A data room is a virtual storage solution that gives you secure storage for documents. It also comes with a host of features to aid with due diligence. These features include annotations tools and granular access rights, activity tracking, and watermarking.

Data rooms are commonly used to share security documents with clients (SOC 2 docs or compliance certifications) to support due diligence. This is a great way to accelerate the process and decrease risk by sharing the datazoning.net information with third parties before the deal is complete.

Traditionally, businesses have used email to share SOC 2 documents and other documentation. While this works it is inefficient and leads to version control issues. It is also insecure with attacks on email on the rise resulting in compromised inboxes and credentials being stolen, as well as the phishing exploits.

Many secure file-sharing and storage solutions like Box or Dropbox offer document availability on any device and at any location. They provide a high degree of security, but the majority of people and businesses need more. sensitive documents that are used to conduct due diligence negotiation, fundraising or even negotiating deals should be saved and shared through software that has greater levels of security than these personal file-sharing systems.

The most important question you should 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 restrict the number of times the same user credentials may be used to log into the system. It’s easy for users to re-use logins from their own devices or copy and paste the link into the browser of a friend’s computer.