Create an Article›User Guide›

How to Check if a Data Room is Trustworthy

Sep 19, 2022

iCrowdMarketing powered by iCrowdNewswire

Virtual Data Rooms are a product of combining elements of web content and document management systems. It is the storage (archive) of certain confidential corporate files in electronic form and with a clear structure.


Attracting investment is a 24/7 job. Consequently, the better you prepare in advance, the less stressful and complicated the process will be. Organizing a virtual boardroom is one of the key steps in this preparation.


A data room is a file storage and sharing service where you will collect all your documents and reports and can easily share them with investors.



Virtual Boardroom Features


Users have the following requirements for modern virtual board software:




  • Ease of uploading files into the system and sorting them into folders;

  • Clear functionality for downloading documents and their viewing in the system;

  • Creation of joint working areas and the assignment of differently graded roles for the participants;

  • Differentiation of access rights to the documents and limitation of several actions with the files (for example, prohibition of printing or downloading from the space);

  • The ability to share data with colleagues or counterparties through generated links with various restrictions (e.g. time limits for link validity);

  • User-friendly interface.


Classic VDRs offer a standard set of tools such as document browsing, downloading, sending to print, sharing, etc. File protection within virtual data rooms is done by delimiting user rights, managing document lifetimes, and logging events. This reliable online guide will help you to consider the most important factors before choosing among many software providers.



How to Check the VDR’s Reliability?


If you want to choose a reliable board portal, you should check its rating to get an idea of the quality of its services. It is based on several factors, which include security features, ease of use, cost of customer support, etc. A high rating means that the data room offers high privacy and security features as well as a plan with good technical assistance. The more features a data room has, the better.


A trustworthy VDR provider will display the pricing scheme, allowable data usage, secure online board meeting, protection standards, and other relevant features.


Data room security features should be an important factor, as the safety of sensitive information is of utmost importance. For those dealing with monetary or organizational information, data security is crucial. Some VDR vendors offer better options than others, so it is important to look at all reviews to ensure the best possible experience. Data rooms are often the best option for protecting sensitive business information and are the best paperless meeting solution. However, like any additional services, they have their pros and cons.


Specialized Virtual Data Room features are designed to reduce the risk of human error, allowing the user to ensure that the right third parties can view the documents at the allowed time. Various security measures can be configured at the discretion of the administrator, including:




  • Print/download disabling;

  • Dynamic watermarks;

  • Document expiry.


With one in two companies experiencing confidential information leaks as a result of cyber-attacks or malicious insider activity, it is critical to take measures to protect your organization in advance. One such measure could be the use of cloud storage or virtual data rooms:




  • You need to protect the cloud storage itself. Cloud infrastructure security is as much about securing the perimeter as it is about securing the communications channels and properly managing identity and access to cloud resources.

  • You need to protect the very files that reside on virtual storage and cloud environments. Consideration should be given not only to the normal functionality of delegating viewing, editing, or control of the document to a specific employee or external counterparty but also to the protection of the file itself.

  • You need to protect the document and its contents. It is important to bear in mind that DLP solutions will not help when it comes to phone photography - when, for example, an intruder simply uses his smartphone to compromise a confidential document.


Using a virtual data room is an effective tool for storing and sharing copies with internal and external agents. Folder creation, differentiation of access rights, and other functional features of VDR allow for a comfortable collaborative workflow. However, both the board management software and the files contained in it need protection, which can only be ensured comprehensively by using a secure VDR space together with invisible document marking. Implementation of such a solution in a company will have a preventive effect and help identify the source in case of information leakage.



What to Consider when Selecting a Virtual Data Room?


The ideal data room will be the one that meets the needs of your business. However, it is vital to look for the following things:




  1. How secure is the VDR? Does it meet security standards? Does it protect your business data with 256-bit encryption? Consider other protection features such as watermarks, audit logs, two-factor authentication, document download or print restrictions, etc.

  2. Is it easy to use? Always look for a VDR with a user-friendly interface.

  3. How strong is the customer support?

  4. Does the service provider provide a free trial?

  5. Does it integrate easily with common operating systems?


Conclusions


In mergers and acquisitions, a data room is created as part of a central data repository for companies or divisions that are being acquired or sold. It allows stakeholders to view business-related information in a controlled environment where confidentiality can be maintained.


In a world with numerical dependence, wherever information has an enormous amount of value, the necessity to save the board portal software in a secure location, and on a lasting owner, is of first importance. Virtual rooms have almost the same safety level; as high-level economical organizations including banks. Using such rooms, you can be secure so your private data far do not appear affected by so man-made disasters, fires, or floods.