Secure Data Room Cases to Foresee

The role of IT helpers in business can hardly be overvalued. Various researches confirm that using IT helpers does not only improve the quickness and strength of major business procedures, but is an important condition of staying competitive in the market. One of the most advantageous solutions for business is the online data room. Learn how it can help your business.

Virtual data room is the recent development that has gained the huge demand within the last ten years. Having been primarily created for M&A transactions, the technology soon got frequently applied in the other industries with the same success: clinical trials, investments, legal practice, real estate, biotech licensing, etc. The main advantages of the technology are its convenience and confidentiality: users have a chance to work with the virtual data room anytime, from anywhere, and without worrying having no worries about the information security.

When it comes to choosing the service for processing deals, it is most advised to learn more about the characteristics and features it has to make sure this data room can certainly bring benefit to the users – more about . The most required features to look for in a sophisticated VDR are the following ones:

Encrypting the data

Various vendors offer various security measures for achieving data safety, but encryption is always among the most traditional ones. It supposes encoding the data placed in the repository in order to make the text unrecognizable for those users who are not authorized in the VDR. It is the most important anti-hack step that is a necessary element for all the virtual data rooms. The difference might only be in the standard of encryption that was used: the latest is 256-bit SSL, but 128-bit is highly secure as well.

Dynamic watermarking

While data encryption is viewed as a protection from unauthorized accessing, using watermarks is a protection from improper data distribution. Electronic bits attached to the documents contain the details about the document`s ownership so the rights can be absolutely protected. These digital watermarks might be dynamic and, in this case, they can collect the information about all the accesses that have taken place.

Two-step authorization process

The best way to save the virtual data room from hackers is to limit their chances of ever gaining access to the documents. To achieve this aim, many trustworthy VDR providers apply 2-way verification process that happens in 2 parts: using a common password and entering the generated code which was sent straightly to the user`s smartphone.

Activity monitoring and reporting

Activity tracking and audit log feature does not only give a possibility to see what exactly happens in the VDR, but also provides the information about the parties` interest in the transaction. Monitoring instruments which are used in a chosen virtual repository mostly let data room owners monitor the activities within the virtual repository and build conclusions about the most active deal members. The received data is especially in-demand in dealmaking when the outcomes of the whole transaction may be influenced by the properly considered final negotiation.

Digital rights management

With a virtual data room, there cannot be any chance for process participants to access the improper documents. The data room itself checks the operations and makes definite documents impossible to view for the chosen users. The only thing that must be done in the beginning is setting the permissions and restrictions for all the participants, and they will be exactly followed.

Questions & Answers module

The indicated module has been intentionally designed for ensuring online-based interaction between users. The offered means of communication does not only allow to reduce time, but also improves the safety of the discussed information. To benefit users even more, Q&A space might be combined with the users` notifying system and document linking feature that offers a possibility to link the certain files to the Q&A space.


Definite online repositories offer basic interface which can`t be corrected, the other suppose partial or full possibility of customization. As well as variations in settings made by the definite users, the company that possesses a virtual data room can introduce its desirable interface. To make the virtual repository more recognizable for current and future clients, some organizations introduce their logotypes and organizational colors.

The listed functions are definitely important for files protection and efficient working. While the first three are necessary for arranging data protection, other four relate to the means of using the information to make the working process more controlled and advantageous.

Virtual repository is a tool that has a potential to perform a significant change in data storing, processing transactions, and building business relationships. If you observe the necessity for improving the quickness and effectiveness of your business processes, start looking for a reliable virtual data room right now and be sure to get the benefits tomorrow.

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