What does an NDA primarily protect?

An NDA, or Non-Disclosure Agreement, primarily serves to protect confidential information shared between parties. This legal contract ensures that any sensitive information disclosed during discussions, evaluations, or testing remains confidential and is not shared with unauthorized individuals or entities.

In the context of penetration testing, when a security team engages with a business, they may share proprietary information, methodologies, or system details that are critical to the organization's functioning and security posture. By signing an NDA, both parties agree to safeguard this information, preventing leaks that could compromise security or provide competitive advantages to rivals.

The other options, while important in their own contexts, do not capture the primary function of an NDA. Physical security pertains to the safeguarding of the actual facilities and systems, intellectual property refers to creations of the mind that may be regulated under different laws, and financial transactions cover economic aspects but do not directly relate to confidentiality of shared information. Thus, the focus of an NDA aligns specifically with protecting confidential information shared during such engagements.