What should our Incident Response Plan include for a data breach?
Takeaway: When a data breach occurs, you will not have time to think; your Incident Response Plan is the pre-written, step-by-step playbook that allows your team to act with speed, clarity, and purpose in the middle of a crisis.
A cybersecurity incident is one of the most chaotic and high-stakes events a startup can face. In the first few hours of a breach, you will be inundated with technical, legal, and communication challenges. The key to navigating this crisis effectively is to have a plan before it happens.
An Incident Response (IR) Plan is a formal, documented playbook that outlines exactly who does what, when, and how in the event of a security breach. It is designed to be pulled off the shelf in a moment of crisis to allow your team to move with purpose and to avoid making panicked decisions that could make a bad situation worse.
The Core Phases of an Incident Response Plan
A good IR plan is structured around the standard lifecycle of an incident, as defined by frameworks like NIST.
Preparation: This is the ongoing work you do to be ready. This section of the plan should identify your pre-designated Incident Response Team, including technical, legal, and executive leads, along with their 24/7 contact information and a secure, out-of-band communication channel (like a Signal group).
Detection & Analysis: How does your company identify a potential incident? This section should outline your monitoring tools and the formal process for an employee to report a suspected incident to the IR team.
Containment: This is the first critical action. The goal is to stop the bleeding. Your plan should have clear, pre-approved procedures for isolating affected systems from the network to prevent the attacker from moving further.
Eradication: Once contained, this phase involves identifying and removing the attacker from your systems (e.g., eliminating the malware, disabling the compromised accounts).
Recovery: This is the process of restoring the affected systems to normal operation from clean backups.
The Critical Business and Legal Components
An IR plan is not just a technical document. It must also include a clear plan for the business and legal response.
Communication Plan: This is essential. The plan should have pre-drafted templates for key communications:
An initial public statement for your users acknowledging the incident.
A formal breach notification letter to affected individuals that complies with state laws.
Talking points for your leadership and support teams.
Reporting Obligations: The plan must clearly outline your legal and contractual reporting duties.
For DoD Contractors: This includes the 72-hour reporting requirement to the DoD under the DFARS 7012 clause.
For GDPR/CCPA: This includes the timelines for notifying data protection authorities and affected individuals.
External Resources: The plan should include the contact information for your key external partners who you will need to engage in a crisis:
Your outside legal counsel specializing in data privacy.
Your cyber liability insurance provider.
A pre-vetted digital forensics and incident response (DFIR) firm.
A well-rehearsed Incident Response Plan is like a fire drill for a data breach. It ensures that when the alarm goes off, your team can act with speed, discipline, and coordination to manage the crisis and protect your users, your reputation, and your business.
Disclaimer: This post is for general informational purposes only and does not constitute legal, tax, or financial advice. Reading or relying on this content does not create an attorney–client relationship. Every startup’s situation is unique, and you should consult qualified legal or tax professionals before making decisions that may affect your business.