Glossary
access rights
Data room administrators use access rights to control which users can access which documents and what actions they can perform (reading, writing, downloading, printing etc.).
activity log
Overview of everything any user does in the data room. For example, this audit-proof log documents who has viewed, uploaded or edited which file when. It lets you seamlessly track, trace and verify every activity – an exceptionally important capability for sensitive projects such as due diligence audits.
Advanced Encryption Standard (AES)
AES is an internationally recognized and highly secure encryption algorithm. In accordance with the AES standard, data is encrypted and decrypted with a 128, 192 or 256-bit key. The most secure form is AES-256 encryption – the one used by netfiles.
audit
Screening of a company or organization by independent third parties such as audit firms, mostly on behalf of shareholders or government agencies. Audits are used in particular to scrutinize annual financial statements and balance sheets, and to check for compliance with the provisions of law. An audit can also relate to the inspection of an organization's processes and systems.
audit trail
A seamless (no-gaps) chronological record of all actions taken and all changes to data and/or documents. An audit trail transparently and exhaustively logs who did what in the virtual data room and when. Such trails are vital for compliance and legally watertight documentation, including in the context of audits and reviews. See also "activity log".
authentication
Verification of a user's identity by means of a password, passkey or two-factor authentication, for example. Proper authentication guards against unauthorized access to data rooms and the confidential data they contain.
backup
Backing data up involves creating a copy of data in the interests of security. The data can then be recovered in the event of a system failure or data loss. Data copies can be produced either online or on a separate data medium such as an external hard drive.
BDSG
German acronym for the country's Bundesdatenschutzgesetz (Federal Data Protection Act), which fleshes out the specifications of the EU's General Data Protection Regulation (GDPR) regarding the protection of personal data.
board communication
Board communication is a general term denoting interaction between a group of people charged with specific tasks. Boards (or committees or workgroups) exist in every company, local government, club and association. They meet to discuss proposals, make decisions and complete assignments. Board communication includes oral consultation at in-situ meetings, modern forms such as phone or video conferences, and written communication. A virtual data room solution such as netfiles Board Room enables board members to access all materials required for meetings, edit and comment on documents and exchange ideas and information – and to do this securely and from any location, before, during and after meetings.
BSI C5 certification
Security requirements for cloud services promulgated by Germany's Federal Office for Information Security (BSI) and defined in the Cloud Computing Compliance Criteria Catalogue (C5). netfiles has been awarded C5 certification and complies fully with the more than 120 security measures detailed in the Criteria Catalogue.
cloud storage
An online service where data is stored on a provider's external servers and can be accessed over the Internet from a variety of devices. Virtual data rooms deliver significantly greater security than conventional cloud storage solutions.
collaboration tools
Digital tools that help teams work together and share documents and information across multiple locations. A data room provides functions – such as annotations and video conferences – to enable collaborative document processing and to support communication.
compliance
Adherence to laws, regulations, internal guidelines and ethical standards within companies and organizations.
data room, virtual
A highly secure online platform on which companies can store, selectively release and collaboratively work on confidential documents in digital form. Virtual data rooms are very often used for due diligence audits, mergers & acquisitions (M&As) and real estate transactions.
data room index
A structured numbering system for all folders and documents in a virtual data room. This makes the data room clearer and more manageable. It also simplifies referencing in audit reports, for example.
data protection
Data protection concerns the protection of personal data. Data requires not only technical protection and secure storage, but also protection of the relevant individuals' privacy. Accordingly, restrictions must be imposed on the collection, processing and sharing of personal data.
data security
The term data security refers to protecting digital and analogue data from unauthorized access, loss, damage and/or theft. It includes both technical measures – such as encryption and the use of firewalls – and organizational measures, such as guidelines and training. The objective is to ensure the confidentiality, integrity and availability of data.
data sovereignty
Data sovereignty is an important element of digital sovereignty. Companies, government agencies and individuals who possess data sovereignty retain complete control over the collection, storage, use and processing of their data.
digital sovereignty
Digital sovereignty means that individuals, organizations or governments are self-determined in all their actions in the digital world. This sovereignty – which spans digital technologies and IT infrastructures, but also proprietary data – prevents the emergence of dependencies on individual countries, companies or technology providers.
