help reduce security breaches because it eliminates the need for multiple login credentials. It also allows you to keep your compliance with regulatory standards like GDPR, HIPAA, and SOC 2.
To ensure security, you can give permissions to users or groups depending on their roles. You should regularly audit and update permissions of users to keep up with changes in personnel and evolving project requirements. Additionally, you should pick a VDR that comes with features like watermarking or digital rights management to restrict unauthorized print, copy and sharing of files.