Final answer:
An organization should have an incident response plan to mitigate potentially catastrophic threats, demonstrate preparedness for incidents, and enable prompt and effective response.
Step-by-step explanation:
An organization should have an incident response plan for several reasons. Firstly, it helps the organization mitigate potentially catastrophic threats. By formulating a plan to address these threats, the organization can be prepared to take action and minimize the impact of an incident. Secondly, having an incident response plan demonstrates that the organization takes security seriously and is prepared to respond to incidents. This can help build trust with stakeholders, such as customers, partners, and employees. Lastly, an incident response plan allows the organization to respond promptly and effectively to incidents. It outlines the steps to be taken and the roles and responsibilities of individuals involved, which can help ensure a coordinated and efficient response.