Virtual data rooms are helpful for managing legal documents, capital raising and risk management for regulatory compliance. Due diligence is the most commonly used application of data room technology. The ability to create a secure online platform that is accessible by all parties allows for improved communication and collaboration.
Contrary to traditional repositories of files, VDRs are different from standard repositories. VDR provides the tools to define roles and give access to specific users. This adds another layer of security that standard file sharing tools don’t have. Premium VDR solutions typically come with a 24/7 technical support team who can help with any issues or give suggestions on how to optimize the effectiveness of the tool.
VDR features can safeguard sensitive information by encrypting it both in transit and in rest. Granular user permissions are also available, as is remote shred and custom watermarking. Administrators can monitor activity and document downloading and viewing statistics, to identify any suspicious or illegal activity.
The ability to upload large volumes of files is another feature in the data room that is useful for M&A as is the possibility to create a customised project interface and apply the logo of the company or NDA. Document naming conventions can be set in addition to categorizing indexing, ordering, or document tags. Notification preferences and two-factor authentication (if required) can be set. Redaction tools provide data room users the ability to reliably and selectively remove sensitive documents.
