Executive teams always have a million decisions to make, and when it comes to spending money on business tools and services, it can be daunting trying to figure out which direction to take. Data security is obviously incredibly important these days, but choosing a data room provider shouldn’t be overwhelming. Here are 6 quick tips when it comes to selecting a data room:
A Data Room Should be Difficult to Crack
In general, the primary concern when selecting a data room relates to the type and sophistication of security measures that the provider utilizes. Companies want to ensure that any data uploaded will be protected from unwanted exposure. This usually requires multi-step authentication procedures to access the data room, such as a password and unique user pin. Relying on one or the other makes it more likely for someone to infiltrate the system, but with a two-factor authentication method, it is virtually impossible for hackers to enter an online database.
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Strong Document Security is Extremely Important
In addition to making it difficult for outsiders to inappropriately access a data room, it is important for there to be additional security measures for the actual documents stored within the room. For example, watermarking can be used to indicate to whom the document belongs, disabled printing can limit who is able to produce a hard copy of a document, and privacy blind allows for a quick click to hide confidential information. Ultimately, stringent security measures must be employed from several angles.
Audit Logs Record Activity in the Data Room
In many cases, a lot of people both internally and externally need to access and review company documents. Depending on how document heavy the business is, it can be difficult to keep tabs on who is accessing which documents, when they access those documents, and what they do with them upon accessing them. However, utilizing a data room eliminates this guesswork or tedious tracking by offering audit logs. An audit log records all data room activity, enabling the data room administrator and/or other company leaders to review the activity that has taken place in the data room over a specified period of time. Therefore, in the event that a document error is identified or something private gets disseminated somehow, the team can review every action that was taken with respect to the particular document to determine where things may have gone wrong.
Related Article: The Benefits of Using a SecureDocs Virtual Data Room Audit Log
User Restrictions Allow for Greater Control Over Data
Although monitoring data room activity is important, sometimes it is easier to simply limit access to particular documents. For example, an HR person who primarily deals with settling conflicts between employees probably does not need access to the company's financial statements. When choosing and setting up a data room, companies should think about who should and should not be able to view certain items. And, with the right data room service, they should be able to assign permissions-based roles to enforce these predetermined restrictions, ensuring that individuals are only able to access items that are pertinent to their particular role.
Customizable Alerts Ensure Important Dates Won’t be Missed
Data rooms are beneficial for so many reasons. They simplify document storage and management, protect confidential information, and help companies keep all of their documentation organized. But, a good data room won't just house documents, it will also facilitate document oversight by helping companies stay on top of important dates. This can be accomplished by creating customizable alerts that will generate email reminders for upcoming events. In addition, a data room should enable companies to highlight and tag key information and have an advanced search function to ensure that things can be located quickly.
Backup and Disaster Recovery Must Not be Overlooked
Losing documents due to technological failure is one of the understandable fears associated with data room usage. However, a solid provider will have a backup and disaster recovery plan in place. Companies must ensure that the data room service they select regularly backs up its system and has highly secure data centers where the physical servers hold all of the information. Losing documents due to glitches or incompetence should never be a concern.