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How Virtual Data Rooms Enable More Secure Corporate File Sharing

In the digital business world, companies constantly share confidential information over the internet, often using email or file sharing platforms that aren’t known for being especially secure. In response, many companies are transitioning to virtual data rooms (VDRs) to keep documents safe from prying eyes when sharing.

You can safely simplify due diligence situations, collaborate on projects, send clients work and update financial information with a VDR. But before you consider the switch for your own business, you need to know what a virtual data room really is. Simply put, a VDR is an online environment created for corporations to store and share files with external stakeholders like prospective buyers or financial reporting service providers.

VDRs are more secure than most file sharing solutions, and they also support more versatile and powerful access governance controls, which makes them perfect for those situations where you need to allow others to review sensitive information from locations other than your office.

Continue reading this post to learn how virtual data rooms enable more secure file sharing for businesses.

Powerful and Secure Due Diligence in the Cloud

Secure virtual data rooms can render due diligence easier for businesses. Due diligence refers to the background double checking process that businesses undergo before signing off on agreements, mergers or contracts.

It is a crucial operational task for all companies that work with clients and/or other parties. The process generally requires a large amount of sensitive information and time to review the data securely. Fortunately, virtual data rooms offer highly secure yet convenient storage solutions for due diligence documents. You can create unique data naming conventions for your files and categorize with use case-specific folders.

Authorized personnel from both parties can easily access, organize and update files. Keep this in mind as you consider using a VDR for corporate file sharing.

Multi-Layered Data Encryption

Moreover, the best virtual data rooms are equipped with multi-layered data encryption, which allows you to use just one cipher text and provide each user with their own key. The keys then indicate how much information each user can access.

This limits the amount of data each user can view, share or download, which strengthens security. What’s more, the top platforms store encryption keys and key vaults separately from the sensitive data. When components are stored in different locations, unauthorized users have a harder time putting all the pieces together.

Therefore, a multi-layered data encryption VDR can keep your business documents safe while sharing corporate files.

Audit Logs to Track All User Activity

The best virtual data room software products offer complete audit logs, for the most accurate tracking possible. These audit logs allow you to monitor all document activity. You can view who has made changes to files as well as who last accessed them.

Moreover, you can also see how long a user spent viewing a document. You can even identify whether or not other users gained file access when a document was opened. Unlike other types of file sharing platforms, virtual data rooms make it easy to discover any unusual activity quickly.

As long as you consistently review your audit logs, you can identify unauthorized actions as soon as they occur.

Advanced Access Security Verification

On top of that, virtual data rooms offer advanced management tools. In order to share a file with a client or with someone interested in possibly buying you out, you need to grant them access. However, you do not want to allow anonymous outsiders to access the information as well.

With a virtual data room, you can manage permissions for various devices, using two-factor authentication and IP location. Using these management functions, you can grant or deny access to users based on several criteria. For instance, you can require that users verify their phone number or work from specific device and location. This way, they can only open, share or even edit files after meeting these criteria.

Take advantage of these virtual data room management tools to provide secure accessibility.

Advanced Digital Watermarking Solutions

Virtual data rooms enable secure corporate file sharing through digital watermarking. This practice involves using embedded markers on your downloaded or printed information. These markers show ownership over your documents, so you can prevent your work from being passed off as someone else’s.

Moreover, the markers act as tracking mechanisms on your files. Apply these markers to a variety of materials ranging from text to photos. You can choose between visible and invisible watermarking for your SMB operations.

Consider using invisible watermarking to test employees’, clients’ and partners’ trustworthiness. Or, use a visible digital watermark to emphasize confidentiality. In both cases, VDR digital watermarking solutions help protect against data leaks.

Final Thoughts

To share corporate documents and files securely, use a virtual data room with your prospective clients and partners.

The best platforms offer audit logs so you can effectively track user activity. They also provide powerful and secure due diligence thanks to cloud technology. Additionally, multi-layer data encryption prevents unauthorized users from hacking into confidential documents. Manage accessibility easily with the best VDRs as well. Finally, top solutions come equipped with digital watermarking tools that allow you to track downloaded or printed information efficiently.

Using these key functions, virtual data rooms make corporate file sharing for due diligence a more secure process.

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