If readers want to examine an interesting example of how to manage a data loss, have a look at what happened at the London Borough of Barnet. A data loss involving 9,000 children followed a burglary of the home of a member of staff. The loss included the council’s computer equipment (a laptop), CD Roms and memory sticks, along …
How it should be done, no?
Makes sense to me: as soon as you're aware of a problem, cop to it and take whatever action you can. An improvement in their PR capabilities at least.
Obviously, not as good as making sure there's no unencrypted personal data lying around in the first place, but better than hiding behind a "no comment" wall for a bit.