Connect with us

Tech

Guardians of Your Data: How Virtual Data Rooms Keep Your Information Safe

Published

on

Virtual Data Rooms

As reliance on digital communication and data transmission gets higher in the business landscape, the need for better information security setup gets clearer.

This demand from commercial bodies created massive awareness about brands’ need to protect sensitive information. 

The virtual data room (VDR) came on board in that regard as an important tool for protecting data, allowing safe storage and controlled access to sensitive materials.

What are Virtual Data Rooms?

Virtual data rooms are online storage portals on which businesses can store, manage, and share their sensitive business data with relevant individuals.

The information security technology popularized by the data room solution was developed to smoothen due diligence exercises during mergers and acquisitions. 

This was further confirmed by an industry leader, Gilbert Waters, Co-founder and Marketing Specialist, who said: “VDRs have become the chief solution for secure document sharing in M&A and for complex transactions in other industries”.

The VDRs have come to be used in several industries including legal, pharmaceutical, and financial industries, among others.

The digital data room provides a controlled environment, safe enough to share documents with confidence that only authorized individuals will have access to it.

Key VDR Features To Ensure Data Security

With a special focus on security in this article, we will be shedding light on the features of the data room which made it a solid option for data security in the business world.

  • Access control: One of the chief features of data rooms is personalized access control, which means that the administrator can assign different individuals diverse levels of access depending on the actions they are expected to take and the role they play in a particular task. This feature ensures that each user consumes the data allocated to him by the administrator.
  • Encryption: This is another feature of VDRs that caters to information security and prevents random access by unauthorized individuals. There are different types of encryption, as it concerns VDR data security. They include:
    • Data in transit encryption: In this case, online security protocols try to work against data getting intercepted during transmission. Data in transit encryption sets in data is being passed from a user to a data room server. 
    • Data at rest encryption: This protocol protects pieces of data that are not in use at any point in time or data at rest. It is usually done using unique encryption keys which are stored in separate systems to avoid unnecessary access to them.
    • End-to-end encryption: Some Virtual data room providers arm their software with this encryption pattern. In the case of VDRs, End-to-end encryption means that the information to be passed is already encrypted at the sender’s device before being uploaded on the VDR. The shiny side of this protocol is that users are the only ones who can access the data locked with this pattern.  WhatsApp users may be familiar with this term, as it sits at the top of every fresh chat with a WhatsApp contact. 
  • Document watermarking: Data rooms usually use watermarks to overlay sensitive documents. This process involves using visible or invisible markers on it. Watermarking makes it easy to point out the source of a leaked document if at any point it falls into the hands of unauthorized individuals.
  • Document tracking: This security feature of VDRs allows administrators to know who accessed documents, with advanced details such as when they disc for how long and in some cases, which pages they accessed.
  • Audit trails: This feature means that every action taken on VDRs is recorded for possible future reference. Actions to be recorded include the following activities: document uploads, downloads, edits, and access, among others. Audit trails come in handy when a security breach occurs as it provides insight into what happened and a comprehensive detail of what happened.

These security features make up some of the roadblocks encountered by unauthorized bodies when they intentionally or unintentionally try to make contact with confidential information on a VDR.

How Virtual Data Rooms Ensure Confidentiality

The integrity of data on VDRs is maintained by the following measures:

  • Non-disclosure agreements (NDAs): Before having access to a VDR, users are required to sign non-disclosure agreements or confidentiality agreements. This bond ensures that they understand the sensitive nature of the document they are about to access and binds them legally to maintain confidentiality.
  • Time-limited access: The best virtual data room allows administrators to set expiry data for documents and be able to revoke access to a document at any time. This setup ensures that each user on the platform doesn’t have continued access for a very long time, or indefinitely at least. Adding expiry dates can also be utilized as a way to enforce productivity on teammates as they’d be made to meet project deadlines or the document containing the needed information “self-destructs”.
  • Secure collaboration: Collaboration is important in every aspect of business, then imagine how important it will be if features promoting collaboration are missing in a virtual data room for mergers and acquisitions. Features like version control, annotation, and Q&A modules allow users to converse and work better in a secure environment.
  • Restricted printing and downloading: Irrespective of virtual data room pricing, every VDR provides this option of disabling printing and downloading of documents. This feature allows administrators to prevent users from making copies of sensitive data, which can be taken away from a secure environment.

These are options that a VDR affords its users as long as the focus is on information security.

A virtual data room plays a very important role in making sure that data security is maintained in the modern business environment.

This is evident in the security features installed in the software including access controls, encryption patterns, and auditing systems.  

As cyber-attacks continue to thrive as businesses try to gain access to competitor’s data, the dataroom is out to ensure the integrity of data belonging to each business organization stays behind its wall within their access.

Continue Reading

Recent News

Personal Injury Lawyer Personal Injury Lawyer
Law17 hours ago

Finding the Best Personal Injury Lawyer in Lumberton, NC

Personal injury law is designed to protect individuals who have been harmed due to the negligence or wrongful actions of...

WhatsApp Business WhatsApp Business
Business23 hours ago

Running WhatsApp Business with Pro+VPS for Android Emulator

WhatsApp Business is one of the most powerful tool for Business to manage customers communication. Running it can enhance the...

Civil Partnership Visa Civil Partnership Visa
Finance2 days ago

Civil Partnership Visa vs Spouse Visa: Which One is Right for You

Choosing the right visa to join your partner in the UK can be confusing. Two common options are the Civil...

Crypto Crypto
Crypto3 days ago

Staked Crypto – A Step-by-Step Guide for Beginners

Ethereum staking has become an increasingly popular way for cryptocurrency holders to earn passive income through staking rewards. In this...

Ethereum Staking Ethereum Staking
Crypto5 days ago

Maximizing Ethereum Staking Rewards: Tips and Tricks

Are you looking to maximize the potential of your Ethereum holdings? Stake Ethereum using OkayCoin and take advantage of the...

Wedding Wedding
Wedding5 days ago

4 Wedding Services You Can Quickly Check Off Your To-Do List

Organizing a wedding might like arranging a large-scale symphony, in which each element must work together to produce a beautiful...

Luxury Shopping Luxury Shopping
Lifestyle5 days ago

Luxury Shopping in Ibiza: A Guide to the Finest Boutiques

Ibiza is synonymous with lavish lifestyles, sun-soaked beaches, and electrifying nightlife. But beyond the party scene and stunning seascapes, the...

Indian Brides Indian Brides
Fashion1 week ago

Top Trends in Diamond Necklaces for Indian Brides

As Indian brides gear up for their big day, the selection of the perfect diamond necklace is crucial. Diamond necklaces...

Snaptik Snaptik
Entertainment1 week ago

Snaptik: The Ultimate Tool for Watermark-Free TikTok Downloads

Snaptik stands out as the top tool for downloading TikTok videos without watermarks. It fights the issue of videos having...

Bedroom Bedroom
Lifestyle1 week ago

Refresh Your Bedroom: Summer-Inspired Interior Designs

Not only does June signal the midpoint of 2024, but it also signals the arrival of summer. With the changing...