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Incident Management: A Complete Introduction

By: Jasmin young
August 17, 2023

In the dynamic landscape of IT operations, incidents are bound to occur. Incident management is a structured and proactive approach to address and resolve these unexpected events promptly and effectively. It forms a crucial component of IT service management (ITSM), ensuring smooth operations and minimizing the impact of incidents on an organization’s productivity and customer experience.

In this post, we’ll cover the fundamentals of incident management, including what incident management entails, its life cycle and the challenges organizations might face. Additionally, we’ll explore the crucial role of incident management tools and technologies in improving incident detection and resolution. Let’s get started!

What Is Incident Management?

Incident management is a process within organizations that revolves around the systematic handling of unexpected events or incidents. These incidents encompass a broad spectrum of issues, including network outages, software malfunctions, hardware failures, security breaches and service disruptions. The primary aim of incident management is to promptly detect and resolve issues, restoring normal service operations and mitigating any negative impact on business continuity. Incident management focuses on managing the entire lifecycle of these incidents, from detection to resolution, with the primary goal of minimizing their impact.

To understand incident management better, let’s look at its life cycle.

The Life Cycle of Incident Management

Incident Identification

The incident management life cycle begins with the identification of potential incidents. This critical phase involves continuous monitoring of the organization’s IT environment. You can identify an incident using several indicators:

  • Events: Events refer to any observable occurrence. They can include routine activities, system log entries, user interactions and even automated processes. Not all events are a problem or require immediate action.
  • Alerts: Alerts are notifications generated by monitoring systems or tools that indicate a potential issue or abnormality within the IT infrastructure. These alerts act as early warning signals, providing real-time information about specific events or conditions that may require attention. Alerts are generally based on predefined thresholds or conditions set by IT administrators or system operators.
  • Alarms: Alarms are more critical and urgent notifications triggered when specific conditions or events reach a severity level that demands immediate attention. Alarms are typically generated when a significant incident or outage occurs and often indicate a potential disruption to services or systems.

Categorization & Prioritization

Once an incident is reported, it’s essential to categorize and prioritize the incident based on its severity and potential impact on business operations. Proper categorization ensures that resources are allocated efficiently to address critical incidents first.

Investigation & Diagnosis

This stage involves a thorough investigation and diagnosis of the underlying causes of the incident. The goal is to identify the root cause of the issue to understand how best to resolve it and prevent its recurrence in the future.


The incident management team works diligently to resolve the incident within defined service level agreements (SLAs). If an incident requires specialized expertise or exceeds the team’s capabilities, the incident may be escalated to higher-level support teams or subject matter experts to ensure a timely resolution.

Documentation & Closure

After successfully resolving the incident, the incident is closed, and the team documents all the actions taken during the resolution process. This documentation serves as a valuable reference for future incidents, aids in post-incident analysis and contributes to continuous improvement efforts.

Now that you understand what incident management involves, let’s go through a hypothetical example to illustrate how it works.

What Is an Example of Incident Management?

Let’s consider a real-world scenario where a financial institution is using a complex network infrastructure to manage online banking services. One day, customers start reporting that they’re unable to access their accounts and perform transactions online. This sudden disruption indicates a potential incident that needs immediate attention.

Incident Identification

The incident is identified through real-time monitoring, alarms and customer reports. Of particular note, if your IT team first hears about an incident from customers, you might need better monitoring tools or a review of your tool’s configurations. 

Categorization & Prioritization

Once the incident is identified, the incident management team categorizes the incident as a “critical service outage” due to its significant impact on business operations and customers. The team prioritizes it, ensuring immediate attention and allocation of resources.

Investigation & Diagnosis

The incident management team initiates an investigation to determine the root cause of the online banking unavailability. They analyze network and server logs, conduct hardware health checks and find that the root cause is a hardware failure.


