A data room is a kind of virtual storage solution that gives you secure storage for documents. It also http://www.datazoning.net/board-management-software-implement-the-right-working-strategy provides a number of additional features that help with the due diligence process. These features include annotations tools that allow for granular access, watermarking, and activity tracking.

Data rooms are frequently used to share security documents with clients (SOC 2 documents or compliance certificates) in order to facilitate due diligence. Sharing the information with other parties prior to the deal closes is a great strategy to speed up the due diligence process and reduce the risk.

Email is utilized by companies to share SOC 2 documents as well as other documentation. This is not just inefficient, but also creates problems with revision control. It’s also a security risk with email attacks increasing, leading to compromised inboxes and credentials being stolen, as well as attacks on phishing.

Many secure storage and file sharing solutions like Box or Dropbox offer document availability on any device and at any location. They provide a high degree of security, but most people and businesses need more. Important documents used for due diligence, fundraising or negotiating deals must be stored and shared with software that provides greater levels of security than these personal file-sharing systems.

The most important thing to inquire about a “secure data room” is whether it prevents authorized users from sharing data with non-authorized persons. Unfortunately, the answer is almost always no. The majority of “secure data rooms” don’t even limit how many times the same credentials can be used to access the system. Users are able to reuse logins on their personal devices or copy and paste an URL into the browser of a computer friend’s.