Why Small Businesses Need a Cybersecurity Incident Response Plan

Cybercrime is an ever-present threat in today’s digital landscape, particularly for small businesses. Cyberattacks are no longer hypothetical; they are inevitable. According to Inc., 60% of small businesses close within six months of a cyberattack. This alarming statistic underscores the need for a robust cybersecurity incident response plan (IRP).

Rising Cybercrime

Cybercrime has surged over the past five years, and threats are becoming increasingly sophisticated. Small businesses face ransomware, phishing, malware, and Distributed Denial of Service (DDoS) attacks, among other cybercrimes. These growing threats highlight the importance of a well-prepared defence.

Why Prepare for an Incident Response?

Preparation is the cornerstone of resilience. An incident response plan helps businesses:

• Reduce Risk

Quickly identifying and mitigating threats minimizes damage.

• Improve Cyber Resilience

Isolating intrusions prevents them from spreading further.

Without an IRP, businesses are vulnerable to extended downtime, data breaches, financial loss, and reputational damage.

The Four Stages of Incident Response

The National Institute of Standards and Technology (NIST) defines four key stages of incident response:

  1. Preparation

1. • Develop and regularly test incident response plans.

1. • Define roles and responsibilities for incident management.

1. • Establish communication protocols and identify technologies for response.
   • Maintain an emergency contact list of key employees, vendors and your cyber insurance company.  During times of stress, you don’t want to be searching for contact details when you can put a little effort twice per year to review your contact list and ensure it is accurate.

  2. Detection and Analysis

1. • Detect incidents and determine their legitimacy.

1. • Prioritize threats based on potential impact.

1. • Notify key stakeholders promptly.

  3. Containment, Eradication, and Recovery

1. • Contain the threat to prevent its spread.

1. • Eliminate the root cause, remediate systems, and restore operations. Running a vulnerability assessment or hiring a professional to find the source of the breach is worth the money.  Only then can you remediate your systems and then focus on restoration.  If the hole is not plugged, the hackers will come back and exploit it again in hours or days after you have restored from backup.

4. Post-Incident Activity

1. • Conduct a thorough review of the incident.

1. • Identify lessons learned to strengthen future defences.
   • If you don’t wish to repeat history, this may be the most important step.  There is nothing worse than falling victim to the same attack or missing the same step that you knew.
   • Update your plan to reflect your lessons learned.

Building an Effective Response Team

An effective response plan involves a cross-functional team, often called the Cybersecurity Incident Response Team (CSIRT) or Cyber Incident Response Team (CIRT). This team typically includes:

• A manager to oversee incident tracking and communication.
• A technical lead to manage the recovery process.
• Security analysts to track incidents and handle forensics.
• Representatives from legal, HR, public relations, and IT to ensure comprehensive response coverage.

Testing and Updating Your Plan

Cyber threats evolve constantly, and so should your IRP. Regular testing, such as simulated attacks and tabletop exercises, ensures the plan is up-to-date and effective. Frequent updates and employee training help adapt to emerging threats and improve overall preparedness.

The Bottom Line

Cybersecurity is vital for small businesses’ growth and sustainability.  Small businesses must adopt a proactive stance to safeguard their operations and reputation. An incident response plan mitigates risks and ensures your business is equipped to withstand a cyberattack.  Properly handling a cyberattack can mean the difference between maintaining your reputation and your business surviving or lead to ruin. Effective preparation today protects your business tomorrow.