A data room is datazoning.net/ a virtual storage solution that offers a secure place to store documents. It also offers a number of features that assist with the due diligence. These tools include annotation tools with granular permissions and access, activity tracking and watermarking.
A common use for the data room is to share security documents (SOC 2 docs as well as compliance certificates,) with clients to assist in the due diligence process. This is a great method to speed up the process and decrease risk by sharing this information with third parties before the deal is complete.
Email is a method used by companies to share SOC 2 documents and other documentation. This isn’t only inefficient, but also creates problems with the control of version. It is also insecure with email attacks increasing, resulting in compromised inboxes and credentials being stolen, as well as attacks on phishing.
Many secure storage and file sharing solutions such as Box or Dropbox offer document availability on any device and in any location. They provide a high level of security, but most businesses and individuals need more. Documents that are sensitive and used for fundraising or due diligence deals need to be stored in software with greater levels of security.
The most important question to ask in any secure data room’ is does it restrict authorized users from sharing documents with non-authorized users? Unfortunately the answer to this is almost always no. The majority of secure data rooms don’t even limit how many times the same credentials can be used to access the system. It’s easy for users to use logins on their own devices, or copy and paste the URL into the browser of a friend’s computer.