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More and more sources are talking about the great importance of data protection today, but at the same time, not all businessmen pay due attention to this when setting priorities. So, this article will provide actionable tips to keep business deals secure.

How to ensure data security in business deal management? 

The constant development of digitalization significantly impacts the security of information processed in the digital world. Digitalization means not only technological development but also involves various kinds of threats affecting public and commercial structures.

Nowadays, a significant number of enterprises are resorting to the introduction and subsequently to the use of virtual data rooms due to the need to simplify and automate the cycle of working with documents, which has a positive effect on the solution of managerial tasks. In most cases, a workflow automation platform becomes extremely necessary in implementing modern business processes management concepts, such as document maintenance, knowledge management, and quality management, in executing contracts. In addition, optimized data room systems allow you to accelerate the implementation of tasks and get ahead of competitors in making operational and strategic decisions.

Security is one of the top five concerns for almost every company worldwide. An organization’s uncontrolled internal deal management creates a major security risk for valuable and confidential corporate information. The risk also arises when company employees use services that have not been verified and approved by the IT department or security service, potentially giving them access to the wrong audience. More than ever, companies need to keep track of how documents are distributed, published, and stored – especially in large, distributed organizations where one department doesn’t need to know what another is doing.

Digital data room as the best alternative to secure deal collaboration

Even the smallest business deal can have nuances. To make you feel confident, we have prepared a few recommendations. A virtual data room is a secure online repository where organizations can store and share important business information. The online data room offers a full suite of digital tools, including watermarks, Q&A tools, bookmarks, end-to-end encryption, annotation tools, etc. The areas of application of virtual data rooms are diverse. However, it is mainly larger companies and companies from the financial sector that deals with the topic due to sensitive data and transactions. So, the software can be used for arranging due diligence, M&As, IPOs, venture capital and real estate deals, fundraising, etc. 

The main advantages of using cloud technologies in the data room software include: 

• the availability of information, which allows employees to become more mobile; 
• saving money for the purchase, installation, and support of appropriate software; 
• reducing the search time for the necessary information with centralized data storage; 
• facilitating the process of cooperation with other enterprises through secure browsing and information exchange through the cloud platform; 
• ease of use, which helps to increase the productivity of employees who are less distracted from their current tasks; 
• increased fault tolerance and security; 
• scalability of the cloud service in a short time as needed.

In addition, the data room software at the enterprise is integrated with external cryptographic protection tools. It supports an electronic digital signature and allows you to organize a legally significant workflow.

Virtual data rooms are a natural extension of actual data rooms. Initially, they were needed to facilitate the passage of large transactions, such as mergers and acquisitions. Previously, a huge room was allocated for this process, in which the necessary documents were collected, many employees, and the event took months. VDR technology dramatically simplifies the process and makes it fast and comfortable for all participants. In general, virtual rooms can be used for the following tasks.

Major deals in companies

First, virtual data rooms are intended for large transactions such as mergers and acquisitions, company purchases, and bankruptcy. These are complex processes that require a large number of documents shared between lawyers and managers of one or several enterprises. VDR technology offers the most convenient format for all participants in the process.

Preparing the company for an IPO

If you are going to take your company to the stock market, you also need careful preparation. The best way to do this is to use a virtual data room. Then, all participants in the process can comfortably carry out their work activities: collect documents, prepare reports and analytics, discuss them, and so on.

Meetings

Virtually all virtual data rooms have integrations that help host virtual meetings for board members. During meetings, you can vote, make minutes, make a decision and immediately certify it with your electronic signature.

Working with documents

If it is essential for you that company employees work with documents only in a secure space, VDR technology is the best fit for this. Here you can work with documents in different formats: view, edit, and so on. In addition, large companies can request from developers individually added options related to working with documents.

File storage

This is the easiest way to use a virtual data room – you can store documents in it. The vital point is that you can safely leave any files here. Due to flexible access settings, not all employees can see or edit the documentation. You also have a complete history of viewing and editing documents. Encryption and double authentication prevent third parties from accessing files.

Analytics and reporting

With the help of a virtual data room in integrated artificial intelligence, you can easily collect reports on various company affairs and analyze financial indicators. This is especially important if your company operates in the financial sector and is engaged in banking.

Space for collaborative remote work

With the advent of Covid-19 in our lives, views on the need for remote work have changed. Many companies now allow their employees to work remotely, at least occasionally. It turned out that for many, it is much more comfortable than the constant presence in the office.

A virtual data room can replace many online collaboration tools at once. Here you can edit files with your colleagues and discuss all work issues at meetings.

But most importantly, all your working moments are solved in a completely protected space from attacks.

Data protection is perhaps the main task of every modern business, both small and large. After all, no one wants data about customers and services to pass to third parties. However, there are several common threats to company data and common ways to protect against data loss.

