Imagine losing millions in an instant due to a single click – whether accidental or intentional. This can be a reality if your confidential data gets into the wrong hands. In fact, the global average cost of data breaches was estimated at $4.88 million in 2024. How to prevent such damage?
One of the solutions is granular access controls, which allow you to define who can see what in your data storage, production environment, or virtual data room (VDR).
Read this article to understand granular permissions meaning, explore their key features, and discover what to consider when selecting reliable granular user permissions in a VDR.
What are granular permissions?
Granular permissions provide control over access to information and actions within a system. They allow administrators to set very specific rules about what users can see and do based on their roles, the sensitivity of data, and business requirements. Instead of granting broad access, granular permissions help ensure that each user only has the necessary rights to perform their tasks.
For example, in a company’s file-sharing system:
- One employee might be allowed to view a document but not edit it.
- Another might have permission to edit but not delete files.
- A manager might have full access to all files.
This level of control improves security, prevents mistakes, and ensures that people only access what they need.
Types of granular permissions
There are generally five types of granular permission control:
- Role-based access control (RBAC). It limits access based on a person’s job role. For example, a manager can approve expenses, but a regular employee cannot. This helps keep access organized and secure.
- Attribute-based access control (ABAC). Access is determined by different user attributes, such as location, device, or time of access. For example, an employee might only be able to access files from a company computer, not a personal laptop.
- Policy-based access control (PBAC). Access rules are set based on company policies. For example, a finance system might only allow payments above a certain amount to be approved by senior management.
- Discretionary-based access control (DAC). The file or resource owner decides who can gain access to it and what they can do. For example, a project leader can share a document with specific team members.
- Mandatory-based access control (MAC). Access is strictly controlled by a central authority (typically, a system administrator) based on security levels. For example, classified government documents are only available to employees with the right clearance level.
Why are granular permissions important in virtual data rooms?
Short answer — security. Now, let’s get to the broader explanation.
Virtual data rooms are often used for managing complex financial transactions involving lots of sensitive data or confidential documents. Unsurprisingly, users expect a VDR provider to have strong security measures in place to protect their information. And granular access control is one of them.
Here’s why granular control access permissions are important:
- Enhanced security and data protection. Granular permissions ensure that only specific users can access specific files, reducing the risk of data leaks or cyber threats. By restricting actions like viewing, editing, or downloading, businesses can safeguard confidential information. This is essential since 55% of data theft or leak incidents happen due to employee negligence and the surefire way to mitigate such risks is to set a strict role-based access control for each user.
- Strict compliance with regulations. Many industries, such as finance, legal, and healthcare, must follow strict data protection laws like GDPR, HIPAA, and FINRA. Granular permissions help businesses stay compliant by controlling who can access sensitive data and maintaining audit logs for legal proof.
- Risk management and control. By limiting access to critical documents, companies reduce the chances of human error, insider threats, and unauthorized data sharing. If an employee leaves or a project ends, permissions can be adjusted or revoked immediately.
- Custom access levels for different users. Not all users need the same level of access. For example, in an M&A deal, investors can view financial reports but not internal discussions. In healthcare, doctors can access patient records, while administrative staff can only see billing details.
- Better collaboration without compromising security. Teams can work efficiently while ensuring sensitive data remains protected. Granular permissions allow secure sharing with external partners like auditors, lawyers, and consultants without exposing unnecessary information. However, to maximize security, businesses should also invest in user training in VDRs to ensure all stakeholders understand how to manage and navigate permissions effectively.
- Detailed activity tracking. VDRs record every action taken on a document, such as who accessed, edited, or downloaded it. This helps detect unauthorized activity, prevents data misuse, and provides a clear record for audits or investigations.
| 👁️🗨️ Additional resource: Learn more about secure file-sharing for financial services and how virtual data rooms can help with it. |
Key features of granular permissions in VDRs
Only in the US, there were 3,205 data compromise cases affecting 353 million individuals in 2023. This highlights the need for reliable security solutions.
Here’s what you should consider when looking for a virtual data room with granular controls:
- Role-based access control. It allows administrators to assign different access levels based on each user’s role. This ensures that only authorized personnel can view or edit specific documents, preventing unnecessary exposure of sensitive data.
