Data Breaches Aren’t Just an IT Problem Anymore. Here’s Why Every Team Needs to Be Ready.

Modern data breach regulations have collapsed the traditional recovery process into a 72-hour pressure cooker. Here’s how you need to prepare.

By Chongwei Chen | edited by Chelsea Brown | Jan 20, 2026

Opinions expressed by Entrepreneur contributors are their own.

Key Takeaways

• If you experience a data loss incident today, you have only 72 hours to notify the authorities and the impacted users. You must also clarify what happened and what you’re doing to rectify it.
• This means data breaches aren’t just an IT problem anymore. It’s now an all-hands-on-deck situation where legal, PR and leadership teams all need to get involved as well.
• Quick recovery processes that allow for definitive impact assessment can serve as a competitive advantage. You gain customers’ trust and land in the good books of regulators.

Dealing with a data loss incident is no longer the exclusive purview of an IT team in an organization. To put the issue in context, if your organization encounters a data breach incident today, you have only 72 hours, not just to notify the authorities, but also to notify users who have been impacted. Additionally, you need to clarify what has happened and what you are doing to rectify the situation.

A data loss incident today becomes an all-hands-on-deck situation where legal, PR, IT and leadership teams all need to get involved. Now, if your organization has not adapted to this new normal, you are probably one incident away from a rude and costly wakeup call.

Related: Data Loss Could Destroy Your Company. These Best Practices Will Protect You.

The regulatory environment has witnessed a sea change

Over the last ten years or so, the regulatory environment related to data protection has shifted drastically. The European Union was one of the first of the blocks, rolling out the trailblazing GDPR act, which prescribes a strict no-nonsense rule mandating disclosure of any data loss incident to authorities within a 72-hour window.

Others, like CCPA and HIPAA, have followed suit, and suddenly, companies were looking at a staggering challenge where they needed to recover from a data loss incident and also simultaneously report the scope and related aspects to authorities. Compliance failures can lead to astronomical fines, up to 4% of global revenues in the case of GDPR. In the case of large corporations, such fines can run into several million dollars.

Keeping an eye on the future is equally important, as further regulations are expected to cover emerging fields like AI oversight and growing emphasis on identity fortification. Several state-level laws are under discussion in the USA, which are likely to include broader definitions like sensitive data and focus on data minimization.

Balancing impact assessment with accurate reporting and recovery speed

The classical approach to a data breach scenario involved a very structured path. IT teams would start by containing the threat and investigating the scope of impact. Next, they would thoroughly recover all data and get the systems back online. Thereafter, the entire report and root cause analysis would be shared with key stakeholders.

However, under the new stringent compliance norms, this methodology is dead on arrival. Regulators are technically breathing down your necks to know what you have found out within 72 hours. While you are working on the impact assessment, accurate reporting is a key expectation.

You do not want to share half-baked information with the regulators and invite scrutiny. Even if your operational recovery process is underway, they expect you to inform those impacted by the adverse event within 72 hours. Suddenly, recovery speeds have also become a primary concern. Balancing all three different asks requires a well-thought-out strategy.

Related: What Every Business Leader Must Know About Data Management to Avoid a Compliance Nightmare

Getting everyone on board — from IT teams to legal counsels and leadership

When we are looking at a data breach, companies need to get everyone involved from the start. One cannot wait for IT teams to sort things out and do a thorough impact assessment before reports are sent to the leadership and legal teams.

In fact, legal counsel should be called into the crisis room right away from the moment a data loss incident has been noticed. Given the complexity of various compliance norms, large organizations may also need to keep specialized law firms on retainers for handling data breach scenarios despite having general counsels at hand.

Time to clarity becomes a key objective, and leadership should get the best possible advice in time to make statements that can be defended in a court of law. That apart, your PR teams and leadership also need to work in sync to salvage the company’s image during a crisis.

Building a competitive edge through trust, powered by quick recovery

Increasingly forward-thinking technology leaders are realizing that quick recovery processes that allow for definitive impact assessment can serve as a competitive lever. Imagine a data loss incident in your organization that you could assess quickly and notify users well in time within compliance requirements. Club this with an efficient and quick recovery, and you have suddenly gained the trust of your customers and have landed in the good books of regulators.

Customers tend to notice companies that are transparent and can quickly recover from a data loss event. The contrast becomes sharper if any of your peers seem to struggle in a similar situation. Invariably, recovery speed becomes a very important strategic differentiator that can impact the growth path of many companies.

Related: The 3-Phase Framework for Turning a Cyberattack Into a Strategic Advantage

Compliance mandates related to data protection are not going away anytime soon; instead, with the AI bandwagon joining the fray, they are likely to expand in the coming years. Slow recovery protocols, harping on thoroughness, are well past their sell-by date.

Organizations should treat the challenging regulatory environment as an opportunity to revamp their contingency protocols and work towards compliance as a strategic objective.

Key Takeaways

• If you experience a data loss incident today, you have only 72 hours to notify the authorities and the impacted users. You must also clarify what happened and what you’re doing to rectify it.
• This means data breaches aren’t just an IT problem anymore. It’s now an all-hands-on-deck situation where legal, PR and leadership teams all need to get involved as well.
• Quick recovery processes that allow for definitive impact assessment can serve as a competitive advantage. You gain customers’ trust and land in the good books of regulators.

Dealing with a data loss incident is no longer the exclusive purview of an IT team in an organization. To put the issue in context, if your organization encounters a data breach incident today, you have only 72 hours, not just to notify the authorities, but also to notify users who have been impacted. Additionally, you need to clarify what has happened and what you are doing to rectify the situation.

A data loss incident today becomes an all-hands-on-deck situation where legal, PR, IT and leadership teams all need to get involved. Now, if your organization has not adapted to this new normal, you are probably one incident away from a rude and costly wakeup call.