In the private debt market, it is important for lenders to consider the impacts of increasingly sophisticated and financially impactful data breaches. A primary concern for lenders is that a borrower will expend capital addressing cyber liabilities that could otherwise be used to service their debt or to grow the enterprise, potentially resulting in financial defaults. In a two-part guest article series, Proskauer partners Ryan P. Blaney, Bharat Moudgil and Evan Palenschat discuss considerations to prevent and mitigate the effects of a borrower’s cyber incident. This second article covers how to prepare for and address a borrower’s breach. The first article addressed the cost of breaches, why vigilance is urgent and proactive steps to take to assess a borrower’s preparedness. See “Cyber Breach Response Preparedness and Factors When Outsourcing the CTO Function (Part Two of Two)” (Jan. 7, 2020).