What is an incident response plan in risk management?

An incident response plan in risk management is a predefined strategy for addressing and managing security breaches. This plan outlines the processes and procedures that an organization should follow when a security incident occurs, ensuring that the response is swift, efficient, and coordinated. The goal of such a plan is to minimize the impact of the incident on the organization’s operations, protect sensitive information, and mitigate any potential damage.

A well-developed incident response plan includes identification of roles and responsibilities, communication protocols, investigation procedures, and steps for recovery and lessons learned. It is a proactive measure that enables organizations to prepare for potential security threats and respond effectively when they occur, thus enhancing overall security posture and resilience.

In contrast, the other options do not accurately describe what an incident response plan entails. Hiring external consultants is a separate function that may or may not relate to incident response, managing customer complaints typically involves customer service approaches rather than security protocols, and a type of insurance policy is focused on financial protection rather than the operational procedures required to handle incidents effectively.