Data Rooms are the solution for storing, sharing, and managing confidential documents that are used for business processes or financial transactions. Virtual Data Rooms are accessible online from any place anytime. They do not require physical storage that relies on security measures like locked rooms, surveillance cameras or an attorney to maintain the confidentiality of.

VDRs are often more secure than platforms like Dropbox, Google Drive, and email because they’re specifically geared towards documents that are designed for enterprise use, and have features like multi-factor authentication and granular permission control and data leak prevention techniques. This includes encryption of data at rest as well as features that block accidental or malicious deletions, like the “view as” tool, and dynamic watermarking.

It’s important to remember that even the most secure platform isn’t a panacea, and human error will always occur. That’s why it’s important to select a VDR that has features to reduce the risk of errors like audit trails that track every activity in the VDR as well as an activity log that lets administrators observe when users have accessed and altered sensitive data.

Some VDRs come with advanced artificial intelligence functions that streamline collaboration and file about his management as well as automate routine tasks. This can help speed up the process, organize files and ensure that no documents are duplicated. This is especially beneficial to ensure due diligence during M&A, construction projects, and other situations where large files need to be shared with different parties.