DOUGLAS DYNAMICS, INC 10-K Cybersecurity GRC - 2024-02-27

Page last updated on April 11, 2024

DOUGLAS DYNAMICS, INC reported their cybersecurity risk management and governance process in a yearly 10-K filed on 2024-02-27 16:15:10 EST.

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10-K filed on 2024-02-27

DOUGLAS DYNAMICS, INC filed an 10-K at 2024-02-27 16:15:10 EST
Accession Number: 0001437749-24-005713

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Item 1C. Cybersecurity.

Item 1C. Cybersecurity The Company s Board of Directors (the Board ) recognizes the critical importance of maintaining the trust and confidence of our customers, clients, business partners and employees. The Board is actively involved in oversight of the Company s risk management program, and cybersecurity represents an important component of the Company s overall approach to enterprise risk management ( ERM ). The Company s cybersecurity policies, standards, processes, and practices are fully integrated into the Company s ERM program and are based on recognized frameworks established by the National Institute of Standards and Technology, the International Organization for Standardization and other applicable industry standards. In general, the Company seeks to address cybersecurity risks through a comprehensive, cross-functional approach that is focused on preserving the confidentiality, security and availability of the information that the Company collects and stores by identifying, preventing and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur. Management’s philosophy on cybersecurity is to be vigilant in protecting the Company and its constituents through robust investments and employee awareness to aid in the prevention, detection and mitigation of cyber threats, while recognizing that not all threats are preventable. Risk Management and Strategy As one of the critical elements of the Company s overall ERM approach, the Company s cybersecurity program is focused on the following key areas: Governance : As discussed in more detail under the heading Governance, The Board s oversight of cybersecurity risk management is supported by the Audit Committee of the Board (the Audit Committee ), which regularly interacts with executive leadership, the Company s ERM function, and the Company s Vice President of Information Technology. Collaborative Approach : The Company has implemented a comprehensive, cross-functional approach to identifying, preventing and mitigating cybersecurity threats and incidents, while also implementing controls and procedures that provide for the prompt escalation of certain cybersecurity incidents so that decisions regarding the public disclosure and reporting of such incidents can be made by management in a timely manner. Technical Safeguards : The Company deploys technical safeguards that are designed to protect the Company s information systems from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality and access controls, which are evaluated and improved through vulnerability assessments and cybersecurity threat intelligence. Incident Response and Recovery Planning : The Company has established and maintains incident response and recovery plans that address the Company s response to a cybersecurity incident, and such plans are tested and evaluated on a regular basis. Third-Party Risk Management : The Company maintains a comprehensive, risk-based approach to identifying and overseeing cybersecurity risks presented by third parties, including vendors, service providers and other external users of the Company s systems, as well as the systems of third parties that could adversely impact our business in the event of a cybersecurity incident affecting those third-party systems. Education and Awareness : The Company provides regular, mandatory training for personnel regarding cybersecurity threats as a means to equip the Company s personnel with effective tools to address cybersecurity threats, and to communicate the Company s evolving information security policies, standards, processes and practices. The Company engages in the periodic assessment and testing of the Company s policies, standards, processes and practices that are designed to address cybersecurity threats and incidents. These efforts include a wide range of activities, including audits, assessments, tabletop exercises, threat modeling, vulnerability testing and other exercises focused on evaluating the effectiveness of our cybersecurity measures and planning. The Company regularly engages third parties to perform assessments on our cybersecurity measures, including information security maturity assessments, audits and independent reviews of our information security control environment and operating effectiveness. The results of such assessments, audits and reviews are reported to the Audit Committee and the Board, and the Company adjusts its cybersecurity policies, standards, processes and practices as necessary based on the information provided by these assessments, audits and reviews. Governance The Board, in coordination with the Audit Committee, oversees the Company s ERM process, including the management of risks arising from cybersecurity threats. The Board and the Audit Committee each receive regular presentations and reports on cybersecurity risks, which address a wide range of topics including recent developments, evolving standards, vulnerability assessments, third-party and independent reviews, the threat environment, technological trends and information security considerations arising with respect to the Company s peers and third parties. The Board and the Audit Committee also receive prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed. On an annual basis, the Board and the Audit Committee discuss the Company s approach to cybersecurity risk management with the members of senior leadership, which includes the Company s Vice President of Information Technology. The Vice President of Information Technology, in coordination with executive leadership including our Chief Executive Officer ( CEO ), Chief Financial Officer ( CFO ), and Chief Human Resources Officer ( CHRO ), works collaboratively across the Company to implement a program designed to protect the Company s information systems from cybersecurity threats and to promptly respond to any cybersecurity incidents in accordance with the Company s incident response and recovery plans. To facilitate the success of the Company s cybersecurity risk management program, multidisciplinary teams throughout the Company are deployed to address cybersecurity threats and to respond to cybersecurity incidents. Through ongoing communications with these teams, the Vice President of Information Technology monitors the prevention, detection, mitigation and remediation of cybersecurity threats and incidents in real time and reports such threats and incidents to the Audit Committee when appropriate. The Vice President of Information Technology has been with the Company for over 25 years in various roles in information technology and information security. The Company s CEO, CFO and CHRO each hold undergraduate and graduate degrees in their respective fields, and each have over 25 years of experience managing risks at the Company and at similar companies, including risks arising from cybersecurity threats. Cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected or are reasonably likely to affect the Company, including its business strategy, results of operations or financial condition.

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