A data room is a kind of virtual storage solution that provides a secure place to store documents. It also provides a range of features to aid with due diligence. These features include annotation tools and granular permissions, as well as activity tracking and watermarking.
A typical use for a data room is to share security documents (SOC 2 documents as well as compliance certificates,) with clients in order to facilitate the due diligence process. This is a great method to accelerate the process and decrease risk by sharing the information with third parties before the transaction is completed.
Email is employed by companies to share SOC 2 documents and other documentation. While this works, it is inefficient and causes issues with version control. It’s also vulnerable with email attacks increasing, which can lead to compromised mailboxes, stolen credentials and attacks on phishing.
Many secure file-sharing and storage options like Box or Dropbox offer document availability on any device and in any location. They offer a high degree of security, but most people and businesses require more. Documents that are sensitive and are used avast scan failed mobile for fundraising or due diligence deals must be stored in software that has more protection.
The most important question to ask any’secure data room’ is, does it restrict authorized users from sharing documents with non-authorized users? Unfortunately, the answer is usually not. The majority of secure data rooms don’t even limit how many times the same credentials can be used to access the system. Users can use logins on their own devices or copy and paste URLs into the browser on a friend’s PC.