Security is crucial during any transaction and while many will look for essential security processes from their financial suppliers, data security is just as important when you are sharing and collaborating on sensitive documents.
There are many virtual data room providers out there that claim to be secure, but understanding exactly what you need to look for can be extremely difficult So what questions should you ask your provider to ensure that they are prioritising the security of your documents?
1 - Infrastructure. Your confidential information will be stored in servers of the Virtual Data Room provider. How secure are those servers? Where are they located? Are world class standards met? The best way to check this is to ask whether they have third party certifications of ISO27001, SSAE 16 and ISAE 3402. These certifications provide benchmarks of processes that establish world class standards in security.
2 - Secondary server. A secondary server is a must for a Virtual Data Room provider. If the primary server goes down for any reason whatsoever there should be a backup server that is regionally separated, replicates the data at all times and automatically activates if the primary server goes off. As well as security, this ensure that you won’t be left without access to your documents at a crucial time.
3 - Process infrastructure. Are there security measures to ensure data integrity is maintained within the office environment? Are there any ISO certifications regarding process? Do deal coordinators need verified passes to enter the rooms? Are there cameras in the work area to maintain security?The majority of problems that are experienced will be due to user error. Check what processes are being followed and how this impacts areas such as security and service.
Is everything logged to coordinate process? Is each employee trained to follow the process at all times? Is process is not followed does it get flagged to the rest of the team?
A seamless process ensures seamless security.
4 - Employee audits Can your employee activity be monitored via the data room? How can we ensure that they don’t copy the data on a USB and take it with them? Are there enough deterrents to ensure that your data remains secure?
Managing security at a user level is just as crucial as keeping hackers and other external threats out of your system.
5 - Termination process. Is care taken when turning off security to return the data? Does the team ensure that the client checks the data to ensure that its an exact replica? Is the data removed from the server only after written confirmation is received?
You need to ensure that once the deal is done, any sensitive documentation is successfully removed and all copies are accounted for.
Ensure that your provider can answer these key points to maintain a safe and secure transaction and avoid your documents getting into the wrong hands.