A data room is a digital storage solution that offers an secure storage space for documents. It also provides a range of features to aid with the due diligence. These features include annotation tools with granular permissions and access, watermarking and activity tracking.
A typical use of the use of a data room is to share security documents (SOC 2 docs, compliance certifications, etc) with clients to assist in the due diligence process. This is a great way to accelerate the process and decrease risk by sharing this information with other parties before the deal is complete.
Email has been employed by companies to share SOC 2 documents and other documents. Although this is a good idea, it’s inefficient and can lead to problems with version control. It’s also a security risk with attacks on email on the rise resulting in compromised mailboxes, stolen credentials and phishing exploits.
Many secure file-sharing and storage options such as Box or Dropbox offer document availability on any device and at any location. They provide a high degree of security, however most people and businesses need more. Documents that are sensitive and are used to raise funds or due diligence deals need to be stored in software that has higher levels of security.
The most important question to ask any “secure data room’ is will it prevent authorized users from sharing documents with non-authorized users? Unfortunately, the answer is typically “no”. The majority of secure data rooms do not restrict the number of times that the same user credentials may be used to access the system. Users can easily reuse login credentials on http://www.datazoning.net/mobile-security-quot-avast-scan-failed-quot-issue their devices or copy and paste an URL into the browser of a friend’s PC.
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