Security is one of the most important aspects of virtual data rooms. With a number of special features, like watermarking, permission settings, user verification, etc., you will get the extra-level security that allows you to share files and confidential data safely.
Besides a variety of features, security certifications are proof that the VDR provider took additional steps towards data protection.
Why are certifications essential?
The certification for a secure data room is essential, as you need to be sure the important data is stored and shared securely. The compliance with regulations and standards proves the trustworthiness of the VDR provider, so you can use the software for complex transactions, like M&A, due diligence, or licensing deals.
For example, the licensing deals involve managing and controlling copyrights, patents, and trademarks. This process is a crucial part of your business protection.
Such transactions may also require certain certifications to be successfully executed via an online data room. The mandatory certifications include SOC 2, SOC 1, HIPAA/ITAR compliance, ISO 9001/ISO 27001, and GDPR.
If the data room provider follows these regulations, it adheres to the best security practices, which help to protect data and minimize the risk of a data breach.
Data room compliance essentials
If a data room provider has security certifications, it helps you distinguish them from others that only meet the minimum requirements. Here are the basic security requirements for virtual data room software.
SOC 1 / 2
Service Organization Controls (SOC) standards are proof that the virtual data room provider is restricted from using its users’ information. Compliance with SOC 1 or 2 shows that the provider securely handles financial data.
SOC Principles that include security, processing integrity, privacy, confidentiality, and availability, define how the customer data is managed. SOC 1 or 2 Certification is evidence that a data room provider complies with one or more of these SOC principles and uses them for risk management, system operations, etc.
ISO/IEC 27001:2013 Certification
ISO/IEC 27001:2013 is considered one of the most rigorous international security certifications required for virtual data rooms. This certification shows that the data room provider fulfills the standards that guarantee data confidentiality, integrity, and availability.
General Data Protection Regulation (GDPR) is a regulation responsible for maintaining data privacy and protection in the EU. The data room’s compliance with GDPR shows that the VDR provider supports personal data privacy and integrity when it comes to the exchange of data between the European Union and countries outside of the EU.
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) created standards for protecting confidential and sensitive patient information.
Compliance with HIPAA demonstrates that the virtual data room provider adopted security practices required for electronic healthcare transactions. The HIPAA Compliance Certification is especially important for those who use secure data rooms for work in the healthcare industry.
* * *
Compliance with all of these certifications demonstrates that the data room provider is reliable, so you can efficiently manage the documents during complex transactions.
The security features of online data rooms allow you to have full control over the processes and track all document activity, minimizing the risk of data exposure or leakage.