How to Select an Investment Banking Data Room?

The virtual data room for investment banking is highly competitive and consists of several major players. Few of the players are expanding their existing business in emerging economies by innovating in cloud and storage technologies.

The Best Way to Select an Investment Banking Data Room

The principle of selecting an investment banking data room, in most cases, is the most effective method of ensuring security. Therefore, at a minimum, a multi-level audit (independent of administrators) of what is happening at all levels is necessary. There are solutions here at different levels. To audit what is happening in telecommunications, applications, and operating systems. But in addition to this, a separate deep audit of what is happening at the database level will be required, and this can be solved by additional means.

Consider the next characteristics in selecting the investment banking data room:

  1. Security.
  2. Encryption.
  3. Non-repudiation.
  4. Error checking.

The investment banking data room really solves the problem of exchanging heterogeneous files; however, some issues of its users are not given due attention by the company: the security of stored files and legal access to them, a full audit of the operations performed. There are additional solutions, methods and settings, and third-party utilities that will reduce the risk of file compromise by reducing the number of attacks using certain vulnerabilities (brute force, sniffing, spoofing, packet spoofing) of an FTP server or human factor (an account for anonymous access, storing a file with passwords on the server, etc.).

Basic Principles of the Investment Banking Data Room

Among the basic principles of information security policy for investment banking data room are:

    1. Provide each employee with the minimum required level of access to data – exactly as much as he needs to perform his job duties.
    2. A layered approach to security. Separation of employees by sectors and departments closed premises with key access, video surveillance, information transfer rules, and multiple data backup – the more protection levels, the more effective information security activities.
    3. The investment banking data room plays an important role in such a protective system. These are “checkpoints” for traffic that will weed out many potential threats at the entrance and will allow you to set access rules to the resources used by employees.
    4. Maintaining a balance between the potential damage from a threat and the cost of preventing it. Some of the new companies are expanding their market presence by moving into untapped market space.

The Implementation of the Main Measures of the Investment Banking Data Room

The selection of the investment banking data room should begin with identifying the subjects of relations associated with the use of information systems. The range of their interests can be divided into the following main categories: accessibility (the ability to receive the required information), integrity (the relevance and consistency of information), and confidentiality.

In terms of information storage security, the investment banking data room recommends that special attention be paid to user authentication and access control. Many commercial security systems implement the protection of the infrastructure and the data itself. In addition, best practices provide for the implementation of the following measures when implementing a data room for investment banking:

    • Change all standard accounts.
    • Avoid sharing accounts that are difficult or impossible to trace.
    • Assigning exactly those rights that are needed to perform the role.
    • Changing or removing rights when leaving or changing the role of a user.