RING ENERGY, INC. 10-K Cybersecurity GRC - 2024-03-07

Page last updated on April 11, 2024

RING ENERGY, INC. reported their cybersecurity risk management and governance process in a yearly 10-K filed on 2024-03-07 17:07:11 EST.

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10-K filed on 2024-03-07

RING ENERGY, INC. filed an 10-K at 2024-03-07 17:07:11 EST
Accession Number: 0001628280-24-009691

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Item 1C. Cybersecurity.

Item 1C: Cybersecurity Cybersecurity Risk Management We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. We design and assess our cybersecurity risk management program based on the National Institute of Standards and Technology Cybersecurity Framework ( NIST ). This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use the NIST as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business. Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas. Our cybersecurity risk management program includes, but is not limited to, the following key elements: risk assessments designed to help identify material cybersecurity risks to our critical systems and information; a Manager of Information Technologies ( IT Manager ) responsible for managing our cybersecurity risk assessment processes, our security controls, and our response to cybersecurity incidents; the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security processes; systems for protecting information technology systems and monitoring for suspicious events, such as threat protection, firewall and anti-virus software; and cybersecurity awareness training of our employees, including incident response personnel, and senior management. Governance Our board of directors (the Board ) considers oversight of our risks and risk management activities, including those related to cybersecurity threats, to be a responsibility of the entire Board. The Board also delegates certain risk oversight responsibilities to certain of its committees, and oversight of our cybersecurity risk is delegated by the Board to its Audit Committee. The Audit Committee receives regular reports, typically on a quarterly basis, from management and our internal auditors regarding information technology, cybersecurity risk, and efforts to prevent and mitigate such risks. The Chairperson of the Audit Committee subsequently reports on the Company s cybersecurity risk, monitoring, and mitigation activities to the full Board, which equips the Board and its committees to fulfill their risk oversight role. 34 Table of Contents The Board and Audit Committee are supported in their oversight capacity by our Management Cybersecurity Committee (the MC Committee ) and our internal auditors. The MC Committee consists of our CEO, CFO, EVP of Engineering and Corporate Planning, and our IT Manager. Our internal auditors perform audit engagements to assess our strategies, policies, procedures, and controls to reduce the risk of a cybersecurity incident. Our IT Manager is responsible for assessing and managing risks from cybersecurity threats, our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. Our IT Manager is responsible for reporting material incidents to our MC Committee. Our IT Manager has a Bachelor of Science in Computer Science from Texas A&M University and a Master of Business Administration from Rice University. He has over fifteen years of information technology experience in the energy industry. Our MC Committee stays informed about and monitors efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, including, as appropriate, briefings from internal security personnel, threat intelligence and other information obtained from governmental, public or private sources, such as external consultants engaged by us, and alerts and reports produced by security tools deployed in the information technology environment. Engagement of Third Parties The MC Committee, internal auditors, our IT Manager and various other groups each occasionally engage third-party service providers to assist in their management of cybersecurity threats, including but not limited to cybersecurity vendors, assessors, consultants, auditors, and other third parties. Our IT Manager oversees third party vendors to identify cyber risks associated with our use of third-party service providers who may have access to sensitive Company data and systems. Impact of Risks from Cybersecurity Threats As of the date of this Annual Report, we are not aware of any cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations or financial condition. However, we acknowledge that cybersecurity threats are continually evolving, and the possibility of future discovery of cybersecurity incidents remains. Please see Part I, Item 1A. Risk Factors Risks Related to Technology and Cybersecurity for additional information about our cybersecurity risks. There can be no assurance that our cybersecurity risk management program, including our controls, procedures and processes, will be fully complied with or that our program will be fully effective in protecting the confidentiality, integrity and availability of our information systems. While we devote resources to our security measures to protect our systems and information, these measures cannot provide absolute security that they will not be subject to cybersecurity attacks and any damages to us from such attacks.

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