Modernizing Incident Response for MSPs: A Path to Improved Business and Security

Updated: 25/01/2025

Modernizing Incident Response for MSPs: A Path to Improved Business and Security

As MSPs continue to adapt to a constantly evolving cybersecurity landscape, the importance of modernizing incident response (IR) cannot be overstated. Beyond simply responding to threats, effective IR plans must incorporate comprehensive business continuity strategies, business impact assessments (BIA), and clear communication structures. In today’s complex digital environment, having a flexible, living IR platform is critical, not only for security but also for enhancing customer trust and business relationships.

The Evolution of Incident Response for MSPs

For many businesses, IR plans have traditionally been limited to technical recovery efforts focused on disaster recovery or business continuity. However, as the sophistication of cyber threats increases, IR plans must evolve beyond these technical aspects to include a broader business perspective.

Effective IR plans require a holistic approach that considers legal, contractual, and compliance obligations, particularly when dealing with data breaches or incidents like business email compromise (BEC). MSPs are increasingly expected to be proactive partners in guiding clients through these challenges, helping them prepare for, respond to, and recover from incidents in a way that minimizes business disruption and regulatory risk.

The Role of Business Impact Assessments (BIA)

One of the key elements discussed in modern IR planning is the importance of a Business Impact Assessment (BIA). The BIA helps businesses identify and prioritize critical systems and processes, ensuring that recovery efforts focus on what matters most to their operation. When an incident occurs, knowing which systems need to be restored first and understanding their dependencies is critical to a successful recovery.

Moreover, BIAs also help MSPs and clients plan for scenarios beyond just cyberattacks. Natural disasters, hardware failures, and other disruptions must also be considered in the IR planning process. By incorporating a BIA into the incident response framework, MSPs can provide a more complete, business-centered service that goes beyond technical recovery.

Beyond Templates: Why Incident Response Needs to Be Dynamic

In today’s complex business environment, having a static, document-based IR plan is no longer sufficient. An IR plan must be dynamic, continually updated to reflect changes in the business, regulatory landscape, and threat environment. A robust IR platform provides the flexibility needed to adapt and scale as required, offering MSPs and their clients a centralized place for ongoing management, real-time collaboration, and critical updates during incidents.

Unlike traditional Word documents or spreadsheets, a well-designed IR platform allows MSPs to:

• Assign roles and responsibilities clearly, ensuring that the right people have access to the right information.
• Automate workflows and timelines, ensuring that critical decisions are made within predefined timeframes.
• Manage internal and external communications securely, limiting the risk of sensitive information being mishandled.
• Track changes and improvements to the IR plan, ensuring it stays current and relevant.

This approach ensures that when an incident does occur, all parties—from internal teams to external breach counsel—are prepared, informed, and able to act quickly.

The Importance of Real-Time Collaboration and Communication

One of the most significant challenges in incident response is ensuring effective communication between all stakeholders. From IT teams and MSPs to legal counsel and cyber insurance providers, coordinating actions in real time is critical. Having a centralized IR platform can streamline this communication, reducing the risks associated with email or chat-based coordination, which can lead to confusion or delay.

Real-time collaboration tools allow for faster decision-making and provide visibility into how an incident is being handled at every stage. This is particularly important when handling incidents like BEC, where sensitive information may be exposed, and a quick, organized response is essential to limit damage.

Additionally, having response timers in place within the platform ensures that crucial tasks, such as notifying regulators or stakeholders, are completed within the required timeframes. This level of accountability and structure is vital for maintaining compliance and managing the overall incident.

Monetizing Incident Response and Tabletop Exercises

For MSPs, IR platforms and services are also a valuable opportunity for monetization. Offering IR as a service, along with regular tabletop exercises and business continuity planning, can enhance the value MSPs provide to their clients. By building these services into their offerings, MSPs can deepen their relationships with clients, offering peace of mind and proactive protection against future threats.

Tabletop exercises are especially important for ensuring that both MSPs and their clients are prepared for incidents before they occur. These exercises simulate real-world attack scenarios, allowing teams to practice their response in a controlled environment. By using a platform-based approach to tabletop exercises, MSPs can ensure that every aspect of the IR plan is tested, documented, and refined over time.

Incident Response and Legal/Compliance Concerns

MSPs need to be aware of the legal and compliance implications associated with cyber incidents. Breach notification requirements, data privacy regulations, and contractual obligations with third parties are all critical considerations in incident response. A well-structured IR platform not only helps manage these legal concerns but also ensures that sensitive information is properly handled and that communications are protected under attorney-client privilege.

For example, business email compromises often lead to questions about data ownership, regulatory compliance, and breach notification. An IR platform helps MSPs manage these complexities by ensuring that all communication is logged, accessible only to the relevant parties, and in line with legal standards. This not only protects the business but also mitigates the risk of legal action or compliance fines down the line.

The Future of Incident Response for MSPs

The future of incident response lies in proactive planning and continuous improvement. MSPs that adopt dynamic IR platforms and offer comprehensive services such as BIA, tabletop exercises, and real-time incident management will not only better protect their clients but also position themselves as leaders in the field.

By shifting the focus from simply fixing technical issues to ensuring business continuity and regulatory compliance, MSPs can create deeper, more valuable partnerships with their clients. As cyber threats become more sophisticated, the need for advanced, business-led incident response strategies will only continue to grow.

In conclusion, the modernization of incident response is not just about responding to cyber threats—it's about building a resilient business that can withstand disruptions and continue to thrive in an increasingly complex digital world.