Traditionally, business owners would conduct due diligence with partners outside of the company through flying around the world or gathering in a physical space to exchange documents and review the information. In the age of digital C-level executives need to be able to safely and efficiently communicate with traders, service providers and other parties without worrying about sensitive information getting into the wrong hand. VDRs are the solution.
When choosing when choosing a VDR to use as a secure workplace pick one that comes with an eSignature feature built-in to the platform. This feature allows parties to sign NDAs, supplier agreements, and merger agreements on a desktop or mobile devices and ensures that everything remains secure. In contrast to emailing drafts backwards or forwards, or sending them through an eSignature provider from a third party, which adds extra security risks, this feature eliminates the need for additional steps and makes the entire process significantly more efficient.
Additionally, search for an online data room with comprehensive document permission and restriction settings. There are also settings to prevent documents from being edited, copied or downloaded. Two-factor authentication is also available to prevent the possibility of access by unauthorised persons. Many of these VDRs even keep track of the IP address, device and the location from which the user is logging in from to stop unauthorized access.
In addition, many top-notch VDRs have advanced collaboration tools such as commenting and Q&A features. These tools encourage collaboration, but protect privacy by allowing users to edit documents in parallel and hiding the original version until the document is completed. It is essential to have a time-limited access which permits users to remove access at any moment and reduces the risk of data leakage.