In the modern world, the issue of interaction with foreign partners is exceptionally relevant. Thanks to a virtual data room, many have the opportunity not only to work remotely, which is still quite crucial after the Covid-19 pandemic. In addition, flexibility and mobility for doing business are increased.
Since you have to work with many different documents and confidential data, all information must be safe. This should exclude leakage, theft, and other possibilities of data compromise.
To find out if online data room software is safe, several factors are to consider. We have collected the key ones in the article.
Why Is Virtual Data Room Reliable?
Secure data rooms provide a file-sharing environment where you don’t worry about compromised documents. This is obtained due to the following items:
- Confirmed audit report on compliance with the requirements of the standard;
- Reliable and secure access;
- Secure file sharing;
- Built-in document security features.
Let’s look at each criterion in detail.
Security implies a full guarantee that both parties can quickly and safely perform various data manipulations without any risks. Which includes the entire protection mechanism:
- Physical data protection;
- Reliable infrastructure components;
- Backup in real-time;
- Emergency recovery;
- Multilevel data encryption;
- Multiple server locations.
All energy storage centers are reliably monitored, which contributes to trouble-free operation. That means that a user can never lose connection. But, of course, the same must be with quality hardware.
Electronic data room backup also guarantees that even in a power outage, internet failure, or problems on the personal computer, the data will be saved automatically. In addition, all recent user actions will remain unchanged. And the document can be restored or opened based on current activities.
Remote data centers allow you to store copies of documents. So the data will be resistant to natural disasters or serious breakdowns. Hardly a physical data room can guarantee that.
On top of that, the user will receive not single-level but multi-level data encryption. This significantly improves the security of documents. And finally, multiple processing centers in different locations will increase the likelihood that the data will not be exposed to the physical risks of data loss.
For more excellent connectivity, reliable datarooms with such features should be preferred.
- Selective permission settings. The administrator selectively grants access to documents to a specific user.
- Custom document permissions. The administrator distributes which users can make changes to which.
- Single sign-in. Users will have permanent login details assigned to them for all projects.
- Two-step verification. In addition to the password, you will need to provide a one-time code each time you log in to the system.
- Time and IP address restriction. For better security, online data rooms can even prevent server usage time.
- Saving the entire history of user actions. Internal audits and by-seconds session records keep track of any changes made by the user.
Not always certain data rooms can provide all functions. For a better understanding when choosing, read the characteristics and user reviews.
It is very convenient when the data is on the server, but access to them is limited regarding access level and possible actions. For example, to the same document, someone can edit it, and the other user can only be a reader for the trial function. Even the ability to save the file in a particular format will be limited.
There is also such a feature as a “dynamic watermark.” This means that various actions with the document are tracked up to the user’s data and time of changes. In addition, there is a feature that limits the ability to take pictures or protects against unauthorized scanning.
Choose datarooms with the secure Excel spreadsheet viewer option. Also handy is a function that limits copying a document or prevents it from getting into the browsing history.
There will be a remote option to wipe data from the device if it’s stolen with a remote wipe. The following handy feature would be remote access to the document even after the user has downloaded it.
But this is not the whole list because there are also different certificates with varying degrees of protection.
International Certificates And Standards For VDR Software
Independent certification, compliance with an industry’s best practices, and legal requirements are essential for the safety and security of one’s stored files. Try to choose datarooms with a certificate that seems more reliable to you. They can be divided into primary and advanced and industry-specific certifications.
Here is a list of the main ones. Before choosing, it is better to familiarize yourself with each in more detail.
- AICPA – SOC 1/SSAE 16/ISAE 3402 (former SAS 70);
- AICPA – SOC 2 Type II (former SAS 70 Type II);
- HIPAA;
- United States International Traffic in Arms Regulations (ITAR);
- ISO 9001 / ISO 27001;
- privacy shield;
- General Data Protection Regulations (GDPR).
Advanced and Industry-Specific
Their feature is a higher degree of protection. They are also designed for specific industries.
- DoD CSM Levels 1-5;
- FIPS 140-3;
- FISMA, FedRAMP, and DoD RMF;
- MTCS Level 3;
- PCI DSS Level 1.
Mergers and acquisitions, as well as other processes, require increased security. Let’s take a look at the top recommended online data rooms that guarantee the safety of your data:
- iDeals;
- Intralinks;
- DealRoom.
Here you may find a virtual data room comparison to choose the best provider.
According to experts, iDeals occupies the best position in terms of security. At the same time, no plugins are required to use the application. You may use whatever browser, mobile or desktop.
Another benefit is easy uploads via Drag & Drop. You may easily copy all the necessary information without any risk in no time to your virtual room. Moreover, more than 25 document formats are available for secure viewing, printing, or downloading.
To protect the transmission or storage of data, 256-bit encryption and 2048-bit keys are used, guaranteeing all files’ protection.
With IntraLinks, you may simplify deal document organization, distribution, and storage. Moreover, to see the pros and cons, and may conduct a virtual roadshow. And last but not least, there is a transition seamlessly and securely to due diligence. The main drawback of the data room is the complicated setup process.
The main secure feature for this electronic data room is a lock used for devices and locations, preventing sharing and distributing, unauthorized access, and document revoking regardless of where documents are located. Also, any may comply with legislation by controlling access and use. The user may find that importing and exporting templates slows down some processes.
