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Data Rooms are a solution for storing, sharing and managing confidential documents that are used for business processes or financial transactions. In contrast to physical storage, which relies on security measures like secured rooms and surveillance cameras, or the presence of a lawyer to ensure confidentiality, Virtual Data Rooms (VDRs) are accessible online at any time anywhere via an internet connection.

VDRs can be more secure than platforms such as Dropbox, Google Drive and email, since they are geared specifically towards enterprise-grade documents management. They come with features like multi-factor authentication and granular access controls, along with techniques to prevent leaks of data. This includes features that can prevent accidental or malicious data deletions, like the ‘view-as’ tool and dynamic-watermarking.

It's important to be aware that even the most secure platform is not a panacea, and human error will always occur. This is why it's crucial to choose a VDR that provides features to lower the chance of errors, such as audit trails that document all activity within the VDR and a user activity log that allows administrators to observe when users have accessed and altered sensitive data.

Certain VDRs include advanced artificial intelligence features that streamline collaboration, file management and automate routine tasks. This can help speed up the process, ensure that files are organized, and make sure that there aren't any duplicate documents. This is particularly useful during due diligence for M&As, construction, or other situations that require large files to be exchanged between parties.

http://dataroomdesign.com/is-dropbox-secure-enough-for-enterprise-business/

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