Incident Response Planning and Cost Estimation: A Critical Component of Cybersecurity

The Importance of Incident Response Planning

Not only does the incident response plan lead to better cost estimates, but it will also lead to a quicker return of network functions. “Practice, practice, practice,” says Draeger. “Absolutely practice every step of your incident response plan and whatever your critical processes are. Be able to run manually. Be able to run on paper. If it requires that a form is printed out, have a stash of them somewhere. Whatever you need to do to run without your network until you can get your network up, have that system already in place.”

Challenges in Cost Estimation

Stephen Boyer, founder and chief innovation officer of Bitsight, tells CSO that one big handicap CISOs face is the lack of a common method for calculating incident costs. CISOs can rely on various risk management models to calculate the expected costs of some variables that make up breach costs, including the widely used Fair Institute methodology or the Monte Carlo Simulation, to name two of the most frequently used methods.

The Need for a Universal Standard

“But, there’s not a universally accepted standard for measuring and predicting the losses,” Boyer says. Miscalculating the costs can significantly damage a CISO’s reputation or even lead to job loss. “If something comes back and we have an annual expected loss of $50 million, maybe it’s $54 million, maybe it’s $48 million. But if then something comes back and you have a loss of $60 million, it’s like, ‘Hey Steven, you’re an idiot.’”

Conclusion

Incident response planning is a critical component of cybersecurity, as it enables organizations to respond quickly and effectively to security incidents. However, a common challenge CISOs face is the lack of a common method for calculating incident costs. The absence of a universal standard for measuring and predicting losses can lead to miscalculations, which can have serious consequences for a CISO’s reputation and job security. It is essential for organizations to have a solid incident response plan in place, and for CISOs to practice and refine their plans regularly to ensure that they are prepared for any situation that may arise.

FAQs

Q: What is the importance of incident response planning?

A: Incident response planning is crucial for organizations to respond quickly and effectively to security incidents. It enables them to contain the damage, minimize the impact, and restore normal operations as soon as possible.

Q: What are the challenges in cost estimation for CISOs?

A: CISOs face the challenge of lack of a common method for calculating incident costs. They can rely on various risk management models, but there is no universally accepted standard for measuring and predicting losses.

Q: What are the consequences of miscalculating costs?

A: Miscalculating costs can significantly damage a CISO’s reputation or even lead to job loss. It is essential for CISOs to have accurate cost estimates to avoid such consequences.

Q: How can CISOs overcome the challenges of cost estimation?

A: CISOs can overcome the challenges of cost estimation by practicing and refining their incident response plans regularly. They should also consider using risk management models and having a stash of necessary resources, such as printed forms, to ensure they can respond effectively in the event of a security incident.