Data Room Rules – Security & Law Sides

The rapid transition of the world from real to virtual dictates new rules of the game. And information security is one of the main tasks for those who are concerned about the preservation of their confidential data.

Principles of Data Room security

The use of IT-based digital Data Rooms is becoming increasingly popular due to the increase in international corporate transactions and the need to enable consultants and interested parties to access a document secure repository across national borders. Data Room enables protected access to information as part of due diligence.

Information security is important for business, because it depends on the relationship both within the company and externally, with its counterparties. Cloud-based Data Room technology is of interest to both large companies trying to optimize their costs for the corporation’s IT infrastructure and small companies that cannot immediately deploy their infrastructure. The growing interest in cloud computing technology is due to the economic effect of its use. However, despite the obvious advantages, some problematic issues need to be addressed when using cloud computing. The main ones include trust in the service provider, ensuring the confidentiality, integrity, authenticity, and irrefutability of information at all stages of its existence, uninterrupted operation, protection against unauthorized access, and storage of personal data of users transmitted and processed in the cloud.

When building an information security system, you should not forget about the basic principles that should be involved in it:

  • Confidentiality – An exhaustive list of people who have access to specific information about the company should always be established.
  • Integrity – ensuring the reliability and completeness of information, as well as methods of its processing.
  • Accessibility – unimpeded access to the information of authorized persons, taking into account the principle of confidentiality.

Basic Data Room rules

During the development of the information security system, the basic, basic rules of information handling should be communicated to all employees, taking into account that most work issues are solved today with the help of computers and mobile gadgets.

These Data Room rules highlight the terms and conditions for the access and consultation agreement of the information and data available in the system. The list of the 10 Data Room rules includes:

  1. take all reasonable steps to ensure that none of the information is visible to, or capable of being, overlooked by, other persons;
  2. not leave computer or other communications device through which they access the service unattended whilst connected to the Data Room;
  3. ensure to close the browser and log out when they have finished using the Data Room;
  4. not deface, mark, alter, modify, vary, damage, or destroy in any way any information contained on the Data Room;
  5. not attempt to disable the protection software associated with the website;
  6. any sale and purchase agreement that may relate to the Information been made available should provide that the contents of the information shall be deemed to be disclosed against any warranties.
  7. use strong passwords. Do not use the same password on different Internet resources, change it regularly.
  8. back up your important data, store it on storage media disconnected from the Internet.
  9. the decision on the preparation of a Data Room and the approval of due diligence is to be made by the board of directors – like any other decision within the framework of management.
  10. the duty of confidentiality is part of the executive board’s duty of loyalty to the company and prohibits the executive board from disclosing sensitive information to third parties.