The IT operations (ITOps) team quickly switches over to redundant hardware systems to ensure uninterrupted service delivery, while the faulty hardware is being repaired or replaced. Simultaneously, the ITOps or the infrastructure team coordinates with data center personnel to replace or repair the faulty hardware component that’s causing the disruption. After the hardware is replaced or repaired, the ITOps and incident management teams rigorously test and evaluate the systems. Once they confirm that the issue is successfully resolved, the ITOps team switches back to the repaired or replaced hardware and restores the most recent backup to minimize any potential data loss. If there’s a need for sync up between the backup systems and the replaced or repaired systems, the ITOps team proceeds with it. 

Documentation & Closure

After successfully restoring online banking services, the incident is formally closed, and customers are informed of the resolution. A post-incident analysis is conducted to identify areas for improvement and to prevent similar incidents in the future. The team documents all actions taken during the incident resolution, including details of the hardware failure, steps taken to restore services and lessons learned for future reference.

Why Is Incident Management Important?

Incident management’s significance cannot be overstated as it is the bedrock of a robust infrastructure. By promptly identifying and resolving incidents, incident management minimizes the impact on critical systems, data and an organization’s reputation. In this section, we’ll delve into the importance of incident management and the benefits it provides to organizations of all sizes.

Swift Incident Response

Incident management ensures that an organization can respond swiftly and effectively to incidents. The ability to identify and contain incidents promptly can significantly reduce its impact.

Minimizing Downtime & Disruptions

Incidents can disrupt business operations, leading to downtime that can result in significant financial losses. Incident management helps minimize downtime by facilitating a structured approach to using backups and restoring affected systems and services. This in turn allows businesses to resume normal operations with minimal disruption to their customers and stakeholders.

Enhancing IT Infrastructure Resilience

Incidents in IT environments are inevitable, but incident management helps organizations build resilience to handle unforeseen challenges. Through proactive monitoring and prompt incident response, IT teams can identify weaknesses in the infrastructure, address vulnerabilities and implement robust solutions to prevent recurrent incidents. A structured, proactive approach strengthens the overall resilience of the IT infrastructure, making it better equipped to handle future incidents effectively.

Complying with SLAs & Regulatory Requirements

Many organizations have SLAs with customers and stakeholders that outline the expected levels of service availability and response times. Effective incident management ensures that organizations adhere to these SLAs, meet their service commitments and avoid penalties for noncompliance. Additionally,  incident management helps organizations in industries with strict regulatory requirements maintain compliance with data protection and security standards.

Safeguarding Reputation & Customer Trust

An organization’s reputation is its most valuable asset, and slow incident response can severely damage a company’s reputation. By promptly and transparently handling incidents, organizations can demonstrate their commitment and build trust with their customers, partners and stakeholders.

Learning & Continuous Improvement

Incident management is not just about reacting to incidents. It’s also about learning from each incident to enhance future resilience. Post-incident analysis and reporting enable organizations to identify weaknesses in their infrastructure and response procedures. These insights empower organizations to continuously improve their practices and stay one step ahead.

Mitigating Financial Losses

The longer an incident remains unresolved, the more it can impact an organization’s operational costs. Incident management’s timely response and resolution help minimize the duration of incidents, leading to cost savings in terms of reduced downtime, fewer resources required for incident resolution and improved operational efficiency.

By being proactive and prepared to handle incidents, organizations can protect their critical assets, maintain business continuity, comply with agreements and regulations, preserve their reputation and ultimately safeguard future success.

While incident management brings a lot of benefits, it also comes with its fair share of challenges.

Challenges with Incident Management

In this section, we’ll explore some of the common challenges faced by organizations when implementing and executing incident management practices.

Alert Fatigue & an Overwhelming Volume of Incidents

Modern IT environments generate a massive volume of alerts, often inundating IT teams with an overwhelming amount of data. Alert fatigue can make it challenging to identify critical incidents amid the noise of routine alerts. Sorting through a large number of incidents can lead to delayed responses and hinder the timely resolution of high-priority issues.

