Yes. Versioning would need to happen at the filesystem layer, though (and shouldn't cross filesystems/email unless directed to). Too likely to result in disclosure of sensitive information.
I like TortoiseGit for this very reason. Dead simple to turn any folder into a version-controlled folder: it needs no central server or even any kind of central repository on your local machine (unlike Subversion). Even integrates nicely with Word, Excel, and Powerpoint (a diff opens their built-in comparison tools rather than trying to do a diff of the binary files).