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Secure virtual data rooms have become the norm for sharing documents for business. They allow companies to easily communicate sensitive information to external parties without the risk of a data breach or losing important information. A secure VDR can be a valuable tool, especially in the M&A context in which multiple parties have to look over important documents.
In reality, it’s now a requirement that is non-negotiable in many instances to implement a reliable secure VDR solution to limit the risks of costly data breaches and unauthorised access. Data breaches can result in serious negative consequences for the reputation and finances of both businesses.
A secure data room is an online repository of documents that multiple users require to access at the same time. The platform is secure and provides centralized storage and distribution of documents that is utilized during due diligence in M&A transactions, as well as for other business purposes.
One of the most commonly asked concerns with secure virtual data rooms is if they stop authorized users from sharing downloaded documents with other non-authorized parties. Some vendors claim that their solutions prevent this by extending login using 2FA, or by adding watermarks to downloaded PDF files. However, the truth is these methods are not 100% secure and can be thwarted with ease.
The life sciences and healthcare industry, for instance has increased the volume of confidential documents. This includes clinical findings and patient information. This can lead to espionage, legal issues, and costly actions. A secure data room can help keep this from happening by providing features like remote data control as well as secure messaging, and a Q&A tool.
