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When sharing sensitive information in the context of due diligence or other business transaction, security of the data space is an important aspect to consider. Instead of sending files via email, which is typically not secure enough for highly sensitive documents, the use of a virtual data room could assist companies with managing access to their data and speed up the process.

There are many ways to enhance the security of your servers and other equipment within a data center. There are biometric scanners as well as 12-foot chain link fence that has razor wire, and a guard on duty at the front door. These security measures can be expensive and not feasible for small businesses.

To avoid costly errors and ensure security, administrators must be attentive to review the access level and permissions of every user prior to inviting them into the data room. Set the proper permissions for each user group. Consider enabling electronic watermarking in order to stop users from copying or altering sensitive files outside of the VDR.

It’s also a good idea to make audit logs available, SSO integration, two-factor authentication, and granular permissions. These options reduce the possibility of human error and allow administrators to monitor activities in order to detect possible leaks and abuse of the VDR.

It’s also important to make sure that the information you store in your data room is protected by encryption both at rest and in transit. This is essential for M&A due diligence, because sensitive data could end up in the wrong hands because of leaks.