Can A Data Room Store Sensitive Information Safely?

Are you an entrepreneur? Has your valuable business data been compromised in the past and as a result, you have lost data or been subjected to negative PR? Are you looking for a safer solution that will help you move away from relying heavily on physical documentation in your office?

Keeping your business’ data safe is one of the most important things you can do to encourage safe work practices and grow your business. But how can you ensure that your data is always safeguarded? Well, you can make the switch from physical documents and start using virtual data rooms.

What Are Virtual Data Rooms?

As the name suggests, virtual data rooms are secure, online spaces that are used as a repository for a company’s documentation. As an entrepreneur, you can use virtual Data Rooms for Sensitive Information sharing with your investors, shareholders, and selected staff members through the internet in a controlled and private environment.

Can a virtual data room store sensitive information securely? The answer is yes. Compared to the traditional or physical data rooms, VDRs are by far the best option for storing sensitive information securely.

Let’s look at three key points that distinguish virtual data rooms from the traditional document-sharing services and see what makes the VDRs more secure.

1. Data Protection

The truth is laptops and desktops can get stolen. In the unfortunate event that your office gets broken into or a fire or flood destroys your premises, your entire IT infrastructure can be wiped out. One of the greatest benefits of virtual storage is data security. When you switch to cloud computing, you are on the right path to ensuring that your data will always be protected.

However, you should also implement additional means to safeguard your data such as checking for malicious activities, using complex authorizations, and using watermarks on your documents.

You should also make sure that viewing of documents in the virtual data room is restricted to selected personnel. File encryption and backing up data regularly keep your data protected and eliminates the risk of unwanted viewing of your files.

2. Better Control

If you are still using traditional repositories in your business, you are missing out on a great chance to run your business more effectively.

Compared to physical data rooms where you have to hire responsible staff members to ensure the security of the data room, virtual storage gives you better control because, as the owner of the data room you can give rights to each VDR user and allow them to make changes to the documents when required and this will ensure that everyone is accountable for their actions and no files land in the wrong hands.

3. Convenience and Comfort

Apart from storing sensitive information securely, virtual data rooms also provide convenience and comfort to all the parties involved as they ensure that the data is safely accessible 24/7 from any mobile device and the work environment is smooth and well organized.

If you have a notification system, it makes working together even more convenient as each party is kept informed whenever there are new updates without the necessary login into the VDR. Since technology is always evolving, be sure to always look for modernizations and new features that will help your business more efficient.