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During business or project negotiations Parties exchange a huge number of documents. These documents usually contain confidential information that when misused, can damage a company’s financials and reputation. To prevent this from happening data rooms help to facilitate the process of due diligence by providing a safe environment for the exchange of sensitive data. They help simplify the process, safeguard sensitive information and increase communication and collaboration.

The top virtual data room providers offer a comprehensive suite of security features, such as encryption of files during storage and transport users-specific permissions along with granular access rights and activity logs. They also offer a range of digital rights management features such as screen shields and watermarks to prevent leaks.

A high-quality, reliable data room can provide secure sharing of files as well as real-time collaboration between team members. It should have well-labeled files and subfolders that allow users to find the appropriate document. It should also accommodate internal group messaging, which is a more secure alternative to email, and can also prevent data leaks.

A well-designed data room comes with strong hardware-based encryption that can increase security without compromising speed. Furthermore, it should include an advanced redaction tool that is able to effectively and selectively erase confidential information from all documents in a single click. Finally, a top-quality data room should include fire protection measures to protect the IT equipment and the data that is stored within. Fire is responsible for about 6 percent of the damage to IT infrastructure. The right precautions will help avoid costly repairs and downtime.