When an organization’s credibility, sales, and customer confidence are on the line, the ability to detect and react to security incidents and events is crucial. Organizations must have an incident management plan in place, whether the breach is small or massive, to reduce the chance of being a target of the next cyber-attack.
A cyber incident can rapidly turn into a business crisis, resulting in financial damages, legal ramifications, organizational disruption, and reputational harm. Despite these serious implications, the vast majority of businesses are still unprepared to react adequately to cyber-attacks.
As cyber-attacks become more damaging to business processes and credibility, companies must establish a comprehensive Cyber Incident Response plan to remain ahead of the cybersecurity curve.
Data breaches have a detrimental impact on a company’s image and can be particularly costly to the bottom line. According to a study done by Juniper cybercrime cost businesses more than US$2 trillion in 2019. As per a 2019 IBM report, forming an incident response can save an organization US$360,000 on average in the event of a data breach.
Three most crucial reasons why organizations need a cyber incident response plan today.
Protecting the Data
Data security is essential for both personal and professional reasons. Businesses can proactively secure their data by following an updated incident response plan. When a hacker uses malware or proprietary information is released to the media, data in the wrong hands can be held for ransom.
The IR team has several roles and duties when it comes to protecting data assets in the incident response process. Stable backups, using logs and security notifications to identify malicious behavior, proper identity and access management to prevent insider attacks, and a strong focus on patch management are all important procedures.
Protecting Reputation & Customer Trust
If a security breach is not addressed promptly, the company will lose any or all of its customers. Customers will lose faith in them if they have a data breach. Furthermore, if a company is publicly traded, investor and shareholder trust will plummet as a result of a well-publicized data breach.
Protecting the Revenue
A robust incident response process protects the company from a possible revenue loss. According to the 2019 Cost of Data Breach Report from Ponemon Institute and IBM Security, the global average cost of a data breach has increased by 12% to US$3.92 million in 2020. In 2021, the global cost of data breaches is estimated to be US$6 trillion per year.
The quicker a company can detect and react to a data breach or even a security incident, the less likely it is that it will have a direct effect on data, consumer loyalty, credibility, and revenue. If an organization doesn’t have an incident management process in place, consider partnering with a third-party managed security services provider to develop a tailored solution for the company.