DORA
The Digital Operational Resilience Act (DORA) is an EU regulation governing the financial sector. DORA demands robust IT risk management systems, regular resilience tests and active management of risks involving third-party IT providers, among other requirements. netfiles data rooms support customers in ensuring compliance with DORA.
drag & drop
Using a mouse cursor, files can simply be "dragged" from your PC and "dropped" into the data room, making the process of creating data room content fast and easy.
due diligence audit
Due diligence audits are comprehensive, detailed examinations and assessments of all relevant aspects of a company, project or property. Such audits are typically performed ahead of a purchase, merger (M&A) or the granting of a financing package. The relevant documents are usually made available in virtual data rooms.
end-to-end encryption (E2EE)
End-to-end encryption (E2EE) ensures that files are automatically encrypted before they are uploaded to netfiles Data Vault and are only decrypted again on the recipient's device. netfiles Data Vault is a virtual data safe that ensures very strict security for the exchange and archiving of especially sensitive information.
file locking
File locking is a procedure that prevents other data room users from accessing a file that is currently being edited. Only one user at a time can make changes. This arrangement avoids versioning conflicts, prevents the loss of data and ensures data consistency.
filesharing
Users can pass on URL links to share digital content such as documents and media with others. The standard of security during data transmission is far higher in virtual data rooms than with conventional filesharing practices.
full-text search
This function allows users to search the entire text content of documents for any words or phrases. It contrasts with pure keyword or metadata searches, which only cover predefined fields such as title, author and/or keywords.
GDPR
The General Data Protection Regulation (GDPR) is an EU-wide law governing the protection and processing of personal data. The GDPR is valid for all companies and organizations that process personal data within the EU.
index
Hierarchical structure of all content to provide clear orientation within the data room.
indexing
When content is uploaded to a data room, automated indexing can assign numbers to documents or insert files in an existing index. To prepare your data room, you can also upload your own index and use it in netfiles.
ISO/IEC 27001:2022
ISO/IEC 27001:2022 is an internationally recognized standard for information security management systems (ISMS). It defines how companies are required to systematically, effectively and verifiably implement information security. Certification proves that a company has implemented an effective ISMS.
ISO 22301:2019
ISO 22301:2019 is an internationally recognized standard for business continuity management (BCM). Certification proves that a company has implemented a management system that comprises robust strategies, emergency response plans and processes to be adopted in emergency situations. The aim is to reliably uphold business continuity in the event of a crisis, and to minimize risks to the greatest extent possible.
link-sharing platform
A link-sharing platform is an online service via which users can make URL links available to share content such as documents and media with others. The standard of security during data transmission is far higher in virtual data rooms than in the case of link sharing.
managed file transfer (MFT)
MFT is a technology that facilitates the automated and controlled transmission of files within a company or between organizations. MFT is much more secure than conventional transfer methods such as FTP, HTTP and SFTP. Data transmission is also faster with MFT.
meeting management
Meeting management involves the structured planning, implementation and follow-up of meetings to maximize their focus and efficiency. In a virtual data room solution for meeting management, such as netfiles Board Room, boards, committees or team members have a convenient way to create, store, edit and share agendas, folders for specific meetings, minutes and resolutions.
mergers & acquisitions (M&As)
Mergers and acquisitions is the collective term for all transactions relating to the merger (fusion) of two companies to form a new entity, or to the acquisition (purchase) of one corporate entity by another. M&As always generate large volumes of documents that are normally made available in a virtual data room.
metadata
Metadata comprises structured information that describes individual documents and files. Examples of metadata include the title, author, version, creation date, change date, access rights, file type, keywords and document status. This information helps users to quickly find content in a data room, manage it correctly and log it transparently.