Lack of Centralized Incident Monitoring & Reporting

In organizations with distributed IT infrastructure and multiple monitoring tools, incident management can become fragmented and decentralized. A lack of centralized incident monitoring and reporting makes it difficult for IT teams to get a holistic view of overall IT health and identify interconnected incidents. As a result, incident coordination and collaboration may suffer, leading to inefficiencies in resolving incidents.

Inadequate Incident Categorization & Prioritization

Effective incident management relies on accurate categorization and prioritization of incidents based on their severity and impact on business operations. However, organizations may struggle with defining clear criteria for incident categorization, leading to inconsistent or inaccurate prioritization. This lack of clarity can result in critical incidents being overlooked while less urgent issues receive disproportionate attention.

Limited Visibility into Root Causes

In complex IT environments, uncovering the underlying causes of incidents can be challenging. IT teams may face difficulties in tracing incidents back to their origins, hindering the ability to address the root cause and potentially leading to recurring incidents.

Communication & Coordination Challenges

Incident management often involves multiple stakeholders, including IT teams, management, customer support and vendors. Effective communication and coordination among these stakeholders are essential for timely incident resolution. However, miscommunication, delays in updates or lack of collaboration tools can impede the incident management process and prolong incident resolution times.

Balancing Incident Resolution with Routine IT Tasks

IT teams are responsible not only for incident management but also for various routine IT tasks, such as system maintenance, updates and other projects. Balancing incident resolution with these routine tasks can be demanding, especially during peak incident periods. The pressure to manage incidents while handling routine responsibilities can lead to increased stress and potential errors.

Lack of Incident Management Documentation & Post-Incident Analysis

Proper documentation of incident details and the actions taken during the resolution process is critical for post-incident analysis and continuous improvement. However, organizations may struggle to maintain comprehensive incident management documentation. This lack of documentation hinders the ability to learn from past incidents and implement preventive measures effectively. Although incident management has its challenges, strategizing and following some best practices can help you get through the challenges smoothly and help create an effective incident management system.

Incident Management Best Practices

Incident management is a challenging but indispensable aspect of a comprehensive cybersecurity strategy. By understanding and addressing these challenges, organizations can bolster their incident management capabilities. Here are some best practices you should consider.

Establish a Well-Defined Incident Response Plan

A well-defined incident response plan forms the foundation of effective incident management. This plan should be tailored to the organization’s specific needs and should consider factors such as the size of the organization, the nature of its business and the criticality of its systems. The incident response plan should outline roles, responsibilities, communication channels, escalation procedures and a step-by-step incident handling process. Regularly review and update the plan to adapt to changing threats and organizational requirements.

Develop an Incident Classification Framework

Organizations should establish a clear incident classification framework to categorize incidents based on severity and impact. This framework helps prioritize incident response efforts, ensuring that critical incidents receive immediate attention while minor incidents are appropriately managed without using too many resources.

Conduct Regular Incident Response Drills and Training

Incident response drills and simulations are invaluable for testing the organization’s incident management capabilities and familiarizing the incident response team with their roles and responsibilities. These drills also identify areas of improvement in the incident response plan and help build a confident and efficient incident response team through training.

Implement Centralized Incident Monitoring

Centralize incident monitoring using an integrated IT monitoring and management tool that consolidates alerts and incidents from various systems. A centralized approach provides a comprehensive view of the entire IT infrastructure, enabling faster incident detection and response.

Maintain Comprehensive Incident Documentation

Document all incident details, actions taken and resolutions for each incident. Comprehensive documentation aids in post-incident analysis, compliance reporting and continuous improvement efforts.

Monitor Incident Trends & Patterns

Analyze incident data to identify recurring trends and patterns. Understanding common incident triggers allows organizations to proactively address underlying issues and reduce the frequency of incidents.

Stay Updated with Industry Best Practices & Technologies

Keep abreast of the latest incident management best practices, technologies and industry standards. Continuous learning ensures that incident management strategies align with evolving IT environments and security challenges.

