Secure Data Room Options to Count on

The role of digital tools in dealmaking can hardly be overvalued. The numerous researches state that using digital technologies does not only improve the quickness and efficiency of most business procedures, but is an important condition of keeping a competitive position in the market. Among the most advantageous platforms for business is the online data room. Learn which way it can be useful.

Online data room is the innovation that has got the incredible popularity within the last decade. Though initially designed for M&A transactions, the technology quickly became frequently applied in many different industries as well: clinical studies, fundraising, legal practice, real estate, biotech, etc. The key benefits of the solution are its convenience and security: parties have a possibility to work with the virtual data room at any time any moment, from anywhere, and without worrying having no worries about a sensitive data safety.

When it is time to choose the virtual solution for performing deals online, it is most important to learn more about the main characteristics and options it possesses in order to be sure the chosen VDR can surely be useful for your organization – more about data-room. The most in-demand functions to look for in a sophisticated VDR are the following:

Information encryption

Various vendors have different safety-related tools for achieving data protection, but information encryption is among the most common ones. It supposes encoding the information stored in the VDR in order to make the symbols unrecognizable for unauthorized users in the VDR. It is the main anti-hacking action which is a necessary condition for any data room. The variation can only be in the encryption protocol that was used: the most recent is 256-bit SSL, but 128-bit is also very safe.

Watermarking

If encryption is viewed as a protection from illegal accessing, watermarking is a protection from illegal distribution. Electronic bits enclosed to the files store the data about the document`s owners thus the copyright can be easily protected. The digital watermarks might be dynamic and, in this case, they can store the details about the previous accesses to the document.

2-step verification process

The most reliable way to protect the VDR from hackers is to restrict their possibility of even viewing the documents. For this reason, most reliable vendors use two-way logging-in process that happens in two components: entering a user`s password and entering the generated code that was sent right to the user`s mobile.

Performance monitoring and reporting tools

This function does not only give a possibility to see what proceeds in the data room, but gives a feedback regarding the parties` level of interest in the transaction. Monitoring tools used in a definite VDR usually let the target company monitor the actions in the virtual storage and draw conclusions about the most concerned deal members. This data is specifically in-demand in M&A transactions when the result of the whole transaction may be influenced by the well considered final negotiation.

Setting permissions

With a VDR, there can be no possibility for participants to view the inappropriate documents. The system itself checks the work and can make certain files impossible to view for definite users. The important thing that has to be done beforehand is setting the restrictions for the data room users, and the instructions will be carefully followed.

Q&A space

This section has been especially included to ensure online interaction between users. The offered means of interaction does not only help to reduce time, but also increases the security of the discussed information. To make the section truly convenient, Q&A section may be combined with the e-mail notifying system and document linking feature that gives an opportunity to take the files stored in the VDR into the Q&A space.

Full customization

Certain virtual data rooms have standard interface which can`t be customized, the other products suppose slight or great chance of customization. In addition to settings variations set by the users, the organization which possesses a data room can introduce its own interface. To make the data room more recognizable for current and potential clients, some companies use their logotypes and organizational colors.

The indicated features are truly significant for files security and easy management. While the first three ones are specifically intended for arranging the files protection, other four concern the means of using the data to make the deal better controlled and advantageous.

Virtual data room is a solution that can perform a dramatic change in the way of storing data, processing deals, and interacting with partnering organizations. If you have set your sights on improving the quickness and efficiency of your business processes, begin looking for a good virtual solution today and get the advantage tomorrow.

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