Incident Response Policy

Purpose and Scope

This Incident Response Policy establishes a framework for detecting, reporting, assessing, and responding to information security incidents at Code Town. It aims to minimize the impact of security incidents on business operations, data integrity, and stakeholder trust.

This policy applies to all employees, contractors, and third parties who have access to Code Town’s information systems and data.

Policy Statements: Our Commitments

The following policy statements outline how we implement and manage our incident response processes to protect our information assets. They cover everything from incident detection to post-incident review.

Incident Response Framework

Code Town will implement a structured incident response framework that includes the following phases:

• Preparation: Establishing and maintaining the tools, processes, procedures, and teams required to respond to incidents.
• Identification: Detecting and reporting potential security incidents through monitoring systems and user reports.
• Containment: Isolating affected systems to prevent further damage.
• Eradication: Identifying and removing the root cause of the incident.
• Recovery: Restoring systems to normal operations and verifying that the incident has been fully resolved.
• Lessons Learned: Conducting a post-incident review to identify improvements in the incident response process.

Relevant Definitions

	Description	Examples
Events	An observable occurrence in a system or network. Events include any identifiable occurrence that may have implications for system security. Not all events are security-relevant.	A file is created or deleted on a server. A network connection is initiated from one machine to another. A firewall blocks an incoming connection attempt
Indications	Specific data points or patterns that suggest or give evidence of a particular security event or potential security incident. Indications are often used to detect malicious activity.	Unexpected or unusual outbound data transfers during off-peak hours. Multiple login failures from a foreign IP address within a short period. A user or system suddenly querying large amounts of data that do not match previous usage patterns
Incidents	An adverse event in an information system or network that either threatens the confidentiality, integrity, or availability of the system or the data it contains. Incidents often, but not always, arise from malicious activity.	Unauthorized disclosure of sensitive data. Unauthorized change or destruction of sensitive data. A Denial-of-Service (DoS) attack causing a critical service to become unreachable

Incident Response Procedures

To support the incident response framework, Code Town will maintain detailed incident response procedures to guide the organization through each phase of incident handling. These procedures must include:

• Step-by-step response actions: Clearly defined steps for handling different types of security incidents, such as malware infections, data breaches, or denial-of-service attacks.
• Roles and responsibilities: Documentation of the specific roles involved in incident response and the actions each role must take during an incident.
• Escalation procedures: Defined criteria for escalating incidents based on their severity and potential impact, ensuring that the appropriate level of management and technical expertise is involved.
• Communication protocols: Guidelines for internal and external communications during incidents, including notifications to affected parties, regulatory bodies, and stakeholders.
• Incident documentation templates: Templates for logging and documenting incident details, actions taken, and evidence collected throughout the response process.

The incident response procedures must be reviewed and updated regularly to reflect changes in technology, threat landscape, and organizational structure.

The Incident Response Team (IRT) will ensure that these procedures are accessible to all relevant staff and that regular training is conducted to familiarize teams with their roles and responsibilities during incidents.

Incident Identification and Reporting

Logs, alerts, and other monitoring tools will be used to detect potential security incidents in real time. Employees must report any suspicious activity or potential security incidents to the IT Security Team or Incident Response Team immediately.

Incidents will be classified based on their severity, such as:

Classification	Description
Critical	Significant data loss, financial loss, or system outages
High	Limited data loss, unauthorized access, or service disruptions
Medium	Low-risk security issues that do not impact critical systems
Low	Minor incidents with no impact on system integrity or availability

All incidents, regardless of severity, must be logged and documented for further analysis and reporting.

Incident Containment and Eradication

Depending on the severity of the incident, short-term and long-term containment actions will be taken based on the relevant Incident Response Plan.

Once the incident is contained, the root cause of the incident will be identified and removed.

All actions taken during containment and eradication must be documented for review.

Recovery and Restoration

After the incident has been contained and eradicated, Code Town will work to restore normal operations based on the relevant Incident Response Plan. This includes:

• System recovery: Restoring systems and data from clean backups.
• Verification: Testing and verifying that affected systems are functioning normally and that the vulnerability or threat has been eliminated.
• Monitoring: Continuing to monitor affected systems for any signs of residual threat or recurrence.

During the recovery phase, communication with affected users and stakeholders will be maintained to ensure transparency and minimize operational disruptions.

Post-Incident Review and Lessons Learned

A post-incident review will be implemented following the resolution of an incident, including:

• Root cause analysis: Understanding how the incident occurred and identifying any weaknesses in systems, processes or procedures.
• Action plan: Developing a plan to address any identified gaps, such as implementing additional security controls, improving monitoring capabilities, or updating policies and procedures.
• Documentation: All incidents, responses, and lessons learned will be documented and stored in the company’s incident log for future reference.

A post-incident report will be created and shared with senior management to drive continuous improvement.

Compliance and Enforcement

Compliance with this policy is mandatory for all employees, contractors, and third parties with access to Code Town’s data.

In rare cases, business needs, local laws, or regulations may require exceptions. Management will approve any exceptions and define alternative solutions.

Non-compliance may lead to disciplinary action, including termination, as per Code Town’s policies.

Policy Review and Maintenance

This policy will be reviewed annually or when significant changes occur to maintain its continuing suitability, adequacy, and effectiveness.

Reviews must consider changes in the regulatory landscape.

Appendix A: Template for Incident Response Process

Step 1: Triage

Objective: Determine if the indication is a legitimate threat or a false alarm.

1. The on-duty engineer receives the indication.
2. Analyze logs, system behaviors, and context related to the indication.
3. Check against known behaviors, patterns, and indicators of compromise.
4. If additional expertise or resources are required during this phase, the engineer can consult with peers or utilize threat intelligence platforms.

Step 2: Validation

Objective: Establish whether the indication points to a valid incident or not.

1. If the indication is validated, it is immediately promoted to a security incident and the Security Officer is notified, providing:
   • A brief summary of the incident
   • Any immediate risks or concerns
   • Preliminary findings and scope (if known)
   • Move to the “Team Formation” phase.
2. If the indication is determined to be a false alarm:
   • Document the details of the indication, reasons for dismissal, and any supporting evidence.
   • Determine and address the root cause of the false indication to prevent its recurrence.
   • Remediate any system or process issues that led to the false alarm.
   • Report the completion and findings to the appropriate stakeholders
   • End the incident response process

Step 3: Team Formation

Objective: Organize a team of experts to handle the incident in an efficient manner.

1. Upon notification, the Security Officer assesses the situation and determines the required expertise.
2. The Security Officer assembles a temporary incident response team.
3. The incident response team commences work, starting with containment of the incident.

Step 4: Containment, Eradication & Resolution

Objective: Contain, eradicate, and recover from the incident.

1. Containment: Prevent the incident from causing further damage or spreading.
2. Eradication: Remove the root cause of the incident.
3. Recovery: Restore and validate system functionality for business operations to resume. Monitor for any signs of weaknesses that could be exploited again.
4. Document all actions taken during this phase.

Step 5: Post-Incident Review

Objective: Review the incident, identify lessons learned, and improve future responses.

1. Once the incident is resolved, the Security Officer convenes a postmortem meeting with the incident response team.
2. Discuss:
   • What happened?
   • What was done to respond?
   • What could have been done better?
   • What can be improved in terms of processes, communication, tools, etc.?
3. Document the findings and recommendations.
4. Disseminate the postmortem report to stakeholders and ensure that recommended improvements are implemented.