Why Every Business Needs an Incident Response Plan

By Mark Torello, Partner-in-Charge of Technology, Whittlesey, PC

Recently, one of our clients had a close call that could have been devastating.

An employee received an email from someone she knew and trusted. She clicked the link, saw a quick computer glitch, and was asked to re-enter her username and password. It seemed harmless enough—we’ve all had computers act up before—but that email was a phishing attack. Within minutes, hackers had captured her login credentials and gained access to the company’s internal systems and confidential data.

Armed with a valid username and password, they could have sent emails to the company’s business partners, posing as a trusted contact and tricking others into handing over critical information.

If this had turned into a full-scale breach, the cost to remediate would have been around $150,000, not to mention the potential operational disruption, legal exposure, and reputational damage.

Thankfully, this company had worked with us to develop cybersecurity controls and an Incident Response Plan. Because that plan was in place, we could immediately lock down the network, perform a forensic investigation, quarantine the attack, and prevent what could have become a legally reportable breach.

Without it, this business would have been required to notify the attorney general, spend thousands on credit monitoring for clients, and publicly acknowledge the breach. Instead, we were able to document the incident internally and move forward with minimal disruption.

What an Incident Response Plan Does for You

For many small and medium-sized businesses, cybersecurity can feel overwhelming. But the truth is, an Incident Response Plan isn’t just for big corporations. It’s an essential part of risk management for every business that relies on technology. Here’s why:

1. It Prevents Damage from Getting Worse

When a cyber incident happens, time is everything. A well-designed plan gives you a clear, step-by-step guide on what to do in those first critical minutes. Many breaches go undetected for months. The longer it takes to respond, the more damage occurs. Acting fast can mean the difference between an inconvenience and a catastrophe.

2. It Defines the Legal and Technical Process

A good plan outlines exactly how to respond and who to involve, from your IT team to your legal counsel and communication partners. It should define:

• What constitutes an “incident” vs. a “breach”
• Who to contact (in order of priority)
• What your legal obligations are
• How to document and report what happened

3. It Creates a Record of Every Step

An Incident Response Plan should include an Incident Response Form, a simple but powerful tool for documenting everything that occurs during a security event. This includes:

• Details of the incident
• Steps taken to contain and investigate it
• The scope of impact (who and what was affected)
• Whether it meets the legal definition of a breach
• Preventative measures for the future
• That documentation is vital for compliance, but it’s also invaluable for learning from the incident and strengthening your defenses.

Keeping Your Plan Alive

Developing an Incident Response Plan is just the start. It must stay up-to-date to be effective. Threats evolve quickly, so I recommend reviewing and testing your plan at least once a year.

Just as importantly, your employees need to know what to do. Human error remains one of the leading causes of cyber incidents. Regular security awareness training helps ensure everyone stays alert and prepared.

The Bottom Line

In today’s world, cyberattacks are not a question of if, but when. You can build the strongest digital walls possible, but without a plan for how to respond, you’re leaving your business exposed.

At Whittlesey, we’ve seen firsthand how preparation turns a potential disaster into a manageable event. A solid Incident Response Plan protects more than data — it protects people, operations, and reputation.

If your business doesn’t yet have an Incident Response Plan or hasn’t had a cybersecurity risk assessment in the past year, now is the time to act. A short, no-obligation consultation with our cybersecurity team can help you understand where you stand and what steps will best protect your business.