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What Small Businesses Need to Know About Reporting CUI Incidents

Blog|JAN 23, 2025|zero Comments

Todd J Crane

CEO

If your small business works on federal contracts, you’ve probably heard about the new rules coming down the pipeline for handling Controlled Unclassified Information (CUI). One of the biggest changes involves how you respond to and report cybersecurity incidents. It might sound intimidating, but with the right preparation, it’s entirely manageable—even for smaller teams with limited resources.

Here’s what you need to know about these new incident reporting requirements and how to stay ahead of them.


What Is Incident Reporting, and Why Does It Matter?

In simple terms, incident reporting is about notifying the government if something goes wrong with the sensitive information you’re handling. Let’s say your business experiences a cyberattack, like a phishing scam or malware infection, and it involves CUI. The government wants to know about it—quickly.

Under the new rules, you’ll likely have to report incidents within a short window (usually 72 hours). This gives federal agencies the chance to assess the damage and take action if needed. Reporting isn’t just a formality; it’s a way to protect national security and the sensitive projects you’re working on.


Why Small Businesses Struggle With Incident Reporting

Let’s be honest—incident reporting isn’t exactly top of mind for most small business owners. You’re juggling payroll, client work, and everything else that comes with running a business. But this process is critical if you’re handling CUI, and it’s important to understand the challenges ahead.

  1. You Need to Spot Problems Quickly
    Many businesses don’t have the tools or processes in place to detect cybersecurity threats right away. If a breach goes unnoticed, you could miss the reporting deadline entirely.

  2. It’s More Than Just a Heads-Up
    The government isn’t looking for a quick email saying, “We got hacked.” They need details—what happened, what kind of information was involved, and what steps you’re taking to fix it.

  3. You Have to Keep Evidence
    Preserving forensic evidence (think logs, emails, or other digital footprints) is a must. Mishandling this step could slow down investigations or raise questions about your compliance.

  4. It’s Scary to Admit a Problem
    No one likes telling a client—or in this case, the government—that something went wrong. But transparency is key. Failing to report could land you in much bigger trouble than the breach itself.


How to Get Ready for Incident Reporting

The good news? You don’t have to figure this out on your own. Here are some straightforward steps you can take to prepare:

Start With a Plan
Having a clear plan is half the battle. Think about who will handle reporting if something goes wrong. What’s the first thing they need to do? Write it down. This is your Incident Response Plan (IRP), and it’s your playbook for navigating a breach.

Use Technology to Your Advantage
You don’t need a massive IT department to monitor your systems for threats. Tools like endpoint protection or security monitoring software can help you catch problems early, giving you more time to act.

Train Your Team
Your employees are your first line of defense. Make sure they know how to spot phishing emails, avoid sketchy links, and report anything that seems off. A little training can go a long way in preventing problems before they start.

Understand What the Government Needs
Different agencies have slightly different reporting processes, so take the time to understand what’s expected. This way, you’re not scrambling to figure it out in the middle of a crisis.

Think About Evidence Now
When a breach happens, you’ll need to preserve the digital trail it leaves behind. Set up systems now to collect logs and other data that might be important later.


Why Small Businesses Shouldn’t Go It Alone

At Gray Beard Cybersecurity, we’ve worked with plenty of small businesses that felt overwhelmed by compliance requirements. That’s why we’re here—to help you create a plan that works for your business size and budget. Whether it’s setting up an incident response process or training your team, we’ll make sure you’re ready if something happens.

And the best part? You don’t need to be a tech expert. We’ll guide you through every step so you can focus on what you do best—running your business.


A Final Word

Incident reporting might sound like another complicated rule to follow, but it’s really about protecting your business and your clients. With a little preparation, you can turn it into an opportunity to show your professionalism and commitment to security.

If you’re feeling stuck or unsure about where to start, reach out to Gray Beard Cybersecurity. We’ll help you build a system that keeps your business and your federal contracts secure.

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