Each time you sync your iPad, it creates a backup that lives in iTunes. It's a backup of everything that's on your iPad - which means that if you have confidential client information, there's another copy (and maybe multiple copies) of that sensitive information on your computer. How do you protect that backup file?Fortunately, iTunes gives you a way to protect these backups by encrypting them. In addition to being more secure about your data, you're also saving some time; if you ever have to restore your iPad from a backup, all of your passwords that you're saving on the device will be retained, whereas they won't if you're not encrypting your backup.
To set the password, connect your iPad to your computer. Then, click your iPad's name in the sidebar, and navigate to the Summary tab. At the bottom are Options; check Encrypt iPad Backup at the bottom.
A dialog box will pop up asking you to enter a password. From now on, if you try to restore your iPad from a backup, you'll be prompted to give your password first. The backup data is also encrypted, meaning that anyone who might get ahold of your computer will be unable to view any of the files in the backup.