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A secure data room is an area, either physical or virtual, to keep and manage sensitive documents during high-risk business transactions. They are commonly utilized for M&As, IPOs and fundraising rounds as in other transactions with high value to ensure that sensitive information is only able to be accessed by authorized individuals. A data room can be managed by one person, or multiple people may be able to access it based on the organization’s structure.

Security and Encryption

It is crucial to choose an online data storage service that has strong encryption protocols to safeguard against unauthorized access. Additionally, select a system that protects data at rest and requires two-factor authentication for access to the platform. This will secure your data even if the server is compromised.

Collaboration Tools

The ability to work in real-time with colleagues on projects using the tools for collaboration in the data room is another benefit you should look for. It is then possible to track the modifications made and when, which can help keep the project on the right track.

Activity Reporting

You should be able to monitor the use of your data room with analytics tools that show who has accessed what files, when and for how long. In addition, you should be able to download custom reports for each file. You should be able, in addition, to add dynamic watermarks that will prevent duplication or sharing of files without proper crediting. Additionally, you should be able implement Information Rights Management security on downloaded files to gain more control over their use within your local network.