Does Confidential Disclosure Agreement Protect Your Company Data?

The legal contract states that the signed entities accord not to expose data encompassed by the agreement. The confidential disclosure agreement is useful in creating a classified relationship between the signed entities. It helps to safeguard any kind of classified and patented data or concealed data. But is it enough?

If your business is stringent about requiring every employee to sign a confidential disclosure agreement, then it is also important that the company officials ensure that a rigorous data security strategy is executed.


If your company goes to the trouble of requiring employees to sign an NDA, then it should also ensure that there is a data and document security plan implemented. In order to keep private data and classified information safe from prying eyes, document retention, management and permitted sharing play vital roles in document security.

Every day, emails are sent and received in organizations with attached documents that are unwittingly saved into their respective recipient’s hard drives. Doing so greatly undermines the security of the data in transit and at rest.

By explained in Wikipedia, most organizations do not realize that everyday transmission of data could put their company data in jeopardy. Thus, in spite of a robust confidential disclosure agreement, the failure of creating and instituting a coherent document security strategy can greatly put organizational data at risk.

Confidential Disclosure Agreement Protect Your Company Data

Here is an important benefit associated with implementing a document strategy in addition to maintaining confidential disclosure agreements.

Confidential Disclosure Agreement: Tracking Information

When classified or sensitive information is stored on hard drives, it is effortless for employees to attach the secure documents to an email and send it to anyone anywhere without being observed or monitored. On the whole, an organization will not even be able to understand when or how often this takes place.

However, if that information is uploaded to a virtual data room or an online secure repository, any efforts to retrieve information from the secure location will be observed, recorded and archived through an audit log. With the help of the audit trail logs, administrators of the virtual data rooms observe how every click that takes place in the data room affects the safety of the stored data.

Organizations may want to inform data room users of this functionality, which can be a greater hindrance to illegal dissemination than a Confidential Disclosure Agreement. There will be continuous supervision and substantial evidence of any illegal incidents.


The confidential disclosure agreement is a vital instrument in helping to safeguard your trade information. Do not consider it as the only defense for your information. The best bastion of your information, besides a well-planned agreement, is the application of judgment and discernment before disclosing anything.

In spite of the possible limitations of confidential disclosure agreements, they are critical legal documents. These documents must be employed in conjunction with other powerful document security measures. It ensures that information is safeguarded on a wide variety of fronts.

Confidential disclosure agreements must not be used to the exclusion of other document security procedures. Rather, organizations must implement a robust security strategy. This integrates diverse protective methods, including confidential disclosure agreements, in order to ensure maximum security of sensitive data.

Do read profitable marketing strategy of Starbucks to replicate same and earn for you own company. This article is exclusively written by Jeremy Raynolds.

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This article was published on behalf of Locklizard, a digital rights management security company. They provide DRM Software related to PDF security and Enterprise PDF DRM.

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