I set this to 5 seconds because this gives me a small window between the device going to sleep and it needing a password, bit not such a big one that it could be a vulnerability.
If you have sensitive information, then push this up to "Immediately".
Power button instantly locks
This is a no brainer. If I switch off the device, I want it locked immediately.
Encrypting a tablet is quite a long process, but it's important if you want to make sure that the data on the device is safe from prying eyes. Encryption is the best way to make sure that all data you have on the tablet remains safe in the event of the tablet being lost or stolen.
You don't want any old junk installed on your BYOD or business tablet, so make sure that apps only come from reputable sources.
Here are some other precautions that anyone using an Android tablet should take if it is being used in a business setting.
Install an antimalware app. Don't fall into the trap of thinking that Android — or, for that matter, any other platform — is invulnerable. Every little bit of protection helps.
If possible, pick an antimalware app that supports a "find your device" and remote wipe.
While it's not applicable to the Nexus 7, if you use external storage on your Android tablet — in the form on an SD card — then make sure that this is encrypted.
Don't root the device. While this is OK for consumers, it dramatically increases the attack surface, making it unwise in a business setting.