By Aaron Stillman, Head of Product Marketing at Tresorit.
Research shows that 81 per cent of UK businesses handle digitised personal data, digitised non-personal data, or both, making secure and efficient data management crucial, particularly when critical transactions and confidential processes are at play. This is where virtual data rooms (VDRs) become invaluable.
With this in mind, how exactly do VDRs work, and what sophisticated features do they offer? How can businesses leverage VDRs to enhance data security, streamline complex processes, and ensure sensitive data is managed and shared efficiently? Are there some key factors businesses should consider when choosing a VDR?
Understanding virtual data rooms
VDRs are secure online platforms designed for storing and sharing sensitive information. In the past, businesses relied on physical data rooms filled with filing cabinets to house important documents. With advancements in technology, these physical spaces have been replaced by virtual data rooms – often referred to as client portal or project rooms – that offer superior security, accessibility, and efficiency. Through these digital environments, businesses can manage sensitive data securely and collaborate seamlessly with clients and partners.
Business benefits of virtual data rooms
VDRs are not just secure digital alternatives to physical data rooms; they offer comprehensive features designed to handle complex business projects with maximum security and efficiency. VDRs provide granular access controls, activity tracking, and advanced user permissions, ensuring that only authorised individuals can view or edit documents. Enhanced security features like dynamic watermarking, document expiry, and audit trails help to maintain the integrity and confidentiality of critical business data.
Additionally, VDRs come equipped with project management tools such as activity dashboards, real-time tracking, and integrated communication features, enabling users to monitor document interactions and project progress seamlessly.
Businesses can leverage VDRs for any activity involving the exchange of confidential data or where access needs to be compartmentalised. Whether it’s onboarding new clients, overseeing projects, or facilitating board communications, VDRs provide a secure, centralised platform for collaboration. For example, VDRs are essential for security consultants when carrying out penetration testing.
They provide a secure, controlled environment for storing sensitive data while maintaining strict access controls and ensuring data confidentiality. Data rooms in financial services also provide a secure environment for managing sensitive data during compliance reviews, financial audits, and regulatory reporting. In project management, VDRs streamline workflows by enabling task assignment, progress tracking, and real-time collaboration, ensuring that all team members are aligned and informed.
VDRs are also ideal in legal settings, where they can safeguard sensitive information such as case files and contracts, allowing only authorised parties access, ensuring confidentiality and reducing legal risks. For research projects, VDRs offer structured information categorisation and remote access, making them especially suitable for collaboration across multiple institutions.
Key features
Virtual data rooms boast a range of sophisticated features tailored for complicated business processes, which offer numerous benefits to help boost security and efficiency, including:
- Enhanced security: with reports showing that 50 per cent of UK businesses suffered a cyber-attack or security breach in the last year, features such as advanced encryption methods, admin and sharing controls, dynamic watermarking, document expiration and audit trails, are more vital than ever.
- Sophisticated project management: features such as activity dashboards and real-time tracking provide users with comprehensive insights into document interactions. This approach ensures VDRs not only store documents but also manage and protect the entire lifecycle of sensitive transactions with unmatched security and efficiency.
- Fast deployment: modern VDRs feature intuitive interfaces, making it easy for users to navigate and manage documents. Since they don’t require extensive training and can be completely integrated into employees’ daily workflows, they help to eliminate the threats of shadow IT such as using insecure file sharing tools.
- Seamless collaboration: is guaranteed with version control, secure external file sharing and integrations with mainstream tools. Additionally, data rooms with an integrated eSignature solution work hard to facilitate collaboration as they remove the need to switch applications, allowing users to sign, share and save documents directly in the data storage repository.
- Advanced accessibility: VDRs’ accessibility features enable smooth teamwork across regions, as they can be accessed from anywhere and via any device with an internet connection. Many VDRs also offer mobile apps, so users can access documents on the go.
Choosing a Virtual Data Room
When selecting a virtual data room (VDR) provider, businesses should carefully evaluate several key factors to ensure they meet their needs effectively. To prioritise security, businesses should look for VDR providers that hold industry-standard certifications, such as ISO 27001, to ensure they adhere to rigorous security practices. Additionally, the chosen provider should assist with compliance to important regulations, including GDPR, NIS2 and industry-specific standards like DORA or FINRA.
Advanced security features are also essential. Businesses should seek out providers that offer zero-knowledge, end-to-end encryption to guarantee that only authorised users can access and decrypt sensitive data. Additional features, such as dynamic watermarks, granular access controls, and comprehensive audit trails, should also be standard. Customisation is another important consideration.
Businesses should ensure the VDR platform offers flexible customisation options, allowing for tailored workflows and branding that suit the organisation’s specific requirements. Reliable customer support is also vital, so businesses should opt for a provider that offers robust support to assist with both initial setup and ongoing management of the VDR.
Enhancing security and efficiency in modern business operations
With the transformation of traditional business processes through digitalisation and as remote working becomes more prevalent, VDRs have emerged as essential tools for businesses. They provide a secure, organised and easily accessible platform for managing sensitive documents, ensuring smooth transactions and collaborations. By introducing VDRs, businesses can improve their operations, ensure compliance and safeguard their valuable data.
Whether an organisation is engaged in an IPO, a research project, legal proceedings or any other process that requires information handling, a VDR can offer the peace of mind and functionality needed to thrive in today’s competitive business landscape.