dataroomguide.info/types-of-digital-rights-management-and-how-they-work
When sharing sensitive information in the course of due diligence or any other business deal, security of the data room is a major issue to consider. A virtual data room is a better alternative to sending sensitive documents by email. Email is not always secure enough.
When it concerns security for data centers, there are many ways you can increase the security of your servers and equipment. This includes biometric security scanners and a chain link 12′ fence that is topped with razor wire, and a 24/7 security guard at the front gate. But, these types of security measures are costly and may not be suitable for smaller businesses.
Administrators should carefully examine each user’s access level and permissions prior to inviting them into a data room to avoid costly errors and ensure safety. Set the proper permissions for each group and user. Consider enabling electronic watermarking in order to prevent users from modifying or copying sensitive files outside of the VDR.
It’s also a great idea to allow audit logging, SSO integration and two-factor authentication. These features lower the chance of human error and allow administrators to monitor the activity to spot possible leaks and abuse of the VDR.
It’s also important to make sure that the data stored in your data room is secured by encryption in its resting state and during transit. This is essential for M&A due diligence, as confidential information could fall into the wrong hands due to a leak.
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