A data room is a kind of virtual storage service that provides the security of a place to store documents. It also offers a variety of additional features that assist in the due diligence process. These tools include annotations as well as granular access permissions watermarking and activity tracking.
Data rooms are commonly used to share security documents with clients (SOC 2 documents or compliance certificates) to help with due diligence. Sharing the information with other parties before the deal closes is a great way to speed up the due diligence process, and also http://www.datazoning.net/mobile-security-quot-avast-scan-failed-quot-issue reduce the risk.
Traditionally companies have used email to share SOC 2 docs and other documentation. This isn’t only inefficient, but it also causes problems with the control of version. It’s also a security risk with email attacks increasing, which can lead to compromised inboxes, stolen credentials, and phishing exploits.
Many secure file-sharing and storage solutions like Box or Dropbox allow access to documents on any device and at any location. They provide a high level of security, but the majority of people and businesses require more. Important documents used to conduct due diligence and fundraising, or for negotiating deals must be stored and shared with software that has higher levels of security than these personal file-sharing platforms.
The most important thing to inquire about any “secure data room” is whether it blocks authorized users from sharing files with non-authorized individuals. Unfortunately, the answer is almost always no. The majority of secure data rooms do not restrict the number of times that the same user credentials may be used to access the system. Users are able to reuse logins on their devices, or copy and paste URLs into the browser of a friend’s PC.