Data protection is a company priority

The use of IT technologies in an enterprise is associated with risks related to ensuring the protection of corporate information. And the reasons for this are not so much the actions of competitors or hackers as insufficient attention to these issues by the management of the enterprise.

The corporate security policy should regulate the implementation of information protection mechanisms against internal and external threats and address the problems of secure data transmission both within the enterprise network and via the global Internet.

Ensuring the integrity and safety of information within the Corporate network, communication within the web can be placed on individual users’ workstations, databases (banks) of data, and multidimensional data warehouses on servers.

Basic Security

The main security measures in this case are:

• Access control (user authentication, passwords, software keys).
• Data reservation.
• Protection against harmful software that can damage the data structure or change file attributes.
• Increasing the fault tolerance of systems as a whole.
• Use of DLP systems to protect against information leakage.

To ensure effective protection against external threats, the entire network infrastructure must be audited. Depending on the identified vulnerabilities, specialists form a software and hardware package. The most effective ways to improve security against external threats:

• Firewall.
• Organization of a demilitarized zone.
• Control and accounting of traffic of network connections.
• Anti-virus software, intrusion protection system.
• Protection against spyware and DDoS attacks.
• Internetworking

To increase the security and reliability of data transmission both within the corporate network and on the global Internet, you can:

• Use of VPN channels when connecting remote users.
• Segmentation of the corporate network with the introduction of restrictions on access rights,
• Use of encryption tools.

Information security issues are usually delegated to situational and authentication centers in large organizations. The first allows you to detect incidents and take measures to reduce the likelihood of their recurrence. The latter is responsible for access control and management, limiting the degree of third-party impact on corporate data.

In both cases, the effectiveness of the results depends on the timeliness of the measures taken and the relevance of the software and hardware tools used.

Virtual data rooms are ready to provide comprehensive services for organizing adequate information protection in the networks of large enterprises. Based on the architecture analysis and considering the peculiarities of the functioning of the IT infrastructure of your enterprise, solutions will be proposed to ensure the highest level of corporate information security.

You can also purchase a ready-made data room that will meet your company’s needs. Large enterprises can take the opportunity to independently assemble a set of tools for themselves in the selected VDR service.

To choose a virtual data room, you need to understand the budget for this event, requests (what exactly do you need VDR technology for), look at several options, and evaluate their functionality, ease of use, and accessibility for your employees.

The most popular services are iDeals, DataSite, DealRoom, Citrix. They have high ratings among users and have proven themselves well in working with large enterprises.

A startup is an opportunity for ideas to take off. But, of course, sometimes startups fail; no one is immune from this. On the other hand, if you feel that your business is gaining momentum and have received investments from an extensive business angel, you need to take care of data protection. Of course, the idea of ​​your startup may already be presented to the general public. But the details of the development should not be known. Virtual data rooms help protect information about your future project.

How to choose a virtual data room for a startup?

So, you have decided to protect your data with a virtual room. Now it will be presented to choose because there are many options – each of them is good in its way. Pay attention to these characteristics:

• Price. In the case of startups, it is better to limit the monthly budget allocated to the data room immediately. After all, startups often exist at the expense of investors or inventors, and the budget for additional services is limited. Don’t worry; there are quite a few different options, ranging from $50-$150/month to $300-$500/month.
• Functional. Decide which functions in the data room are a priority for you. For example, if you all work in the same office, you can completely do without advanced meeting functionality. After all, you can also call by Zoom, without paying for an additional service in the VDR.
• Ease of use. For a small team, choosing a simple data room that everyone can figure out in a few days is best.

To better understand the issue, try to find yourself virtual room providers that offer a free version for at least a few days. This will allow all team members to understand how the software works and whether it suits your task.

Multiple options for startups

So that you do not scour the Internet in search of suitable software, below are some excellent and budget options that are suitable for startups:

• Fordata. The cost of this software is about $200 for 15 users. Not a bad option for a startup, especially if it is related to finance or banking. There are robust security standards: encryption, individual file protection, document control, and two-factor authentication. Like other VDRs, there is a 24/7 support service.
• Firmex. The virtual room is based on cloud technology, so you won’t need to download anything to your computer. With the help of tools, you can manage documentation on the site, drag and drop documents, edit them inside the program, invite users, generate audit trails, and so on. For big deals, you can invite new users to the virtual room.
• Ansarada. One of the budget options for startups will cost only $39 per month and more. There is artificial intelligence here; it helps users generate reports. Ansarada offers a lot of tools for the financial side, conducting transactions, preparing a company for entering the stock market, and so on. With the help of data room tools, you can perform volumetric analytics and improve your business strategy for a startup.

Admincontrol’s Data Room, Digify, ShareVault are also suitable for startups.