Collaborate & Communicate Effectively

Establish clear lines of communication among all stakeholders involved in incident management, including IT teams, executives, legal personnel and external partners. Effective communication ensures that everyone is aware of their roles during an incident and helps coordinate response efforts smoothly.

Adopting these best practices can significantly enhance an organization’s incident management capabilities and resilience against cybersecurity threats.

Incident Management Tools & Technologies

It’s important to leverage the right tools and technologies to enhance incident management capabilities. Here are essential tools and technologies to help.

Network Monitoring Systems

Network monitoring systems are the backbone of incident management, providing real-time visibility into the health and performance of an organization’s network infrastructure. These systems continuously monitor network devices, servers and applications, generating alerts and notifications when anomalies or performance issues are detected.

IT Service Management (ITSM) Platforms

ITSM platforms like ServiceNow, JIRA Service Desk and BMC Remedy enable organizations to streamline processes. These platforms facilitate incident ticketing, tracking and resolution, ensuring that incidents are handled systematically within defined SLAs.

Incident Tracking & Collaboration Tools

Incident tracking and collaboration tools promote effective communication and collaboration among IT teams during incident resolution. Platforms like Slack and Microsoft Teams enable real-time communication, facilitating quick updates and coordinated efforts to address incidents efficiently.

Automation & Orchestration Solutions

Automation and orchestration solutions such as Ansible, Puppet and Chef help IT teams automate routine and repetitive incident response tasks. By automating incident acknowledgment, categorization and resolution steps, these tools reduce manual effort, enhance response times and free up resources for more critical tasks.

Event Correlation & Log Management Systems

Event correlation and log management systems such as Splunk and LogRhythm aggregate and analyze log data from various IT systems, enabling IT teams to identify patterns and trends.

Incident Response Playbooks & Runbooks

Incident response playbooks and runbooks provide predefined procedures and workflows for responding to specific types of incidents. These documents serve as valuable references during incident handling, ensuring a consistent and organized approach to incident resolution. Resilient (IBM Security), Demisto (Palo Alto Networks) and Phantom (Splunk) are some of the popular options.

Mobile Incident Management Apps

Mobile incident management apps such as PagerDuty Mobile App, Opsgenie Mobile App and ServiceNow enable IT teams to stay connected and respond to incidents even when they’re away from their desks. These apps provide real-time incident alerts, status updates and incident management capabilities on mobile devices.

Threat Intelligence Feeds

Threat intelligence feeds keep IT teams informed about emerging threats and vulnerabilities. By integrating threat intelligence with incident management tools, organizations can proactively address potential incidents before they escalate.


Typical network monitoring solutions do not focus on incident management. Netreo distinguishes itself from these tools through its robust incident management capabilities in addition to what popular network monitoring tools offer. Netreo takes an incident-driven approach and provides various features, including the following:

  • Incident management rules that validate and prioritize notifications
  • Device auto-discovery inventories and identifies systems and devices you need to monitor (or not)
  • Anomaly thresholds that identify only out-of-the-ordinary behavior from key devices and distinguish them from predictable spikes to reduce false positives, therefore reducing alert fatigue and improving troubleshooting and remediation processes

Netreo’s incident management integrates seamlessly with various solutions. This integration facilitates efficient incident ticketing, tracking and resolution, aligning IT operations with business needs. Netreo’s emphasis on properly managing incidents sets it apart in the IT infrastructure monitoring landscape.


Incident management is not just a reactive approach; it’s a proactive strategy that empowers organizations to detect, respond to and mitigate incidents effectively. By leveraging incident management tools and technologies, organizations can consolidate alarms and events, prioritize incidents and streamline incident response workflows. Using tools like Netreo reduces alert fatigue, which smooths the incident management process.

Does this sound useful? Do you have unique alerting needs? If so, contact a member of our team today to discuss your situation.

This post was written by Omkar Hiremath. Omkar is a cybersecurity team lead who is enthusiastic about cybersecurity, ethical hacking and Python. He is keenly interested in bug bounty hunting and vulnerability analysis.

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