What is a Data Room?

A data room is an electronic storage solution that lets documents be stored in a safe environment. It also comes with a number of other features that aid with the due diligence process. These tools include annotations that allow for granular access, activity tracking, and watermarking.

The most common use of a data room is to share security documents (SOC 2 documents or compliance certificates, for example) with clients to support the due diligence process. Sharing the information with other parties prior to the deal is closed is a great way to speed up the due diligence process and reduce the risk.

Traditionally companies have used email to share SOC 2 documents and other documentation. This is not just inefficient, but also creates problems with version control. It’s also unsecure, with attacks on email increasing, leading to compromised inboxes, stolen credentials and attacks on phishing.

Many secure file sharing and storage solutions such as Box and Dropbox provide access to documents on any device or in any location. They offer a high degree of security, however most businesses and individuals need more. Documents that are sensitive and are used to raise funds, due diligence http://www.datazoning.net/mobile-security-quot-avast-scan-failed-quot-issue or negotiating deals must be stored in software that has more protection.

The most important question to ask any’secure data room‘ is will it prohibit authorized users from sharing documents with non-authorized users? Unfortunately the answer is usually „no“. The majority of „secure data rooms“ don’t even limit how many times the same user’s credentials can be used to access the system. It is simple for users to re-use logins they have created on their own devices, or copy and paste the URL into the browser of a friend’s computer.