Explanation: An incident response plan (IRP) outlines the steps to detect, respond to, and recover from security incidents. A well-defined IRP minimizes the impact of breaches, ensures compliance with regulations, and maintains business continuity.

Risks of Incorrect Answer: Delays in addressing incidents, leading to greater damage.

Non-compliance with industry or legal standards, resulting in fines.

Loss of client trust due to mishandling incidents.

Applicable Frameworks: NIST SP 800-61: Provides guidelines for establishing an incident response plan.

ISO 27001 (A.16.1.1): Addresses incident response and reporting.

HIPAA: Requires incident handling for PHI breaches.

PCI DSS (Requirement 12.10): Mandates an incident response plan for cardholder data.

Explanation: Having a dedicated team ensures accountability and coordination during an incident. Clearly defined roles improve response times and ensure tasks are not duplicated or missed.

Risks of Incorrect Answer: Confusion during an incident, delaying containment and recovery.

Key steps may be overlooked due to undefined responsibilities.

Non-compliance with regulatory requirements for incident management.

Applicable Frameworks: NIST SP 800-61: Recommends establishing a Computer Security Incident Response Team (CSIRT).

ISO 27001 (A.16.1.2): Focuses on defining roles and responsibilities.

SOX: Encourages formal accountability for security processes.

Explanation: Regular testing (e.g., through tabletop exercises or simulations) ensures the IRP works as intended and identifies gaps or areas for improvement. Testing also builds team readiness.

Risks of Incorrect Answer: Unidentified weaknesses in the incident response process.

Delayed response during a real incident due to lack of preparation.

Regulatory penalties for failing to test incident management procedures.

Applicable Frameworks: NIST SP 800-84: Covers simulation-based exercises for incident response.

ISO 27031: Addresses ICT readiness for incident response.

PCI DSS (Requirement 12.10.2): Requires annual testing of incident response procedures.

Explanation: Timely reporting ensures the affected parties can take appropriate action to mitigate risks. It also demonstrates compliance with breach notification regulations and transparency with stakeholders.

Risks of Incorrect Answer: Delayed client response, increasing potential damages.

Non-compliance with legal or regulatory notification timelines, leading to penalties.

Damage to client trust due to lack of transparency.

Applicable Frameworks: GDPR (Article 33): Requires notification within 72 hours of becoming aware of a breach.

HIPAA: Mandates notification of breaches involving PHI.

PCI DSS: Encourages prompt communication of breaches affecting cardholder data.

NIST CSF (DE.CM-6): Emphasizes incident reporting and escalation procedures