When a company’s lawyers accountants, auditors and lawyers require access to data without possibility of hacking or causing a compliancy violation, they usually opt for a virtual data room (VDR). A VDR created for external parties is designed to let them review confidential documents online without risk.
VDRs are commonly used for M&A due-diligence. Companies that are buying or merging need a secure system to store the relevant documents and investors looking to invest in the future need an easy way to look over it. A dedicated VDR lets the process run smoothly and ensures valuable information is only shared when required. If a transaction fails to close, access to the information can be revoked instantly.
Many VDR vendors provide a variety of tools for managing users to ensure control over the information that users can access. Always ensure that the platform you choose has robust settings for permissions so that you can restrict access to specific types of data. This includes granular details like file names and sizes. You should also pick an option that provides granular auditing, including activity logs. This will give you full transparency of who has access to which files.
If you intend to use your VDR to support critical processes that do not operate from 9-5, then you should choose an organization that offers 24/7 assistance. It’s worthwhile to have experts available to answer questions and address issues.
