Data Room Security and M&A Due Diligence
Security of the data room is an important aspect to consider when sharing sensitive information during due diligence processes or other business transactions. A virtual data room is a more secure alternative to emailing sensitive documents. Email is not always secure enough.
When it is about security in the data center There are a variety of ways you can increase the security of your equipment and servers. This includes biometric security scanners or a chain-link 12′ fence that is topped with razor wire, and a permanent security guard at the front gate. However, these types of security measures cost a lot and may not be practical for smaller companies.
Administrators should take the time to review each user’s access levels and permissions before inviting them into a room for data to avoid costly mistakes and maintain security. Make sure that the appropriate permissions have been assigned to every individual and group and consider enabling electronic watermarking to stop users from altering or copying sensitive data outside the VDR.
It’s also a good idea to allow audit logs, SSO integration, two-factor authentication, and granular permissions. These features lower the chance of human error, and allow admins monitor the activity to spot possible leaks and abuse of the VDR.
It’s important to ensure that your data is secured both in transit and in rest. This is essential for M&A due diligence, in which confidential data could end up in the wrong hands if stolen.