A data room is a digital storage solution that lets documents be stored in a safe environment. It also offers a variety of additional features to assist in the due diligence process. These tools include annotation tools and granular permissions, as well as activity tracking and watermarking.
Data rooms are often used to share security documents with clients (SOC 2 docs or compliance certificates) to aid due diligence. This is a great method to speed up the process and decrease risk by sharing this information with third parties prior to the close of the deal.
Traditionally, companies have utilized email to share SOC 2 docs as well as other documentation. This isn’t just inefficient, it also causes problems with version control. This is also unsecure, with the increase in emails that are a result of compromised mailboxes, stolen credentials and phishing attacks.
Many secure http://www.datazoning.net/everything-you-need-to-know-about-pc-matic storage and file sharing options such as Box and Dropbox allow access to documents from any device and in any location. Although they offer a decent level of security, most businesses or individuals require more than this. Documents that are sensitive and are used for fundraising, due diligence or negotiating deals need to be stored in software with higher levels of security.
The most important question to ask any’secure data room’ is, does it stop authorized users from sharing documents with non-authorized users? Unfortunately, the answer is almost always no. The majority of “secure data rooms” do not even limit the number of times the same user credentials can be used to access the system. It is easy for people to re-use logins they have created on their own devices or copy and paste the URL into the browser of a colleague’s computer.