NIS-2
NIS-2 is the EU's Network and Information Security Directive, which prescribes strict cyber-security standards and reporting duties for companies and organizations. The objective of NIS-2 is to make entities more resilient against cyber-attacks and to promote the implementation of comprehensive technical and organizational security measures.
passkey
Passkeys are an exceptionally secure and user-friendly login method based on cryptographic key pairs. A secret private key is stored on your device, while only the public key is stored with the relevant online service. This approach has two main advantages: Accounts are protected from phishing and cyber-attacks, and users no longer have to remember their passwords.
penetration test
In a penetration test (often abbreviated to "pentest"), IT security experts simulate the methods used by genuine hackers in an attempt to detect weaknesses in IT systems, networks and/or applications.
Q&As
Q&As is the abbreviation of "questions & answers". An integrated Q&A process gives bidders and potential bidders an effective way to clarify questions in netfiles Deal Room itself. Where appropriate, the answers can also be made available to other bidders and participants. All questions and answers are documented centrally in the data room, eliminating the often confusing sequences of mails sent back and forth between parties.
redaction
A redaction function allows sensitive content – such as personal data – to be blacked out (and rendered illegible) in documents before they are released for access by other users. This guards against the unwanted forwarding of information to unauthorized parties.
rights administration
See: access rights
secure audit trail
A secure audit trail means that electronic documents and data are stored in such a way that they can be retrieved transparently and at any time in full and in an unmodifiable status. This is important especially for business documents such as receipts, invoices and contracts, in order to satisfy legal and fiscal requirements. The objective is to guard such documents against tampering.
single sign-on (SSO)
Single sign-on is an authentication method that requires users to sign on only once with their access data, after which they can access all applications and services for which they have suitable authorization. SSO makes applications and services more user-friendly without compromising security.
SOC 2
System and Organization Controls 2 (SOC 2) is an international standard specially designed to ensure that technology and cloud service providers deliver data security and data protection.
SSL encryption
SSL (Secure Sockets Layer) encryption is a security protocol ensuring that data is transmitted between a web browser and a server in encrypted form and is hence protected from third-party access.
SSL/TLS encryption
SSL/TLS encryption covers security protocols which ensure that data is encrypted during transmission between clients (e.g. browsers) and servers, guarding the data against interception and tampering. SSL is essentially an obsolete term. Its more powerful successor, TLS (Transport Layer Security), is used today, which is why people mostly speak of "SSL/TLS".
tagging
Tagging is the assignment of keywords to documents in order to categorize them. This practice makes it easier to find specific files and makes files accessible for search and filter functions. Tags are a core element of knowledge management and data organization in data rooms.
two-factor authentication (2FA)
Two-factor authentication is a strict security standard for users logging into a data room. Two proofs of identity are required: Examples include a combination of user name and password, or the use of a passkey, plus verification via text message or an authenticator/one-time password (OTP) app.
US Cloud Act
The US Cloud Act (Clarifying Lawful Overseas Use of Data Act) is a US law that came into force in 2018. It enables US government agencies to access electronic data stored by US IT and cloud providers – irrespective of whether this data is stored within the USA or on servers abroad. The Cloud Act obliges US providers and their subsidiaries worldwide to disclose data to government agencies in response to legal instructions, even if doing so conflicts with local data protection legislation [in other jurisdictions].
versioning
Versioning is a process that systematically records every change to a file, storing the file as a separate version with a unique number, time stamp and named editor. In this way, previous document statuses can be recovered and all changes can be reconstructed seamlessly.
virtual data room (VDR)
See: data room, virtual
watermark
A watermark is a visible or invisible mark that is inserted in a digital document to confirm its authenticity, protect it or incorporate certain information (such as the copyright owner or creation date). Watermarks are useful to guard against prohibited dissemination and to prove the origin or authentic identity of confidential documents.