Definition

A plan that provides financial support in the event of data breaches or cyber attacks. It covers costs related to restoring security and managing breaches.

What to consider

  • Determine the fund’s adequacy for potential breaches.
  • Review policies for fund allocation.
  • Keep the fund separate from general operating cash.

Real world scenarios

  • After a data breach, a company accessed its data breach response fund to cover notification and remediation costs.
  • An organization set aside funds in a data breach response account to mitigate future risks.
  • A business used its response fund to pay for external cybersecurity consulting following an incident.

Related terms

Insurance & Financial Protection