The biggest concern of every organization when sharing important business files is security.
As data protection and cybersecurity anxieties become more common, shifting from generic file-sharing options to a highly encrypted platform has become more important than ever.
One of the best ways to share sensitive data is by using a VDR (virtual data room). Let’s have a look at what VDRs are and how they can be beneficial for your business.
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What Is a VDR?
A Virtual Data Room (VDR) is a secure online repository of data. It is typically used to store and share documents.
Because they support robust governance with access control permissions, a VDR can be perfect for complex projects and business processes that require the disclosure and sharing of confidential documents with third parties. It is also widely used to share confidential documents within the organization.
Virtual data room features generally go beyond just sharing and storing of documents; they can also provide detailed activity tracking and systems that allow you to keep your documents well organized.
Benefits of VDRs
As mentioned above, one of the biggest advantages of a VDR is security. It allows you to set expiration dates for file access, restrict access to the data room from certain IP addresses, and control the accessibility of secure documents on users’ mobile devices.
Other benefits of VDR include:
- Allows bulk uploads.
- Saves money.
- Saves time.
- Gain better control over data and files.
- Get better analytics.
- Process transparency.
- Allows revoking access rights even after the document has been downloaded.
- It can be customized to create a familiar collaboration workspace.
Things to Look for in a VDR Provider
Though the majority of vendors offer similar features, each of them has its own peculiarities, which can be noticed during an in-depth examination of VDRs. Below are a few things that you should consider before choosing a VDR.
- Strong Security: While security is the biggest reason why businesses consider choosing a VDR, it’s worth mentioning again. Basic security features your VDR should provide include 256-bit data encryption, two-factor authentication, user security impersonation, data backups, SAS certifications, time and IP access restriction, and granular user permissions.
- Ease of Use: Complicated software can impact efficiency and can cause delays in sharing and accessing files. The software you choose shouldn’t require you to install anything on local workstations, should offer multilingual access, and should have a scroll through functionality.
- Test Customer Support: Most leading VDR providers offer a free trial. Signing up for the free trial has many benefits. It will help you understand if it is perfect for your business or not. You can then ask questions about it to test their customer support quality. Check if the support team understand the product and are friendly or not. Also, check if it costs you extra for unlimited support.
- Reputation and Reliability: Many companies die within a few years, and you cannot afford to take this type of risk. Therefore, it is important to choose a vendor with a prestigious client list and a proven history. You also need to know how reliable the data room is.
You should choose a provider that meets your requirements. Also, make sure you know about any additional fees such as for extra storage, features, or user seats.
Setting Up Your Virtual Data Room
Before you can start storing documents, you need to pick a virtual data room provider that meets your requirements. Depending on the provider you choose, you can then set up your own VDR.
For example, with ContractZen, you can quickly set up your own ad hoc virtual data rooms using an intuitive metadata tagging system. All you need to do is click on Manage under Datarooms on the left-hand side of the menu. Then click on Create New Dataroom.
- Create Groups and Add Users: Once you have set up your virtual data room, it’s time to create groups and add users so you can start sharing documents.
- Set Permissions: You need to grant access to users to your files. You can choose from three options including view, download, and edit.
- Add files and folders: The next step is to add files and folders and start using the virtual data room. When uploading files, you can control which users can access what.
Who Should Have Access to Your VDR Data?
Whether you’re using VDR to share sensitive information to third parties or within organizations or for an upcoming financial transaction, it is important to consider who has access to your data. You can consider giving access to these groups.
- Leaders/Top Executives: Giving access to all the files to top executives and leadership teams will ensure efficient communication and keep them in the loop with all the decisions you take.
- Board of Directors: Board members are interested in knowing what’s going on in the company’s leadership and other facets of operations all the time so you can also grant full access to them.
- Human Resources Managers: HR departments have access to a lot of sensitive data such as employees’ personal information, salaries, health insurance plans, and more. Therefore, they need a secure system for storing and sharing the data. With a VDR, you can grant access to limited people within the organization.
VDRs allow you to provide access to multiple parties using your data room and control what each user can see at any given point of time. Depending on how sensitive the file is you can grant access to individuals or a group of users.
Virtual data rooms (VDRs) are the most secure and efficient solution for data sharing and storing in the corporate environment. They protect you from data leaks and misuse of sensitive information.
Analyze the customer support quality and ease of use before finalizing a VDR for your company. This will help you save a lot of time and money in the long run.