After the COVID-19 pandemic rocked the world, the introduction of remote work has only gained momentum. Over the past few years, more and more sensitive information has been transmitted virtually. While this can save time and support the environment, there are risks associated with the digital exchange of information. It’s important to remember that not all data is the same, and standard security measures may not be enough to protect your sensitive information. The risks of excessive sharing or inappropriate access are too high, and the results of disclosure are too significant. This is where a virtual data room comes to the rescue.
If you want to share sensitive information electronically, you’ve probably heard of virtual data rooms.
The Virtual Data Room and What It Means
A virtual data room is sometimes also called a VDR, electronic data room, virtual deal room, online data room software or private virtual room. The essence is the same and suggests a highly secure online document storage and collaboration space for working, storing and collaborating on your most sensitive projects.
Think of it as a secure room in your home full of locked filing cabinets. There is only one entrance and one exit. You also decide who gets access, and you personally hand them the key to the closet they want.
Whether you’re working on mergers, acquisitions, divestitures, real estate contracts, fundraisers, IPOs or audits, any joint venture can benefit from having a secure space to store and share information.
Can VDRs help you specifically? Absolutely.
Check out some of the key benefits.
The Main Advantages of Data Rooms
1. A Virtual Data Room Provides Maximum Security
When you’re working on high stakes projects, you’re likely sharing or exchanging sensitive information with outside parties. This process is risky as it is, but the stakes get even higher because of the value of the sensitive information being disclosed. If your information sharing isn’t protected, you could become a prime target for cybercriminals.
Even if you don’t attract the attention of hackers, your information could be compromised by negligent employees or accidental leaks. Intentional or not, you’ll still face the same potential consequences: business disruption, an unstable reputation, or even financial damage. When everything is at stake, the data protection offered by other content management tools like Microsoft SharePoint, Google Drive or Dropbox just isn’t an option.
VDRs are ahead of all that and protect your data from the start. Any user logging into VDR must be pre-authorized. With strict permissions, administrators can assign access and capabilities to each user, ensuring that no one gets access to your information unless you explicitly want them to. You can also track who has viewed, downloaded, or edited documents to easily trace the path of data.
By storing sensitive project data in the best virtual data room providers rather than on a shared content collaboration platform, your data is encrypted, stored in a completely separate, private location and not mixed with other corporate data. In doing so, it all adds up to a new level of protection.
While no one plans to fall victim to an intentional or unintentional data breach, virtual data rooms provide peace of mind that your sensitive information is protected.
2. Configuration and Management Simplified
VDRs are not only about their impressive protection. They also offer high usability for all end users.
When dealing with sensitive information, only those who are supposed to be aware of it should be in the loop. However, if you use a traditional content management platform to share information externally, your IT team is at the helm. They have to manage a complex web of permission levels and deeply nested folder structures, even if they have no real understanding of the project or folder contents.
That’s why VDRs were designed as front-office solutions, giving full control and transparency to end users. The platform preserves IT resources, allowing managers and project managers to manage their specific, ad-hoc confidential projects. Often this management can be multiple at once, but in one centralized location.
Even people with basic technology skills can safely manage their virtual data room software and project workspaces without the support of IT teams. This ensures that only those who are needed have access to the documents in the VDR.
3. Effective External Exchange and Collaboration
When working on important projects or joint ventures, you have a lot to do. You’re compiling important document files, tracking tasks, communicating with key stakeholders, and executing contractual agreements. So you usually don’t have time to create collaboration spaces and configure detailed settings to keep your data secure.
Fortunately, VDRs do that job for you. They allow you to optimize information sharing and storage in the most secure way possible. If you want to compare virtual data rooms with other services, they allow you to quickly and easily create new projects and share them with users. For example, some electronic data rooms allow you to create a new workspace in a matter of moments. You can then track key metrics and recent activity on multiple projects from one centralized dashboard.
Features such as task management and monitoring key metrics and activity help ensure that tasks are completed and that the organization meets tight deadlines. Project managers can take advantage of this real-time data to optimize project workflows and make strategic decisions. This then helps keep projects on track.
Using VDRs makes any project more efficient. With a digital platform, information can be collected, organized and exchanged instantly, saving time and money. And because they are specifically designed for secure collaboration, you know that any information on the platform is secure.
4. Your IT Costs are Maximized
Thanks to its many use cases, virtual data room services offer an excellent return on investment. Even if you’re not working on a high-stakes, high-security project, VDRs can be useful in day-to-day operations as well. Not only do these digital safes protect sensitive data, but they also make it easier to collaborate with invited users who traditionally might have been restricted by firewalls or IT restrictions.
When you have an easy-to-use, accessible and secure document repository, you don’t need as many tools. It becomes possible to consolidate solutions. VDRs can be a great investment in terms of security and collaboration.
Conclusion
In today’s world, you need a digital platform for secure external data sharing, tightly controlled permissions and efficient but secure information sharing. VDRs fill this critical space among collaboration tools. It’s security, usability and access that other platforms don’t offer. In the end, an investment in VDR is an investment in secure collaboration in your organization.
Either way, do a data room comparison and choose the platform you’re most comfortable with.