You cannot afford to make mistakes when it comes to protecting your data. A single cyber-attack can result in the loss of a significant amount of Intellectual Property and countless dollars. Virtual data rooms employ multiple layers of protection to guard sensitive data.

Most often used in the M&A industry, a virtual data room (VDR) is an electronic repository that stores important documents used during due diligence or other business transactions. It’s designed to make it easier for the exchange of documents and minimize the risk of disclosure.

During a transaction, sensitive business information must be shared with a variety of parties. This sharing needs a degree of security that file sharing apps do not provide. Data rooms come with a range of security protocols like encryption of data and digital right management controls. They also provide audit trails that allow administrators to view the exact details of who viewed what data.

A VDR’s Q&A feature allows businesses to respond to questions about sensitive information discreetly within the data room to ensure conversations are kept private. This is crucial for a successful due diligence process as any disclosure that is not authorized can undermine the integrity of an agreement.

Think of a VDR coupled with DRM controls like a state-of-the-art safe with locks and an alarm system. It’s hard for a criminal access a safe and even more difficult to take the content of a VDR that is protected by file-level DRM control. These controls prevent unauthorized third individuals from copying or duplicating your valuable contents.