To encrypt a document and set a password:
1. Choose "File" from the top left.
2. Select "Info" and then "Protect Document".
2. From the drop down, select "Encrypt with Password".
3. Type the password.

Adding a "Confidential" watermark to a Word document:
1. Select "Design".
2. Select "Watermark".
3. Choose one of the confidential watermarks.

Adding "Confidential" to an Excel document:
1. Select "Insert".
2. Select "Header & Footer"
3. Type "Confidential".
