A secure data room is a place where sensitive documents can be kept and shared. These kinds of documents could include confidential financial reports, trade secrets and intellectual property in commercial settings, as private information such as credit card numbers, social security numbers, and private medical records of individual users.
Many data rooms feature features that allow users to mark files and board meeting times folders as favorites or bookmark them, which speed up the process of reviewing large volumes of documents. This can be a huge advantage for those who must review information quickly for due diligence, acquisitions or sales.
Some providers of data rooms claim that their system blocks authorized users sharing documents with parties that are not authorized. However, it’s not that simple. While the encryption of data during transit is crucial but it’s not only the primary factor to consider.
Certain VDRs such as the ones mentioned above encode your documents on the server prior to sending them to your browser in an unprotected temporary file that could be attacked. Users can also forward links to the data room documents even when they’re encrypted.
To ensure that your data room project will be successful and prevent information breaches, you should invest in a virtual data room that is designed with the highest levels of security and comes with all the tools required to complete deals. Kiteworks provides a free demo to let you know the way our platform can assist with your next project. Or learn more about how our software will help streamline M&A due diligence, corporate transactions and capital raising.
