Traditionally companies have relied on email to share InfoSec documents with potential buyers. However, this approach puts information at risk due to the fact that it is exposed to compromised inboxes, phishing attacks and compromised inboxes. Data rooms are a better choice because they allow companies to securely and quickly share documents without losing control over their information.
A virtual dataroom is a cloud-based, secure system that lets users to share, store and access documents that are private with the highest level of security. As opposed to personal file sharing and storage tools which are not secure, the VDR provides a lot more security features, including advanced encryption and auditing capabilities, dynamic watermarking, and much more.
In addition, many features are designed to help make the due diligence process more efficient and effective for all parties involved. A Q&A module, for instance, can help you create an organized and structured environment that makes it easier to answer due diligence questions and responses. You can also reduce time by making favorites and browsing frequently visited documents and folders.
A secure messaging tool is another important feature that lets users communicate within the data room. This saves them from having multiple applications open at the same time and increases privacy protection. Two-factor authentication, which requires additional information or codes for logging in to the VDR, can also help in keeping information secure. You can also determine the IP, device, and location the user is logging into from, thus reducing the likelihood of misuse or leaks.