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Your first response to a cyber breach defines your reputation

ARTICLE

This article is part of BLG’s 12-part series: 12 Strategic Priorities for Privacy, Cybersecurity, and AI Risk Management. The series equips Canadian leaders with the insights they need to anticipate risk and lead confidently in complex times.

When a cyber breach hits, the clock starts ticking. The way your organization responds in those first critical hours can either protect or permanently damage your reputation. It can shape stakeholder confidence, regulatory outcomes, and long-term enterprise value.

Why it matters

Organizations today are judged not only on whether they are breached, but on how they respond. Investors, regulators, employees, and customers all expect a swift, disciplined, and transparent approach. A coordinated breach response protects trust and sends a strong signal about the organization’s governance culture.

Failing to respond promptly and effectively can trigger cascading consequences: reputational harm, regulatory penalties, shareholder litigation, and loss of customer loyalty. The board’s role is to ensure the response framework is in place, tested, and owned by leadership before a breach occurs.

What management and boards must prioritize

1. Cross-functional crisis playbook

A well-defined playbook should include legal, IT, communications, HR, privacy, and executive leadership roles. It must be reviewed and endorsed by the board, and regularly tested through tabletop exercises.

2. Pre-engaged external advisors

Organizations should retain trusted external counsel, cybersecurity firms, and crisis communications specialists in advance. These advisors must be familiar with the organization’s business and integrated into the crisis response plan.

3. Board readiness and role clarity

Boards must understand their governance responsibilities in a cyber incident. Directors should know when to be briefed, how to engage and where the line lies between oversight and management intervention.

Final thoughts

A fast, confident, and coordinated response is not built in the moment: it is rehearsed. Canadian boards and leadership teams must prioritize breach preparedness now to protect enterprise value and public trust in the face of inevitable incidents.

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