GRID DYNAMICS HOLDINGS, INC. 10-K Cybersecurity GRC - 2024-02-29

Page last updated on April 11, 2024

GRID DYNAMICS HOLDINGS, INC. reported their cybersecurity risk management and governance process in a yearly 10-K filed on 2024-02-29 16:08:26 EST.

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10-K filed on 2024-02-29

GRID DYNAMICS HOLDINGS, INC. filed an 10-K at 2024-02-29 16:08:26 EST
Accession Number: 0001628280-24-007971

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Item 1C. Cybersecurity.

ITEM 1C. CYBERSECURITY Risk Management and Strategy Managing Material Risks & Integrated Risk Management We have established policies and processes for assessing, identifying, and managing material risk from cybersecurity threats, and have integrated these processes into our overall risk management systems and processes. We routinely assess material risks from cybersecurity threats, including any potential unauthorized occurrence on or conducted through our information systems that may result in adverse effects on the confidentiality, integrity, or availability of our information systems or any information residing therein. We conduct regular risk assessments to identify cybersecurity threats, as well as assessments in the event of a material change in our business practices that may affect information systems that are vulnerable to such cybersecurity threats. These risk 32 assessments include identification of reasonably foreseeable internal and external risks, the likelihood and potential damage that could result from such risks, attack surface state and threat modeling, and the sufficiency of existing policies, procedures, systems, and safeguards in place to manage such risks. We perform internal audits of our cybersecurity procedures, review data access rights, conduct system vulnerability scans and prepare incident logs, alerts and threat reviews. We received ISO 27001 certification in 2014 and are subject to annual ISO 27001 standard compliance monitoring audits and periodic customer security audits. Following these risk assessments, we re-design, implement, and maintain reasonable safeguards to minimize identified risks; reasonably address any identified gaps in existing safeguards; and regularly monitor the effectiveness of our safeguards. We devote significant resources and designate high-level personnel, including our Chief Information Security Officer ( CISO ) who reports to our Chief Operations Officer ( COO ), to manage the risk assessment and mitigation process. As part of our overall risk management system, we monitor and test our safeguards and train our employees on these safeguards, in collaboration with human resources, IT, and a dedicated Grid University training department. Personnel at all levels and departments are made aware of our cybersecurity policies through multiple channels of communication and training. Engage Third-parties on Risk Management We engage third party auditors in connection with our risk assessment processes. These service providers assist us with designing and implementing our cybersecurity policies and procedures, as well as with monitoring and testing our safeguards at different levels. We require each third-party service provider to ensure that it has the ability to implement and maintain appropriate security measures, consistent with all applicable laws, to implement and maintain reasonable security measures in connection with their work with us, and to promptly report any suspected breach of its security measures that may affect our company. Risks from Cybersecurity Threats We have not encountered any cybersecurity incident that had any significant impact on our operations or financial standing. For additional information regarding whether any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect our company, including our business strategy, results of operations, or financial condition, please refer to Item 1A, Risk Factors, in this annual report on Form 10-K, including the risk factors entitled Failure to comply with laws and regulations relating to privacy, data protection, and cybersecurity could lead to government enforcement actions, private litigation and adverse publicity . Governance Board of Directors Oversight Our board of directors is responsible for monitoring and assessing strategic risk exposure, and our executive officers are responsible for the day-to-day management of the material risks we face. Our board of directors administers its cybersecurity risk oversight function directly as a whole, as well as through the audit committee. Management s Role Managing Risk Our CISO and our management committee on cybersecurity, which includes our CEO, COO and IT Director, are primarily responsible to assess and manage our material risks from cybersecurity threats. They are assisted by dedicated information security and IT staff, our Data Protection Officer ( DPO ), HR Director, and legal and finance representatives. Our current management committee on cybersecurity includes dedicated full-time specialists in relevant fields ranging from code, application, system, and network security to computer forensics, data privacy and applied cryptography, physical security, social engineering and red teaming. Our CISO who has been leading the team for over a decade, has 20+ years of industry experience, is a Certified Information Systems Security Professional and lead ISO 27001 auditor, and has authored five books on information security auditing strategy, wired and wireless network security, and penetration testing. Our CISO and our management committee on cybersecurity oversee our cybersecurity policies and processes, including those described in Risk Management and Strategy above. The processes by which our CISO and our management committee on cybersecurity are informed about and monitor the prevention, detection, mitigation, and remediation of cybersecurity incidents includes the following: risk assessment and management, policy development and implementation, prevention strategies, detection mechanisms, incident response and mitigation, remediation and recovery, reporting and communication, compliance and legal considerations, efforts at continuous improvement, and training and awareness. 33 Reporting to Board of Directors Our COO reports to our audit committee on a quarterly basis regarding the Company s current cybersecurity risks and activities, including any recent cybersecurity incidents and related responses, customer escalations and requests, cybersecurity systems testing, relevant threat landscape and activities of third parties, security controls implementation status and the implementation of any new cybersecurity tools. Our audit committee regularly reports its activities, including review of cybersecurity matters, to our board of directors.

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