How to Build a Data Governance Strategy Around File Sharing

June 2, 2025 3 min read

With 39% of business data in the cloud used for file sharing, and businesses averaging over 800 external domains for file exchange, secure data governance is no longer optional. Without a strategy in place, you risk data leaks, compliance failures, and reputational damage. The answer lies in building a compliance-aligned, security-first file sharing framework.

Step 1: Understand the Risks of Poor File Governance

Most businesses unknowingly expose files to risk every day. Studies from Varonis show that 2.6% of files are publicly accessible and 9.2% of externally shared documents contain sensitive content. Meanwhile, Computerworld reports that employees use four different file sharing platforms on average. That’s chaos.

You can’t secure what you can’t see. So start by auditing:

  • What platforms are in use: Official and unofficial.
  • What types of files are being shared: And with whom.
  • How files are accessed: Public links, email attachments, personal devices?

Step 2: Choose a Platform That Aligns With Governance Goals

If your current platform doesn’t offer strong encryption, access control, or audit trails, it’s not built for governance. My MX Data is designed specifically to meet these needs, providing secure file sharing for business with built-in compliance facilitation.

Core benefits include:

  • Named User Access: No public links. Files are exchanged only between authorised users.
  • Quantum Secure Patented Methodology: Data is anonymised, sharded, and restored. This protects sensitive content against both modern and future threats.
  • End-to-End Audit Trails: Every action is logged, including timestamps, IP data, and user identity.
  • Policy-Based Controls: Define download limits, expiry rules, and custom user roles.

Step 3: Classify Files by Sensitivity

Data governance starts with knowing what you’re protecting. Segment files based on risk and regulation:

  • Public: Press releases, marketing decks.
  • Internal: Meeting notes, planning documents.
  • Confidential: Payroll data, internal designs, pricing models.
  • Regulated: Any data subject to laws like GDPR, HIPAA, or ISO standards.

My MX Data supports this with metadata tagging and API integrations for structured file classification.

Step 4: Define a Full Lifecycle Policy for File Sharing

A governance strategy doesn’t end when a file is sent. You need policies for:

  1. Upload: Files are tagged with sensitivity level and expiry date.
  2. Sharing: Allowed only via approved systems. No personal email or consumer apps.
  3. Access: Enforced with multi-factor authentication and named-user validation.
  4. Tracking: Use audit logs to monitor file interactions.
  5. Deletion or Archival: Remove access or securely archive after the defined retention period.

Step 5: Encrypt Every File, Every Time

According to Cobalt.io, the average cost of a breach in 2024 was $4.88 million. Strong encryption helps reduce that risk. At My MX Data, all files use:

  • 256-bit AES encryption: For data at rest and in transit.
  • Quantum-resilient methods: The ASR model (Anonymise, Shard, Restore) prepares for tomorrow’s threats, today.
  • Custom encryption policies: Enforce protection standards organisation-wide.

Learn more in our feature breakdown on quantum-secure encryption.

Step 6: Make Auditability a Compliance Requirement

If regulators ask you who accessed what, and you can’t answer, you’re already non-compliant. Audit logs must be:

  • Immutable: They cannot be altered by users or admins.
  • Searchable: Allowing quick incident response.
  • Granular: Including IP, time, action, and file status.

Audit data on My MX Data supports compliance with GDPR and ISO 27001, among others.

Step 7: Train Staff and Standardise Usage

Technology fails when people don’t follow protocol. Human error remains one of the biggest drivers of breaches, especially in smaller firms. StrongDM reports that 61% of SMBs were targeted in 2021 alone.

Standardise and educate:

  • Mandate tools: Require employees to use sanctioned platforms like MX.
  • Prohibit unauthorised sharing: Ban file attachments via unsecured email or consumer apps.
  • Schedule refreshers: Review protocols quarterly or bi-annually.

Step 8: Review and Adjust the Strategy Regularly

Threats change. Compliance laws evolve. Your governance plan must adapt. Set a quarterly review schedule and use these check-in points:

  • Tool audit: Has shadow IT usage crept in?
  • Permission audit: Who has access to which files, and why?
  • Compliance review: Do recent regulation changes affect you?

For updates and best practices, visit our blog or explore MX features in full detail.

Final Thought: Governance Starts With Control

The secure file transfer market is set to exceed $3.6 billion by 2029. As breaches grow costlier and compliance becomes stricter, businesses must act decisively. A secure governance strategy is not about red tape. It’s about maintaining trust, proving compliance, and minimising exposure.

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