Security Data Rooms (SDRs) are cloud-based services that allow the safe storage and sharing of confidential data. They are used in M&A due diligence as well as in real estate asset lifecycle management, and any business where there is the need for secure, specialized file sharing.

It’s not a surprise that businesses are concerned with the security of their confidential business data, especially in light of recent, high-profile data breaches. While encryption of data at rest in a virtual data room is vital to stop hackers from gaining access your documents, it’s just one aspect of the overall picture. To ensure your data is safe you should adopt a http://www.dataroomdesign.com/what-is-a-private-equity-data-room more holistic approach to data room security that includes policies, training and technical capabilities.

VDRs are also helpful in making sure that you are in compliance with industry regulations for example, the Payment Card Industry Data Security Standard. PCI-DSS requires secure storage, strict control over access and encrypted transmissions as well as regular security tests. This certification shows your customers, partners and other stakeholders that you take data security seriously.

Some VDR systems are also able to restrict access to in-app content by limiting the IP addresses that can be granted VDR access. This will stop unauthorized users using screen capture tools to take document content and share them with non-authorized third parties. VDRs that have advanced access controls also enable admins to link an authorized user’s identity to viewed images and printed documents.