A virtual data room secure is an online location where large quantities of confidential documents can be shared safely beyond the walls of a business. It is used for M&A due diligence, litigation, bankruptcies, fundraising audits, as well as any other situation where multiple parties are required to review sensitive information.

The best virtual data rooms come with a wide range of security options that ensure that data remains where it is intended to be – in the data room. These features include physical security as well as granular permissions settings for recording document activities.

Data Center Security: The best VDRs use industry-grade data centers equipped with adequate physical security measures including offsite data backups, data redundancy, fire protection and biometric access control. They also have a solid business continuity plan, and go through regular penetration tests.

Document Access Security: The most secure virtual data rooms have specific document permissions that permit administrators to limit access to individual documents as well as folders, specifying viewing only, print and download options. They also allow users to add dynamic watermarks on the pages of documents printed and viewed and set limits on time for access.

Privacy Security: A reputable VDR surpasses or https://6dataroom.com/what-are-the-different-types-of-due-diligence/ meets ISO 27001 compliance and is HIPAA compliant. It provides end-to-end encryption (E2EE) to protect against illegal interceptions of information by hackers and service providers, and to prevent data from being altered or deleted.

In addition, a top-rated VDR is certified for FINRA (Financial Industry Regulatory Authority) and SOC 2 (Service Organization Controls) and ensures that it adheres to the most stringent procedures for handling to protect PII. This prevents costly fines and other legal expenses that can be incurred due to data breaches, as well as the lost revenue that may result from compromised trade secrets or strategic plans.