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The most appropriate initial step upon discovering a loss of proprietary information is to recover the material. This action is critical as it addresses the immediate concern of limiting further damage and securing any remaining information. By attempting to recover the lost proprietary information, individuals can also assess the extent of the loss and gain insight into how it occurred. This recovery effort might involve various strategies, such as retrieving backups, leveraging digital forensics, or reaching out to any individuals or groups who may have misplaced or mismanaged the information.

Taking immediate action to recover the material lays the groundwork for subsequent steps, such as notifying law enforcement or informing stakeholders. These actions are typically necessary, but they follow the priority of addressing the loss directly. Conducting an employee meeting could also be a necessary follow-up to discuss prevention strategies and outline the steps taken moving forward, but it's secondary to the immediate need for recovery.