How Data Room Providers are Reducing a Global Problem by Using Machine Learning & AI to Optimize Compliance
Virtual data room software has gained popularity in all types of organizations where sensitive or confidential data is regularly shared or maintained. Those organizations may include financial institutions, healthcare, the banking sector, life sciences, M&As, litigation, etc.
Online data room software not only ensures daHow Data Room Providers are Reducing a Global Problem by Using Machine Learning & AI to Optimize Complianceta protection, but they help businesses with legal or regulatory compliance. But how does data room software do it? You can find the answer in the text to follow but before that, let’s get you familiar with virtual data room technology.
What is Data Room Software?
Virtual or online data room software is a cloud-based digital data management platform with advanced online collaboration tools. In simple words, it is an online digital document repository for storing, sharing, managing, and remotely accessing business or private data.
Virtual data rooms perform three primary functions, including,
· Data management
· Online collaboration
· Deal management
With the help of data room software, you can upload, access, edit, share, exchange, and organize your business documents. VDRs allow you to arrange documents in whatever manner you prefer and support all globally used file formats like images, audio, videos, documents, digital books, and excel and presentation files.
Second, you can also shift your communication and data sharing to your VDR. That said, you can invite your teammates or employees to your data room, hold online meetings, create group chat rooms, organize live polls, arrange video calls, and exchange personal messages via chat messenger.
Deal management is one of the most important functions of virtual data rooms. When businesses use a data room for deal management, they use it as a central repository to share documents and use VDR communication tools for negotiations and virtual meetings. That is why online data room software is an important part of modern-day M&As, capital raising, clinical trials, strategic partnerships, and joint ventures. Read more about virtual data rooms here https://dataroom-providers.org/
Role of Virtual Data Room in Compliance
ISO 27001 is an international standard that deals with information security management. The standard was published by the ISO (International Organization for Standardization).
ISO 27001 requires organizations to establish, implement, update, and continuously improve information management systems to protect the data in an optimal way.
Modern-day virtual data rooms are ISO 27001-certified solutions. That means businesses can easily integrate data room software in their operations to ensure ISO 27001 compliance.
HIPPA, or The Health Insurance Portability and Accountability Act of 1996, regulates the management, protection, and disclosure of sensitive data in the healthcare sector in the United States. Healthcare institutes are legally obligated to follow the guidelines set by HIPPA and protect the integrity of confidential customer data and other sensitive information.
Virtual data rooms operating in the US and offering services to the life sciences industry are HIPPA certified. Not to mention, the life sciences industry is one of the biggest consumers of data rooms.
FINRA, or Financial Industry Regulatory Authority, is a private regulatory institution in the US that regulates the security industry in the country. FINRA compliance requires all financial institutions to establish easy-to-access electronic data management systems, prevent data loss or theft, and ensure data integrity. Any financial institution that fails to comply with FINRA faces significant penalties and fines.
Again, online data room vendors operating in the United States click here to learn more about datarooms and facilitating financial institutions that are FINRA compliant. These institutions can easily hire any FINRA compliance data room vendor to keep up with the law.
GDPR, or General Data Protection Regulation, developed by the EU, is one of the strongest global data privacy laws specifically used in European countries. Any business or nonprofit organization falling under the scope of GDPR must follow the digital data privacy regulations set by the Institution.
A large number of virtual data room vendors are GDPR compliant and thus can be easily used by organizations that fall under the scope of GDPR.
SOC2 is a compliance standard developed by the AICPA (American Institutes of CPAs). It is a voluntary customer data management standard for service organizations. SOC2 deals with the privacy, integrity, confidentiality, security, and availability of data. Again, most of the high-end virtual data room providers are SOC2 compliant.
It is safe to say that current-day data room services are amongst the safest data management systems because they comply with all major cyber security standards.
Here are some of the most secure data room vendors in 2022
· iDeals Virtual Data Rooms
· Caplinked Virtual Data Rooms
· INTRALINKS Data Rooms
· DealRoom Data Rooms
· Merrill Datasite
Virtual data rooms nowadays are not simple data repositories. They are highly secure and certified data management solutions that also help organizations comply with their local or international data security protocols.