A data room is a digital storage solution that provides an secure storage space for documents. It also provides a range of features that aid in due diligence. These tools include annotations that allow for granular access, activity tracking, and watermarking.
Data rooms are often used to share security documents with clients (SOC 2 documents or compliance certificates) to help with due diligence. Sharing the information with other parties before the deal is completed is a great method to accelerate the due diligence process and reduce the risk.
Email is employed by companies to share SOC 2 documents and other documents. While this is effective, it is inefficient and causes problems with version control. This is also unsecure, due to the increased number of email attacks resulting in compromised mailboxes, stolen credentials, and phishing attacks.
Many secure storage and file sharing solutions like Box or Dropbox provide access to documents on http://www.datazoning.net/6-important-points-for-virtual-data-room-reviews any device and in any location. While they provide a good level of security most people or businesses require more than this. Important documents used for due diligence negotiation, fundraising or even negotiating deals should be stored and shared through software that has higher levels of security protection than these personal file-sharing systems.
The most important question to inquire about any “secure data room” is whether it restricts authorized users from sharing files with unauthorized people. Unfortunately, the answer is usually “no”. The majority of “secure data rooms” do not restrict the number of times the same user’s credentials can be used to access the system. People can easily re-use logins on their devices or copy and paste URLs into the browser of a friend’s computer.