The importance of incident response planning in cybersecurity

In today's digital age, cybersecurity threats and attacks are more sophisticated than ever. Ransomware, phishing, and AI-driven attacks can threaten businesses of every size across various industries, causing catastrophic damage to their systems and finances.

It’s expected that over 41% of small businesses have or will experience a cybersecurity threat. Not only that, but the average data breach is expected to cost businesses around $4.88 million. A data breach of this size can put small companies out of business and negatively impact employees, clients, and prospects.

That’s why incident response planning is so important to your cybersecurity risk management strategy. With the right planning and preparation, businesses can mitigate risks and protect their assets while ensuring their client's sensitive data is safe from a data breach. A cybersecurity incident plan can also help minimize damage, reduce downtime, and ensure compliance.

If your business doesn’t have an incident response plan, you’re putting yourself and the ones you work with at a financial risk. Here’s everything you need to know about the importance of incident planning.

The impact of cyberattacks without an incident response plan

A cybersecurity attack can cause short-term and long-term damage to businesses. Some small businesses even have a hard time recovering from the damages. Studies suggest nearly 60% of small businesses must stop all operations within six months of a cyberattack.

A cybersecurity incident plan ensures your company has the tools and resources to limit damages and respond accordingly. Without a proper plan in place, your business is at risk of the following:

Financial losses

Whether it’s ransom payments or compliance fines, cybersecurity attacks can be costly. Studies suggest the average cost per stolen record is also around $169. Depending on the severity of the data breach, businesses may be susceptible to millions in damages.

Operational disruption

Cybersecurity attacks can disrupt workweek productivity and efficiency. If critical systems are compromised, it can cause supply chain delays and operational disruptions.

Reputation damage

A severe cybersecurity attack that impacts a customer’s privacy or data can lead to loss of customer trust and legal repercussions. You might have a hard time retaining your current clients or bringing in new business after the attack.

Regulatory compliance risks

Businesses must adhere to specific laws and industry regulations to protect sensitive data. If a business is not compliant, it can result in hefty fines and increased risk of cyber threats. For example, a breach of confidential or personal information in the healthcare industry can violate PIPEDA or HIPAA guidelines. This can put sensitive patient data at risk and also trigger an investigation from the Office of the Privacy Commissioner (OPC), which enforces PIPEDA. This can put hospitals and healthcare businesses at risk of fines and penalties.

Key components of an effective incident response plan

An incident response plan for cybersecurity threats is essential for businesses of every size. With a plan set in place, companies can mitigate risk and respond to the threat accordingly. This can help isolate current risks and prevent future ones from occurring. You must include the following key components when creating an incident response plan for your business.

1. Preparation

The first step is to establish company policies for your employees. Policies are rules and regulations your employees are expected to follow to reduce the risk of cyber threats. You’ll also need to implement employee training and risk assessments to ensure your cybersecurity policies are top of mind during the workweek.

2. Detection & analysis

Next, you’ll need to implement preventative measures. Threat monitoring systems and logging analysis are designed to detect potential threats before they occur. If a threat is recognized, your team can respond accordingly.

3. Containment

Detection and analysis tools help contain and resolve cybersecurity threats before they compromise your systems. If any threats are recognized, you can contain the threat to prevent future damage. With corrective measures put in place, you can protect sensitive data and reduce the risk of financial loss.

4. Eradication

If a threat compromises your system, your team must act accordingly to prevent future damage. By removing malicious actors and restoring systems, you can avoid further complications and minimize business disruptions.

5. Recovery

You can bring systems back online once you’ve contained and eradicated the threat. You’ll want to guarantee the safety of your system and assess the damages caused by the attack.

6. Lessons learned

All cybersecurity threats and damages should be thoroughly recorded. Conducting post-incident reviews and updating response strategies will help prevent future workplace threats.

The growing demand for incident response experts

As cybersecurity threats become more sophisticated, the number of incidents is only going to increase. As a business, you’ll need to plan accordingly to ensure your assets are protected. Investing heavily in incident response teams can guarantee a faster response and reduce operational downtime.
Businesses should also consider hiring for roles like:

• Incident Response Analyst: Their responsibility is to investigate and respond to cybersecurity incidents in the workplace. With a thorough incident analysis, they are able to contain and eradicate risks while improving the security of your systems and networks.
  
• SOC Analyst: A Security Operations Center Analyst monitors and responds to potential cybersecurity risks, protecting and preventing potential threats and vulnerabilities.
  
• Cybersecurity Incident Manager: If an incident occurs, a Cybersecurity Incident Manager is responsible for documenting and analyzing the incident. They will also develop a post-incident analysis with recommendations for improvement.

Well-trained professionals who understand the complex landscape of cybersecurity can protect your business from threats, malware, and data breaches.

Becoming an Incident Responder

If you’re passionate about cybersecurity and want to help businesses minimize risks, you’ll want to start growing skills in digital forensics, malware analysis, threat intelligence, and crisis communication. These are essential skills for successful Incident Responders. You’ll also want to consider getting professional certifications such as GIAC Certified Incident Handler (GCIH) or Certified Incident Responder (CIR).

Want to gain a solid foundation in cybersecurity? Apply for Lighthouse Labs’ Cybersecurity Bootcamp.

How businesses can strengthen their incident response capabilities

The first step all businesses need to take to protect themselves from cybersecurity threats is to develop a comprehensive incident response plan. After the cybersecurity incident plan is integrated into your day-to-day, you’ll need to also:

• Plan tabletop exercises with your employees to discuss the risk of cyber threats
  
• Conduct regular security drills on a monthly or quarterly basis
  
• Use artificial intelligence to improve threat detection and your response rate
  
• Work with a managed security service provider (MSSP) to strengthen your cybersecurity protection
  
• Ensure cybersecurity threats and initiatives are always top of mind with employee training and awareness programs

To mitigate risks and protect your business, you must develop a cybersecurity-first company culture where threats and risks are always top of mind. This will ensure your employees are always on high alert during the workweek, and they can easily recognize a threat.

Improve your cybersecurity risk management plan

To ensure a formal incident response plan works to the best of its ability, you'll need to hire job-ready cybersecurity professionals from Lighthouse Labs. All cybersecurity professionals undergo a rigorous training program and receive the cybersecurity skills necessary for incident response teams.

If you’re an aspiring cybersecurity professional, consider enrolling in a Lighthouse Labs Cybersecurity Bootcamp to start your career in cybersecurity today.