Virtual Data Room Facts
When lawyers accountants, auditors and lawyers require access to information without the risk of hacking or creating a compliancy violation, they frequently use a virtual data room (VDR). A specifically designed VDR is designed to allow external parties to review confidential documents online in a secure environment without risk.
VDRs are also used extensively in M&A due diligence. Companies who are merging or buying need a secure platform for storing the relevant documentation. Investors looking to invest also require an easy way to review it. A dedicated VDR helps the process go smoothly and ensures valuable information is only released when it is needed. If a deal fails to close, access to the information can be revoked immediately.
Many VDR vendors offer a variety user management tools which allow you to control the information that users view. Always ensure that the platform you select is able to provide robust permission settings, in order to limit access to specific types of files or data and even granular information like file names and sizes. It is also recommended to choose an option that provides granular auditing, including activity logs. This will give you full transparency of who is viewing which files.
In addition, if you plan to make use of your VDR for critical business processes that don’t operate within the 9-5 workday, look for a vendor with 24/7 support. It’s worth it to have a dedicated team to answer questions and concerns.