Important Document Security in Virtual Data Rooms

Are you looking for an easy to use Virtual Data Room with bank-level security and immediate setup?

A virtual data room (VDR) is an online repository of information that is used for the storing and distribution of documents. It is used to facilitate the due diligence process during an M&A transaction, loan syndication, or private equity and venture capital transactions.

Any organization that is looking for a reliable and highly-secured Virtual Data Room must investigate if the data room solution offers military-level security, multi-language support, full-text search, in-document linking, a wide-ranging selection of other advanced functions and more.

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There are a number of innovative and robust document security procedures that can be used to protect an organization’s document repository and sharing requirements. Let’s look at some of the features that should be an integral part of virtual data room.

Table of Contents:

Per-File/Folder Authorization Management

Administrators and other authorized users are able to control who can gain access to specific folders and documents with the help of file and folder authorization management in a virtual data room. Sometimes, there arise occasions where a user might require access only to one specific document or one set of folders that contain documents concerned with a specific task or project.

With the help of file and folder authorization management, it is effortless to allot authorisations. In particular, administrators have a choice of selecting which users require access to specific aspects of the data room. Certain authorized users might be given complete access, whereas some others may only have access to a file or a folder in the entire pool of document files.

It is important to implement easy-to-use authorization management of per file and per folder, since it strengthens document security and ascertains that classified data does not get misplaced intentionally, either within the company or outside. Per-file and per-folder access is particularly helpful for larger organizations, where various departments might need to view certain aspects of the information.

Human-Based Security

Other than technical document security measures that today’s virtual data rooms offer, it is also important to look into a variety of human-based security features that are also critical in ensuring the safety of classified data.

The reason why human-based security is vital is because in many cases of document security infringements, the issue is not about a random individual making his way into the system; rather, it is because somebody within the organization has provided access to an individual who shouldn’t have had access in the first place.

Irresponsibly providing access to unauthorized individuals can result in the printing and sharing of classified information and revealing protected passwords. Hence, as much as technology matters with regards to document security, human-based security is also just as significant.


The application of watermarking to digital documents can help in providing enhanced security, either through visible or hidden digital watermarks. The intention of incorporating visible watermarks to digital document is to inform the individual accessing the document that the data is classified and that unauthorized copies should not be disseminated or shared, and that the data should not be viewed by any unauthorized individuals.

A digital watermark may contain personally identifiable data so that in case the digital file is disseminated or printed without permission, it is easy to locate diligence of the breach.

Basically, watermarking is a critical document security feature for any virtual data storage system since it discourages individuals from sharing data in any manner that has not been permitted. In some cases, visible watermarks can also help in physically distorting or blocking out data in the event that the digital file is printed without permission.