Why Crisis Management is Important Following a Data Breach

Why Crisis Management is Important Following a Data BreachA data breach can be financially devastating for an organization. Waiting to put a crisis management plan in place, after a cyber-crisis has already occurred, can be detrimental for a business and can make it even more expensive to manage. It’s extremely difficult to avoid a data breach in this digital age, so companies need to not only take precautions with their security, but also have a plan in place for when the inevitable does happen.

Below are some steps that your clients can take to help with crisis management following a data breach:

Take action beforehand.

A business should not wait until their customer’s information or trade secrets are stolen to address cybersecurity and its role in protecting the business. It must be proactive – not reactive. One thing a company should do is work with their insurance agent to find a comprehensive data breach liability program. These programs will extend beyond monetary coverage and can include risk management assistance with data breach protection along with a recovery plan.

Hire a Chief Information Security Officer (CISO).

The primary role of the CISO is to create and implement a plan to ensure that the cyber-assets and technology of the company are protected. As industries move towards more digital products, companies must increase their cyber knowledge, which is the role of the CISO.  Having a crisis management plan in place is the first step towards protecting a company’s digital footprint.

Have a clear plan of action after a crisis occurs.

All employees within a company should clearly know their role in the crisis management plan.  Having a step-by-step guide of action for employees will ensure that day to day activity and production continues.

Don’t isolate the plan to just the technology department.

A breach of company data should be an “all hands on deck” situation. From customer-facing staff to the executive office, everyone is involved when a company gets hacked. All employees may have to field uncomfortable questions, it’s important that everyone is understands the crisis management plan.

Run “worst case scenario” drills.

The plan might look good on paper, but is it good in practice? Simulations should be run to make sure employees know what to do. When a breach occurs should not be the first time the crisis management plan is cracked open and read through.

Every company from a small mom-and-pop shop to a Fortune 500 corporation should protect themselves from data breaches. Small steps can equal fewer losses and quicker recovery, which in turn can mean the difference between continued production or closing the doors for good.

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products or to become an agent, please contact us today at (855) 248-1480.