The problem of security for financial organizations remains one of the most painful topics for any business owner. Digitalization has brought many benefits to businesses: easier access, faster search, and sharing of information, cost savings, but companies also have to deal with security threats. That’s why it’s so important to choose a truly secure way to store and transfer data. Virtual Data Room is an innovative solution that benefits companies in every industry because it provides the best level of security among online storage alternatives.
Virtual Data Room – Detailed Characteristics
Virtual data rooms emerged shortly after the advent of the global network. But it only really gained popularity a couple of years ago and became a great lifeline during pandemics and quarantine. VDR is not just for storing and exchanging documents, but also for conducting complex financial transactions such as due diligence, or mergers and acquisitions.
The primary goal of VDR developers is to provide business owners with a secure place where they can freely store, distribute and share any sensitive documents without the need for external applications.
To do this, data rooms use state-of-the-art security tools that are guaranteed to help protect content from both external threats and cyberattacks, as well as from data leakage from within the company. As the demand for VDRs has evolved, they’ve begun to split into tools with a bias toward different industries in the business, tailored to their unique needs. For example, virtual data rooms for financial institutions have a strong bias toward security functions and document organization functions.
Top Benefits of VDR Security
Data rooms have a layered security system that rivals that of a bank or military organization. It achieves this effect through a combination of useful state-of-the-art technologies, and we discuss them in more detail below:
- Security Certificates
They are proof of the suitability of VDR’s decision to store your sensitive data in its system. All data rooms are tested for security and, depending on their performance, receive different security certifications, the best of which are SOK2 and ISO 27001.
- Data encryption
Encryption is a great solution against unauthorized hacking and data leakage. It encrypts documents for the visibility of unauthorized users, making them unreadable. Encryption occurs during both storage and transmission, and only users with decryption keys will be able to open that document.
- Double Authentication
This function protects the login and prevents hacking or password theft because besides entering the login and password each user is also required to enter a one-time code, which comes by SMS to cell phones.
- Access Control
Administrators themselves set up the access for all existing users in the system. This allows documents to be hidden from unauthorized persons, thus increasing overall data security. VDRs also allow for partial concealment of a document.
- Control of interaction
Also, administrators have the right to control the ability to interact with documents depending on their importance and depending on the permissions of the users. You can prohibit copying, printing, editing, uploading, and forwarding the document
These are placed on the document to protect the copyright of your company. It also ensures that invited users will not share this document with outsiders and also reduces the risk of data leakage.
- Remote destruction
You can block access to documents even if someone is in it at the time, or if the document has been downloaded to a third-party device. You can set deadlines until which a document can be accessed.
- Surveillance features
They are useful not only as part of the transaction, but also allow you to keep the entire situation under control, and identify suspicious behavior, in time to neutralize the threat.