For business processes such as M&A, capital raising, legal matters or restructuring, bankruptcy and other businesses must scrutinize the vast amount of data. This information can include sensitive data that could present the risk of being stolen if was misused. To prevent this the risk, a virtual data room is used to secure share documents and files with the right parties, while keeping compliance.
It’s crucial that your virtual dataroom provide you with the ability to work from anywhere and safely access data. Alongside the latest security features, you’ll want a user interface that’s easy to use by everyone. The best VDRs offer a simple, user-friendly interface that requires little training.
Check for these features when evaluating a virtual data room:
Folder Templates
It is easier to organize your VDR contents by using templates for folders. You can set up an organization template for folders and save time and effort, as you do not need to start from scratch. These templates also help to ensure that all relevant documents are included in the due diligence procedure. You should also choose a vendor that provides the flexibility to upload your files. In the ideal scenario, you will be able of uploading multiple large files at once. This will save you time and effort while preparing for an M&A transaction.
Document Restrictions
A good virtual dataroom should permit you to define different restrictions for each document. These restrictions could vary from restricting access to specific domains or restricting downloads to specific platforms. You can even decide if recipients are permitted to print or modify documents. Some providers provide dynamic watermarks that show the date or code of access.
Security Features
A virtual data room should be secured with 256 bits of AES encryption for both transmission and storage to protect your privacy. Additionally, the VDR should permit administrators to shut down access at a moment’s notice and also be backed up to ensure that your data isn’t lost. A reliable VDR can also detect attempts by non-authorized users to access data. It will track the IP address, device type, and where users login to the system and send email notifications when suspicious activity is detected.
A good VDR will include an Q&A feature that lets administrators efficiently manage questions and answers among participants. This can eliminate redundant steps and save time otherwise spent sending emails.
Before a person can view data in the form of a VDR the user must agree to a confidentiality or non-disclosure agreement. This will guarantee that they are not sharing proprietary or confidential information, and will reinforce the importance privacy and security. A well-designed virtual dataroom also comes with a an extensive set of reports and analytics. This will give administrators the information they need to make informed business decisions.