Protecting confidential business information

Protecting confidential business information

Confidential business information can be one of a business’ biggest assets. When employees leave a business, this data can be compromised and potentially lose a business’ competitive advantage.

It is important for employers to take a proactive approach to protecting their confidential information to avoid any breaches of sensitive data.

Here are three preventative tips to help protect your confidential information:

Well-drafted employment contracts
Employment contracts can protect employers from the misuse of confidential information. Including a specific confidential information clause can add another layer of protection. The clause should include specific definitions and examples and outline the process for dealing with confidential information upon termination.

Restrict access
Confidential information should only be available to those on a “need-to-know” basis. Confidential information, whether physical or electronic, should be clearly marked as being confidential and kept in a secure place when not actively in use.

Enforce an IT & Social Media Policy
Employers should implement an IT policy to educate employees of acceptable and unacceptable behaviour online. An IT policy should establish guidelines for the use and misuse of confidential information online, and include disciplinary action for any breaches to the policy. It is also important to establish a social media policy to set out what constitutes as confidential information, what employees are allowed to disclose, use of privacy settings and so forth.


If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.

Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.

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