A data room is a storage option for electronic files that allows documents to be stored in a secure environment. It also offers a number of features that aid in the due diligence. These include annotation tools as well as granular access permissions watermarking, and activity tracking.
Data rooms are commonly used to share security documents with clients (SOC 2 docs or compliance certifications) to help with due diligence. This is a great method to speed up the process and decrease risk by sharing the information with third parties before the transaction is completed.
Email is a method utilized by companies to share SOC 2 documents as well as other documentation. This isn’t only inefficient, but it also causes problems with revision control. It’s also a security risk with attacks on email on the rise resulting in compromised inboxes, stolen credentials, and the phishing exploits.
Many secure file-sharing and storage solutions such as Box or Dropbox offer document availability on any device and at any location. While they provide a high degree of security, the majority of companies or individuals need more than this. Documents that are sensitive and used for fundraising or due diligence agreements must be stored in software that has higher levels of protection.
The most important thing to inquire about any “secure data room” is whether it prevents authorized users from sharing data with non-authorized persons. Unfortunately, the answer is generally “no”. The majority of “secure data rooms” do datazoning.net/everything-you-need-to-know-about-pc-matic not limit the number of times the same credentials can be used to access the system. Users are able to reuse logins on their own devices, or copy and paste URLs into the browser of a friend’s PC.