Data rooms blog: Best practices and use cases
| A virtual data room (VDR) is a security-first workspace with dedicated features and workflows for data-intensive business activities such as due diligence, M&A, IPO, restructuring, etc. |
Key data room terms
- Dynamic watermarking. Adds digital watermarks to documents within the virtual data room, helping to deter unauthorized sharing or distribution of confidential files.
- Two-factor authentication (2FA). This authentication security feature requires users to provide two different forms of identification before granting access to the virtual data room.
- AES 256-bit encryption. It’s a symmetric 256-bit data cipher, an industry-wide security standard for data at rest and in transit used by most virtual data rooms.
- Information rights management (IRM). This security technology protects confidential data from unauthorized actions, such as viewing, printing, downloading, and editing.
- Granular access permissions. This technology allows for granting selected users and user groups leveled data access within the VDR.
- Q&A. This technology enables timely management of questions and answers between deal parties in the data room.
- Data index. It’s the data structure that allows users to quickly search, retrieve, and manage information in the VDR system.
- Redaction. This technology allows companies to irreversibly remove sensitive information from a digital file, which is indispensable in quality sell-side due diligence.
- Audit trail. This technology records all activities and events within the data room and generates customizable activity reports.
Key aspects of quality data rooms
- Unmatched security. Quality data rooms ensure businesses have full control of data access and interactions within the system. Leading VDRs ensure protection against all methods of unsolicited file sharing through flexible data access settings.
- Guaranteed compliance. Leading VDRs comply with ISO 27001, CCPA, HIPAA, HITRUST, GDPR, and other data security and privacy regulations. Working in virtual data rooms allows businesses to comply with said regulations while managing confidential data.
- Easy data management. VDRs offer powerful data management features, such as automatic index numbering, bulk actions, full-text search, automatic file conversions, and file comparison mode. They allow businesses to manage large data volumes quickly and efficiently.
- Seamless communication. Data rooms are designed to handle communications within the secure system without using disconnected workspaces and back-and-forth emails.
Exploring data rooms
Our virtual data rooms overview encompasses the following topics:- VDR insights and best practices
- Guides on VDR configuration and security features
- Data room use cases
- Guides on VDRs for various industries
- Reviews and comparisons of VDR solutions
- And more