The due diligence process has always been quite dangerous in preserving the integrity of your sensitive data. When sensitive data becomes available to outsiders, it becomes most vulnerable to compromise. Failure to use robust controls and security features when conducting due diligence can jeopardize the transaction and the company's existence. A virtual data room can protect your data during this complex process, and this article will show you how.
What is a virtual data room for due diligence?
Due diligence is a complex business process that involves auditing highly sensitive data for a merger or acquisition agreement. Such audits are also conducted during the fundraising and investment process so that potential partners and investors can accurately understand whether the deal is worth their time and investment. In the past, confidential data was not allowed to leave the property, so all interested parties had to come directly to the company. Since many business processes are slowly moving into the digital space, conducting online due diligence is nothing new. Thanks to cloud technology, all data can be uploaded to online storage and available from anywhere in the world. However, not all cloud services are suitable for this purpose, as not all provide a sufficient level of security. Virtual data rooms are online spaces created to conduct complex mergers and acquisitions and due diligence processes. These solutions offer all the conditions for an accelerated and improved due diligence process; they are simple, economical, and extremely reliable.
How can VDRs protect your data?
Virtual Data Rooms are designed with today's security requirements in mind. VDR providers test their products by industry and legal requirements, for which they receive security certifications as permission to work with their customers' sensitive information. data room due diligence uses only cutting-edge technology to protect sensitive data:
- 256-bit data encryption
Encryption protects data from leakage during storage and transmission because even if documents have been intercepted, unauthorized users cannot read their contents without a special decryption key.
- Double Authentication
This is an authentication feature that protects login to the space. Unfortunately, in addition to the password, users also need to enter an additional one-time code, which becomes a major hurdle for intruders who hope to get in by simply stealing or cracking the password.
- Full access control
You can control what each user does inside the VDR and provide only the level of access to the data you think you need. You can deny absolutely everything except browsing, even set partial viewing of a document, or make it invisible to certain users. You can allow editing, forwarding, or other necessary actions for people with more responsibilities. You can change permission settings at any time.
Watermarks help keep track of the copyright of the document owner. They record all the actions performed on the document and the user who performed them. If the data was suddenly leaked because of an internal mole, you could easily find out who it was and pleasantly hold the person criminally responsible.
- Remote destruction
Administrators would have full control over their data, even if it were downloaded to someone else's device or forwarded to another person. In addition, you can easily erase VDR data from someone else's device remotely.
- Audit Logs
Allow you to keep track of all activities within the data room. Audit logs give you a detailed report that tells you when you log in and out when you log in and out and more to help you spot suspicious behavior in time.