- Document level permissions. With document-level permissions, administrators can control access to individual files. This means they can decide who can view, edit, download, or share each document. It’s especially useful in M&A, legal cases, and financial transactions where confidential data needs strict handling.
- View-only access vs. full control. A virtual data room should provide different levels of access. With view-only access, users can open and read documents but can’t edit, download, or print them. This is useful when sharing confidential reports. On the other hand, full control allows selected users to edit, delete, or share files as needed. This is typically reserved for administrators or key decision-makers.
- Time-limited access. Time-limited access allows businesses to grant temporary permissions for specific users. Once the set time expires, access is automatically revoked. This is especially helpful in managing multiple projects in data rooms or when sharing data with external partners, auditors, or potential investors for a limited period.
- Audit trails. A strong VDR should track all user actions, including file views, edits, downloads, and sharing. Audit trails provide a clear record of who accessed what and when ensuring transparency and security. If any unauthorized activity occurs, administrators can quickly detect and respond to potential risks.
| 👁️🗨️ Additional resource: Get the list of the main data room integration challenges and learn how to address them proactively. |
Choosing the right VDR with granular permissions
When choosing the best virtual data room provider with strong granular access controls, ensure it offers the following:
- Customizable permissions. Choose a VDR that allows you to set specific default permissions for individual users or groups. This includes viewing, editing, downloading, or printing documents.
- Different levels of access rights. Ensure the VDR lets you create different access levels, such as Admin, Viewer, or Editor, so you can control who can do what with your documents.
- User-specific access controls. Opt for a VDR where you can restrict access to specific files or folders for certain users, based on their roles and needs.
- Audit trails. A good VDR should allow you to track who viewed, edited, or downloaded documents. This feature ensures you have full control and visibility over your data.
- Watermarking and download restrictions. For added security, check if the VDR can apply watermarks to documents and block downloads or printing if needed, especially for sensitive information.
- Granular permissions for external users. If sharing documents with external parties, pick a VDR that allows you to control permissions specifically for those users, like limiting file access or setting expiration dates.
- Multifactor authentication (MFA). Ensure the VDR supports multifactor authentication for an extra layer of security, especially when granting access to highly sensitive data.
- Easy permission management. Choose a platform with a simple interface to manage access permissions easily saving time and reducing errors.
- Secure link sharing. Make sure the VDR allows you to share files via secure links that can be set with expiration dates, password protection, and view-only restrictions.
If you don’t know where to start with your VDR search, start with these top five virtual data room providers we recommend after a thorough review of each.
Ideals
- Access controls
- Built-in viewer
- Full-text search
- Auto-indexing
- Customizable branding
- Advanced Q&A
- In-app live chat support 24/7
- 30-second chat response time
Dealroom
- Access controls
- Built-in viewer
- Full-text search
- Auto-indexing
- Customizable branding
- Advanced Q&A
- In-app live chat support 24/7
- 30-second chat response time
Citrix
- Access controls
- Built-in viewer
- Full-text search
- Auto-indexing
- Customizable branding
- Advanced Q&A
- In-app live chat support 24/7
- 30-second chat response time
Box
- Access controls
- Built-in viewer
- Full-text search
- Auto-indexing
- Customizable branding
- Advanced Q&A
- In-app live chat support 24/7
- 30-second chat response time
Intralinks
- Access controls
- Built-in viewer
- Full-text search
- Auto-indexing
- Customizable branding
- Advanced Q&A
- In-app live chat support 24/7
- 30-second chat response time
Key takeaways
- Granular user permissions are a way to control specific user’s access to information and actions within a system.
- There are five main types of granular access controls: role-based, attribute-based, policy-based, discretionary-based, and mandatory-based.
- Granular access controls are especially important in virtual data room environments. They ensure enhanced data protection, strict compliance with regulations, risk management, better collaboration, activity tracking, and customizable access levels for all users.
- The main features of granular permissions in VDRs are roe-based control, document-level permissions, view-only access vs. full control, time-limited access, and audit trails.
