Securing sensitive information in Data Room
A majority of companies utilize data rooms to share sensitive documents with partners and clients. Data rooms are usually used to support due diligence in transactions, however, they can also be used for other purposes like internal audits. The sensitive information shared in a data room can include things like patents, customer records financial details, financial records and other business documents that are highly confidential.
It is crucial to protect sensitive information that is transferred through unsecure channels. This involves being able to stop files from being copied or pasted on, or duplicated without author’s permission. This could be a challenge for companies that rely on their intellectual properties to generate revenue. This risk can be mitigated by using virtual datarooms with file-level controls for DRM.
For instance, if the fictional company Y2B Computers had used a data room to share their design specifications with production companies to produce their laptops that way, they would be able to keep control of the technology and price point that they were selling. However, since Y2B didn’t use an information room to share their info with production companies. A different company decided to eliminate the middleman and develop their own version of the laptop. Within months their knockoff was on store shelves and costing consumers a fraction of the price Y2B charged for the original design.
To safeguard their data, many businesses are switching to virtual data rooms. These are online platforms that allow users to upload and access private documents. Some include features like specific permission settings and audit logs to track who has accessed what and at when and what date.
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