Sharing documents is an important part of any business. Security is our top priority regardless of whether clients are exchanging documents with you or you are exchanging files with clients. So, how to organize secure collaboration on documents via a digital data room?
Why is not a file-sharing service an alternative anymore?
Over the past 20 years, the need for constant access to documents has increased as digital services have evolved to cover various areas of business and life. At the same time, concerns about the safety and security of data also grew. A few years ago, sharing files in the cloud was a new experience for many, but today it is taken for granted by millions of professionals. Older services such as FTP and 2p2 sharing still have some popularity, but modern users prefer more innovative solutions like virtual data room software.
Secure cloud services encrypt files while they are being uploaded, downloaded, and while they are being stored. Encryption can help protect your files from hackers. Documents stored in the cloud can be accessed from virtually any internet-connected device. While using cloud services is convenient and free or inexpensive, it also has some disadvantages. For example, with Google Drive, you must manually grant access to each file. Since there is no way to automate file sharing, the cloud can be a tedious and time-consuming option.
Human error is also a problem. The more collaborators you have, the greater the risk of someone sharing a file with the wrong person or forgetting to share it altogether. Simple cloud protection with the above services alone is not enough to offer you and your clients real security. Protection in the cloud might be enough for some files, but it’s not enough to protect sensitive customer data in the real world. And when your company’s reputation is at stake, it’s important to move beyond basic document-sharing methods and security.
Virtual data room: share your files securely
Digital data room is a cloud-based full-packed software designed to automate most business operations, simplify transactions and optimize all related processes. Virtual datarooms are considered the most reliable real-time solutions for arranging business collaboration. The data room provides the following security measures:
- Data organization
Thanks to the data room system, all data and information about customers are stored in a single place with the ability to give access to it to other people. Here you can also divide tasks among employees. Cloud platforms store documents and files in an organized and secure manner.
- Planning and tracking efficiency
With the data room, you can easily control and plan processes and tasks because everything is transparent and available electronically. You can easily track the occurrence of problems and fix them in time.
- Authorized access
Which persons have access to a data room must also be determined and recorded in advance. It usually affects not only the companies involved but also external consultants and possibly experts they commission. All parties involved are identified before due diligence, made familiar with the rules, and have to sign that they will comply. A non-disclosure agreement is also part of the usual procedure.
- Data encryption
The data upload or the creation of folders is always encrypted. The same applies to creating and changing passwords. The encryption takes place locally on your computer. Thus, servers never see passwords in plain text.