The rapid development of digital technologies necessitates an integrated approach to ensuring data security in a business. This article will explore the watermarking and audit trail security features when using a virtual data room for secure deal management.

How to ensure security and compliance in a business deal?

Today, data protection is a complex set of technical, legal, and organizational measures to protect each user’s information from unauthorized access. Many ways to access information and the widespread use of computer technology allow attackers to carry out actions that threaten information security almost anytime and anywhere.

The protection of documentary information in computer systems and networks today is one of the priorities in the activities of companies in the computer industry. It is an important work area for any organization that uses information technology. One of the aspects of the problem is the issue of the protection of electronic documents. The gradual development of digital data management systems like virtual data rooms in enterprises has made it necessary to study the problems of protecting documentary information in computer systems and networks.

Thanks to the abundant software products presented on the market today, the function of systematization, accounting, and storage of contracts is also greatly simplified. Automating deal management processes, which makes it possible to significantly reduce costs for the administration of the organization’s activities and increase its efficiency, rightfully attracts the increased attention of business owners. Following, virtual data rooms make it possible to combine business-critical data from various areas of the company’s life in a secure information space. In addition, prepare a summary and analytics based on the results of processing this information by applying various filters.

Data room security measures: audit trail and watermarking

The digital data room offers a variety of functions for protecting critical business documents. The security measures relate not only to technical security but also to document-related security settings.

  • Watermark

A dynamically generated watermark ensures additional protection against unauthorized disclosure of documents. A special label is embedded in a container to protect copyright and confirm the integrity of the content. Digital watermarks are used to protect against unauthorized use and copying of documents. With the help of digital watermarks, it is possible to trace the violator who creates illegal copies. The watermark embedding system should prevent hackers’ attempts to change the digital watermark and the original data in the container.

  • Audit trail

Organizations are expected to record their transactions and control activities in a structured way so that every action can be traced back to the source documents. All events in the data room are recorded in a consistent log with a time stamp and can be traced later. The audit trail feature allows the concern to profile and rank potential buyers based on their interests and displays the most viewed documents. It is essential to sift through buyers, who should reflect the second due diligence round in which sensitive company documents are often disclosed. The feature allows its potential acquirer to ensure that all documents have been read. In the warehouse of a court case or misuse of confidential documents in the data room, the audit trail proves that the specific user is accessing accurate documents.

An audit trail is important for several reasons. For example, every payment must be traceable internally to an invoice and delivery so that it can be determined with certainty that no unauthorized payments are made.