What is incident response? An in-depth exploration of its importance and framework

When an organization suspects that its data or IT systems have been compromised by a cyberattack, it activates a pre-defined response plan. This set of procedures and policies is known as incident response.

The main objective of incident response is to minimize the potential damage during the attack. Ideally, it enables the organization to recover more quickly and lessen both the financial impact and reputational harm associated with data breaches.

Understanding the functionality of incident response

To grasp how incident response operates, it's crucial to define what constitutes a credible incident. Three key terms are typically used in this context:

• Events: These are routine actions, such as opening an email or deleting a file, that do not inherently signal a threat on their own.
• Alerts: Notifications generated by an event that may suggest a potential threat, but do not necessarily confirm one.
• Incidents: A collection of related alerts that have been assessed by artificial intelligence (AI) tools or human analysts and identified as a legitimate threat.

Once an event triggers an alert that has been verified by the IT team as posing a genuine threat, the incident response plan is activated. While the specifics of incident response plans can vary across organizations, they generally follow a common framework. Here are the key elements typically outlined in an incident response plan:

1. Incident definition: The plan begins by specifying what constitutes an incident for the organization. This includes evaluating potential financial, reputational, and legal damages, as well as assessing the likelihood of such incidents occurring.
2. Response procedures: Detailed instructions are provided for isolating affected systems and eliminating the threat when an incident occurs. This ensures a systematic approach to managing the situation effectively.
3. Team structure: An organized list of individuals and teams responsible for handling the incident is included, complete with their contact information. Depending on the incident's nature, this list may also encompass external contacts, such as legal advisors and privacy experts.
4. Tool inventory: The plan includes a catalog of the tools and resources that will be employed to combat and mitigate the attack. This can range from anti-malware software and network monitoring tools to backup hard drives and forensic investigation software.
5. Communication strategy: A communication and public relations strategy outlines how information related to the incident will be disclosed both internally and externally. This includes guidelines for informing employees, customers, and the public to maintain transparency and manage the organization’s reputation.

By clearly defining these components, organizations can create a robust incident response plan that enhances their preparedness for potential cyber threats, ultimately allowing them to respond more effectively and minimize the impact of incidents.

Categories of security incidents

Here are some common methods that hackers use to infiltrate a business's data or compromise its systems:

Ransomware

Ransomware is a type of malicious software that encrypts sensitive data, effectively holding it hostage until the business pays a ransom. Cybercriminals often threaten to destroy or publicly release the data if the ransom is not paid.

Malware

Malware refers to software specifically designed to exploit vulnerabilities in hardware and software to extract data or damage computer systems. It includes various forms, such as spyware, Trojan horses, and viruses.

Man-in-the-Middle Attacks

This technique involves a hacker positioning themselves between two parties in a private conversation. By intercepting and manipulating messages, the hacker can trick recipients into revealing sensitive information.

Denial of Service (DoS)

Denial-of-Service attacks overwhelm networks and systems with excessive traffic, causing them to slow down or crash. These attacks can disrupt operations for high-profile companies but can also affect organizations of any size.

Unauthorized access

Hackers may gain unauthorized entry to networks or systems through various means, including phishing or exploiting weak passwords. Once inside, they can install malware or escalate their access to control more sensitive data.

Insider Threats

Employees with legitimate access to sensitive information can pose significant risks, sometimes even greater than external hackers. Insider threats can be deliberate, such as a disgruntled employee leaking confidential data, or accidental, resulting from poor security practices by an employee.

Phishing

Phishing is a form of social engineering that uses emails, texts, or phone calls to impersonate trusted brands in order to deceive users into downloading malware or providing sensitive information, like passwords. Phishing attacks can be widespread, targeting many individuals to maximize the chances of success.

Spear phishing is a more targeted approach that involves detailed research to craft convincing attacks aimed at specific individuals.

The Importance of incident response

When an organization faces a significant cyberattack, it risks damaging its operations, finances, and brand reputation—especially if it lacks a strong incident response strategy or has a weak one.

A study by the Cyentia Institute in 2020 revealed that inadequate incident response processes can cost companies 2.8 times more than those with effective measures in place. A well-structured incident response plan enables organizations to react quickly and efficiently, reducing potential damages.

Additionally, incident response planning serves as crucial documentation for legal and compliance purposes. For instance, the General Data Protection Regulation (GDPR) mandates that companies report data security incidents within 72 hours of discovery. If any incidents lead to civil or criminal violations, the documentation generated during the incident response can be utilized as evidence.

Moreover, companies can use incident response as a tool for positive public relations in the event of a breach. Rather than concealing the incident, organizations can highlight their proactive response and recovery efforts, demonstrating to the public that they took the threat seriously and successfully minimized further damage.

The process of incident response

Incident response frameworks provide standardized guidelines and step-by-step instructions for managing the incident response process. While several frameworks exist, the two most prominent are from the National Institute of Standards and Technology (NIST) and the SysAdmin, Audit, Network, and Security (SANS) Institute.

Both the NIST and SANS frameworks encompass similar components but differ in structure and terminology.

The NIST framework outlines four steps:

• Preparation
• Detection and analysis
• Containment, eradication, and recovery
• Post-incident activity

In contrast, the SANS framework includes six steps:

• Preparation
• Identification
• Containment
• Eradication
• Recovery
• Lessons learned

The key difference between the two is that SANS treats containment, eradication, and recovery as distinct steps. Below is a detailed breakdown of the NIST framework, noting how it may differ from SANS.

Step 1: Preparation

This initial step is similar in both frameworks.

During preparation, organizations define security policies, procedures, and team member roles. Risk assessments are conducted on assets such as servers, networks, and critical endpoints. These assets and their traffic patterns are monitored to establish controls for future reference.

Communication plans are developed, specifying whom to contact based on the type of incident.

Additionally, team members identify which types of incidents require a response and create tailored response plans for each scenario.

Step 2: Detection and analysis

This step is largely consistent between NIST and SANS, though SANS uses slightly different terminology.

Here, an incident is identified and analyzed to assess its potential threat. Relevant information, including log files, error messages, and firewall data, is collected to investigate the entry point and scope of the incident.

Step 3: Containment, eradication, and recovery

While SANS divides this step into three separate phases, the overall goal remains the same: to manage the incident and restore normal operations.

In the containment phase, affected applications and systems are isolated to prevent further damage, and the entry point of the threat is secured. The eradication phase involves removing all traces of the incident, which may necessitate taking systems offline. During recovery, affected systems are tested and validated before being reconnected to the network, with ongoing monitoring to detect any return of the attacker.

Step 4: Post-incident activity

Both NIST and SANS emphasize that this final step should focus on learning from the incident to strengthen security protocols and prevent future occurrences.