Firms looking to share sensitive information can upload it in virtual data rooms since they are considered safe and easy to use. Many who depend on such platforms engage in mergers and acquisitions, litigation, medical research, real estate, and private equity. Uploaded information allows the user access to information as needed and automation of tasks for due diligence processes. However, the safety of the information shared depends on the security measures put in place. Physically, you can only secure the data rooms by securing systems and gadgets that can access them. This can be done by having the gadgets locked in strong rooms with limited access and away from natural calamities such as floods. The security protocols become a bit complex online. The internet is vulnerable due to cybersecurity crimes such as hackers and malware. To secure the data rooms online, below are a few things you can implement.
1) Secured Storage
Information shared can ruin reputations and even bring down the largest firms. Since you have probably seen the effects and losses brought upon companies such as Yahoo and eBay, you would not want to be in the same position. Despite Virtual Data Rooms being considered efficient and safe, some fail to meet the standards to make them so. The VDRs, if developed by ill-equipped people, would leave them vulnerable. If you cannot create one yourself, consider firmex.com to guide how to go about it. All in all, the virtual data room should be ISO compliant and should offer ample space to meet your storage needs. If possible, have a two-factor authentication process and strong encryption methods, which help reduce its vulnerability. Additionally, have access to the user’s location and IP Address to track access points. If the VDR is connected to the business’s email server and other public and generic sharing platforms such as Google Drive and Dropbox, consider further security measures to reduce the threat.
2) Controlled Access
Due to the information’s state, not every Tom, Dick, and Harry should access it. Limiting access helps control information leakage and displacement. Users can get Single Sign-on and even control the level of access. Those with high ranks can get full access. The level of access decreases as ranks become lower. It also helps prevent human error where the not-so-tech-savvy users do not access compromising icons that can alter documents uploaded. You can put in place robust user support to help in navigation, as this helps reduce human error.
3) Audit Logs
Put in place audit logs that help track each user’s activities in the data room. Despite holding high ranks, some become moles and leak information to anyone willing to exchange it for their own benefits. In Mergers and Acquisitions, leaked information can ruin the deal and even force the interested buyer out of the negotiations. In litigation, it compromises information shared in confidentiality and gives the other side an upper hand. The checks should be made periodically to ensure you are always on top of things at all times.
