Following an internal audit at a mid-sized software development firm, it was discovered that several...

Comprehensive and Detailed Explanation (ECIH-aligned):

This scenario represents a failure in the Preparation phase of the Incident Handling and Response (IH&R) lifecycle as defined by the EC-Council ECIH curriculum. Preparation focuses on establishing policies, procedures, standards, and awareness programs that define how systems and data must be used and protected. In this case, employees were sharing credentials via unauthorized channels because the organization failed to provide explicit rules governing acceptable communication practices.

Option C is correct because establishing defined protocols for approved digital channels directly addresses the root cause. ECIH emphasizes that organizations must define acceptable use policies, secure communication standards, and data handling procedures before incidents occur. These controls reduce the likelihood of human error and insider misuse by setting clear expectations and enforceable boundaries.

Option A relates to physical surveillance risks, which are unrelated to credential sharing. Option B is a recovery-focused control and does not prevent misuse. Option D is a detection mechanism that cannot compensate for missing governance controls.

By defining approved channels and educating users on their proper use, organizations significantly reduce the probability of credential leakage and insider-driven incidents, fulfilling a core ECIH preparation requirement.