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Security of the data room is an important aspect to consider when sharing sensitive data during due diligence or any other business transaction. Rather than sending files through email, which is usually not secure enough to protect privileged documents, an online data room can aid companies in managing access and speed up the transaction.

There are a variety of ways to improve the security of your servers and other equipment in a data center. This includes biometric security scanners and a chain link 12′ fence with razor wire, and a 24/7 guard at the entrance gate. These security measures can be expensive and not feasible for small businesses.

To avoid costly errors and ensure security, administrators should take care to carefully review the access level and permissions of every user prior to inviting them into a data room. Check that the right permissions are assigned for each group and individual, and also consider enabling electronic signatures to prevent users from modifying or copying sensitive documents outside the VDR.

It’s also a good idea to set up audit logs, SSO integration, two-factor authentication and granular permissions. These features decrease the risk of human error and allow administrators to keep track of the activity to spot potential leaks and misuse of the VDR.

It’s also important to make sure that the data stored in your data space is protected by encryption in its resting state as well as in transit. This is crucial for M&A due diligence, in which sensitive information could fall into the improper hands if stolen.