When sharing sensitive information in the course of due diligence or any other business transaction, the security of the data room is a major factor to take into. Rather than sending files through email, which is typically not secure enough to protect privileged documents, the use of a virtual data room could aid companies in managing access and accelerate the deal.
There are a variety of ways to improve the security of your servers and other equipment within the data center. There are biometric scanners, the 12′ chain link fence with razor-wire and a security guard on duty at the front of the building. But, these types of security measures are costly and may not be practical for smaller companies.
To avoid costly errors and to ensure security, administrators should be careful to examine the access level and permissions of each user before inviting them to the data room. Verify that the proper permissions are assigned to every individual and group and also consider enabling electronic signatures to stop users from altering or copying sensitive documents from the VDR.
It’s also a good idea to enable audit logs, SSO integration, two-factor authentication and granular permissions. These features reduce the chance of human error and allow admins monitor activities to find potential leaks and misuse of the VDR.
It’s also important to make sure that the data you keep in your data accessing and exchanging files in a secure data room storage space is protected by encryption at rest and while in transit. This is crucial for M&A due diligence, since sensitive data could end up in the wrong hands through leaks.