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Cyber Incidents: Why General Counsels Are Critical to Navigating the Storm

01.08.2025

In today’s hyperconnected world, cyberattacks are no longer a question of if but when. For general counsels (GCs), the responsibility extends far beyond legal risk management - it’s about guiding the organization through the multifaceted response and recovery journey.

A successful response to a cyber incident requires a well-coordinated effort across the organization, and the GC sits at the intersection of legal, regulatory, operational, and reputational considerations. With increasing regulatory scrutiny, shareholder activism, and customer expectations, the GC’s role has become more pivotal than ever.

Below are some areas that GCs should consider during and after a cyber incident. While not exhaustive, it is a good start.

The Five Phases of Cyber Incident Legal Response

1. Immediate Response and Containment

The clock starts ticking as soon as the incident is discovered. Legal oversight ensures that the response team preserves evidence, protects privilege, and communicates effectively—both internally and externally.

2. Regulatory Compliance and Notification

Understanding and navigating breach notification laws across jurisdictions is critical. Whether it’s a state AG, the SEC, or international regulators like the ICO under GDPR, or state laws such as CCPA, timely and accurate disclosures are key to avoiding additional penalties.

3. Internal Investigation and Root Cause Analysis

GCs must lead the effort to uncover the "what, how, and why" of the incident while safeguarding privilege and preparing for potential litigation or regulatory scrutiny. This phase requires close collaboration with cybersecurity and forensic experts.

4. Stakeholder Communication and Reputational Management

From the boardroom to the courtroom to the customer, GCs play a central role in ensuring transparent, consistent, and legally sound communication during a crisis. This phase shapes trust and mitigates long-term reputational harm.

5. Strengthening Governance and Long-Term Resilience

Once the dust settles, the GC’s role shifts to embedding lessons learned into the company’s cybersecurity governance framework, regulatory strategy, and overall risk management approach. Cyber resilience is a marathon, not a sprint.

Some Additional Thoughts

For publicly traded companies, the stakes are even higher. GCs must juggle securities law compliance, manage board expectations, and address shareholder concerns about fiduciary duties and material disclosures.

For venture-backed firms, the focus shifts to scaling security alongside growth, ensuring due diligence readiness for IPOs or acquisitions, and balancing investor-driven priorities with long-term resilience.

The Bottom Line

Whether you’re a GC, board member, or part of the executive leadership team, now is the time to ask - Is your organization prepared to handle the complex legal, regulatory, and reputational challenges of a cyber incident?

Over the years, I have worked with many organizations to increase their cyber-preparedness and have helped to develop checklists and incident response plans (IRP) customized to the needs, businesses, and structures of those organizations. 

If I had one takeaway, it would be that the time to consider and to integrate these concepts into your IRP and governance framework is now, not when the bullets start to fly.

In Part II of this post, I will explore some additional considerations for GCs.

Until then, stay safe!