GCs Urged to Take Charge of Cyber-Incident Planning—Because Consequences of Botching It Are So Dire
In an era where cyberattacks strike with the subtlety of a sledgehammer—disrupting supply chains, exposing sensitive data, and inviting a torrent of lawsuits—general counsel (GCs) are being called upon to seize the reins of incident response. A recent Law.com analysis underscores the peril: Once hackers breach your defenses, preparation isn’t a luxury; it’s survival. By the time stolen data surfaces on the dark web, plaintiffs’ attorneys are already sharpening their pencils, and regulators are circling like vultures. For corporate leaders in the U.S., where cyber incidents cost an average of $4.88 million per breach in 2025 (up 10% from last year), this isn’t hyperbole—it’s a boardroom imperative.
The clarion call comes amid a surge in high-profile hacks targeting third-party vendors, from software suppliers to logistics firms, where companies handling vast troves of personal information are prime targets. “Once a cyberattack hits, it’s too late to start preparing,” warns the report, highlighting how delayed responses amplify fallout: Reputational damage that erodes customer trust, SEC fines for delayed disclosures, and class-action suits that balloon into nine-figure nightmares. GCs, traditionally guardians of legal risk, must now orchestrate cross-functional war rooms—blending IT, PR, and compliance—to mitigate the chaos. Why? Because botching the response doesn’t just sting; it can topple empires, as seen in the 2024 MOVEit breach that spawned over 2,000 lawsuits and $100 million in settlements for affected firms.
At the heart of effective planning lies a robust Incident Response Plan (IRP), tailored to an organization’s unique vulnerabilities—whether it’s a manufacturing giant fending off ransomware on operational technology (OT) systems or a financial services behemoth safeguarding customer PII. Skadden Arps experts emphasize proactive rehearsals: Tabletop exercises simulating a breach, complete with scripted media leaks and regulatory knocks, can shave hours off response times and slash litigation risks by up to 50%. For manufacturing GCs, Alston & Bird attorneys stress customizing scenarios to reflect real-world ops—like a total OT outage halting assembly lines—while integrating business continuity plans for manual fallbacks. No more generic templates; in a sector where CISA flagged OT-targeted attacks as a top threat in May 2025, specificity is the shield.
The stakes? Dire doesn’t begin to cover it. FTI Consulting paints a grim picture: Viral social media storms that crater stock prices (think Equifax’s 35% plunge post-2017), operational halts lasting months (as in Colonial Pipeline’s 2021 fuel crunch), and fractured stakeholder ties that trigger shareholder revolts. For public companies, the SEC’s 2023 cyber disclosure rules demand 8-K filings within four days of material events, turning GCs into de facto crisis conductors. Mishandle comms—failing to notify data subjects under CCPA or GDPR—and you’re courting class actions; delay board briefings, and fiduciary duties come under fire. McGuireWoods adds that GCs must navigate the “multifaceted recovery journey,” from vendor audits to shareholder suits, all while modeling calm amid the storm.
Yet, preparation pays dividends. Conventus Law’s 2025 survey reveals GCs deeply embedded in IRPs—60% in North America lead planning, up from 45% regionally—correlating to faster resolutions and lower sanctions. Best practices include:
- Cross-Functional Teams: Assemble a “cyber SWAT” with CISO, PR leads, and external counsel; rehearse quarterly.
- Tech Integration: Leverage AI for threat detection, but bake in human oversight to avoid false positives that trigger needless alerts.
- Vendor Vetting: Mandate SOC 2 audits and indemnity clauses—third-party breaches account for 60% of incidents.
- Post-Mortem Drills: After every sim, refine for “what-ifs” like ransomware encrypting backups.
Public discourse echoes the urgency. On LinkedIn, #CyberIncidentPlanning threads surged post-Law.com piece, with GCs sharing war stories: One from a Fortune 500 firm recounted a $20M savings from pre-baked notifications, while another decried a “fire drill” response that doubled legal fees. ABA forums buzz with calls for GC-led training, noting 40% of firms still silo cyber under IT—a recipe for disaster.
For U.S. enterprises—from Silicon Valley SaaS to Detroit factories—this mandate reshapes risk landscapes. In a $200 billion cyber insurance market strained by claims (premiums up 25% in 2025), proactive GCs not only cap exposures but unlock ESG cred, attracting talent wary of breach-prone shops. Economically, it fortifies the $25 trillion GDP against disruptions—Colonial’s six-hour shutdown cost $1B in lost output. Lifestyle toll? Less midnight war rooms mean more family dinners, but only if plans preempt the panic.
As cyber threats evolve—from state-sponsored hacks to AI-phished lures—GCs can’t afford passivity. The Law.com wake-up: Botch the plan, and the consequences cascade—lawsuits, lost trust, legacy tarnished. Take charge now; the dark web waits for no one.
By Sam Michael
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