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Security Data Rooms (SDRs) are cloud-based solutions that allow the secure storage and sharing of confidential information. They are utilized for M&A due diligence, due diligence and real estate asset management, as well as any other business that requires specialized secure file sharing.

It’s not surprising that businesses are concerned with the security of their confidential business data, especially due to recent high-profile data breaches. Encrypting data-at-rest within a virtual dataroom is crucial to keep hackers from accessing documents. However, it’s just one piece of the puzzle. To ensure your data is safe it is essential to take a holistic approach to the security of your data room that includes training, policies and technical capabilities.

VDRs are also helpful in to ensure compliance with industry standards like the Payment Card Industry Data Security Standard. PCI-DSS requires secure storage, strong access controls, encrypted transmissions and regular security tests. This feature shows your clients, associates and other stakeholders that data security is important to you.

Some VDR systems can also limit access to content within the application by limiting IP addresses that qualify to be granted VDR access. This can prevent unauthorized users using screen capture tools to take document content and then share them with third parties. VDRs that have advanced access controls also enable administrators to link the identity of a user who is authorized to printed and viewed documents.