What Are the Risks in Using a File-Sharing System vs a Data Room Service?

What Are the Risks in Using a File-Sharing System vs a Data Room Service?

The virtual data room helps start-ups integrate their financial, legal, IT, and other departments. As the new company continues to grow, the virtual data room serves as a corporate repository of documents and helps to establish communication between managers and avoid all possible risks.

Ensuring the Transfer of File-Sharing with data room service

Almost any organization, be it a large multinational corporation or a micro-enterprise, has to deal with tasks related to the exchange of files in one way or another. Sometimes these tasks can be solved by „regular“ means e-mail, network file resources, external drives, as well as public services, of which there are now quite a few on the Internet. However, it should be borne in mind that the use of such tools often has a negative effect on the productivity and information security of an organization.

One of the main problems here is the lack of standardization of such an exchange, and hence the lack of control over the flows of transmitted information that can be easily achieved with the . As a result, there is an uncontrolled number of versions of documents, there is no single centralized place for storing them, there is no control over the access rights to files, which at any time can lead to both information leakage and loss.

Information data on the network is transmitted in small pieces, each of which is called a packet. To organize the transfer of a file from one PC to another, you need to divide the common file into separate elements, which will then be reassembled into a single volume when the user receives them on his computer. The law does not contain instructions regarding the procedure for acquainting shareholders with this list. Therefore, it is recommended that such a procedure be fixed in the charter of the joint-stock company, providing for the terms of acquaintance.

Avoid Risks with Efficient and Fast File Sharing System

What are the risks in using a file-sharing system vs a data room service?

  1. Ensuring the transfer of the required amount of information.

First of all, the obvious: if in a workflow users need to share files, including large files, this must be ensured. It should be borne in mind that every year there is more information and file sizes are increasing. However, as obvious as this statement is, this is not always done. Surely everyone is familiar with the following message: “The size of the attachment exceeds the limit allowed by the server. Try placing the file in a shared folder and sending a link to it.“

  1. Quotas.

At the same time, the number of transferred files should be limited. In order for the exchange tool to not turn into a „file trash“ over time, users did not demand to add the space available to them. You need to quote both the total amount of space available to the user and the size of the transferred file. But at the same time, one should not forget about the first point and quote volumes based on business processes and real work needs.

  1. Confidentiality.

In the course of each company’s activity, almost from the very beginning of its existence on the market, issues related to document circulation within the deal room become acute. There are many problems with documentation that require an immediate solution.