A data room is a virtual storage solution that provides a secure place to store documents. It also comes with a range of other features that aid with the due diligence process. These tools include annotations that allow for granular access, watermarking and activity tracking.
A typical use for data rooms is to share security documents (SOC 2 documents as well as compliance certificates,) with clients to aid in the due diligence process. Sharing this information with other parties before the deal closes is a great method to accelerate the due diligence process and decrease the risk.
Email is a method used by companies to share SOC 2 documents and other documents. While this works it is inefficient and creates issues with version control. This is also unsecure, with the increasing number of emails that are a result of compromised mailboxes, stolen credentials, and phishing attacks.
Many secure file sharing and storage solutions, such as Box and Dropbox provide access to documents on any device or in any location. Although they offer a decent level of security, many people or businesses require more than this. Documents that are sensitive and used to conduct due diligence, fundraising or negotiating deals should be saved and shared with software that offers higher levels of security than click to find out more these personal file-sharing systems.
The most important question to ask in any secure data room’ is does it stop authorized users from sharing documents with non-authorized users? Unfortunately, the answer is almost always no. The majority of “secure data rooms” do not restrict the number of times the same user’s credentials can be used to log into the system. Users can use logins on their devices, or copy and paste links into the browser of a friend’s PC.