Nowadays, almost all large companies face the problem of long-term secure storage of electronic documents while ensuring their legal significance. This article will argue why using a virtual data room is the best way to process business-critical data.
Why do businesses choose data rooms to share sensitive information?
Ensuring the security and constant operability of the information system is one of the priorities of any company to survive in the fierce competition. As statistics show, more than 80% of security incidents are initiated from inside the corporate network – violations are committed by their employees. Therefore, data room software is the best way to cope with internal and external threats.
According to data-rooms.org, the data room is a SaaS-based solution designed to help companies organize confidential business transactions like M&As, IPOs, venture capital deals, due diligence, etc.
In modern realities, remote coordination and confirmation of documents is an essential components of high-quality and efficient work. However, the information is no longer located exclusively within the organization’s security perimeter in the described case. Organizational and technical measures are needed to protect mobile workflow in the data room. The latter, in particular, include encryption and isolation of corporate data on mobile devices, organization of secure access to the data rooms, and centralized management of security policies on mobile gadgets.
So, using a data room offers the following benefits for businesses in terms of security:
- ensuring the confidentiality of protected documents;
- the ability to control user access rights to the document (reading, editing, printing, etc.);
- authorized access to system resources due to reliable identification and authentication;
- document protection at all stages of its life cycle while being in the perimeter of the electronic document management system, in the network, or at workstations of partner organizations and contractors.
Electronic signature – a guarantor of authenticity
Another exciting trend in data room protection is the possibility of using an electronic digital signature or simply an electronic signature (ES). The main task of an electronic signature is to preserve the integrity of transactions, transactions, and documents in electronic form. More recently, such documents were drawn up only in paper form and required a handwritten signing with a seal.
An electronic signature is required primarily in cases where a document may be required as evidence in legal proceedings, for reporting to public authorities, such as the tax office, or for exchanging documents between legal entities. With a competent organizational and technical implementation of an electronic signature, the risks of non-recognition of electronic documents in court are minimal. Following the law on the use of ES, a document with an electronic signature in electronic form, as a rule, does not need to be additionally certified on paper.
Other benefits of a secure data room
The virtual data room incorporates a mechanism for logging user actions. It is intended for logging the operations of creating, reading, modifying, deleting to the trash, restoring, and finally deleting documents in the package databases. Furthermore, this system ensures the confidentiality and authenticity of payment orders, statements, requests, and other documents when they are transmitted over communication channels, allows authentication of participants, protection of crucial information, control of the integrity of archives, and control of the integrity of software and key information.