EASTERN CO 10-K Cybersecurity GRC - 2024-03-12

Page last updated on April 11, 2024

EASTERN CO reported their cybersecurity risk management and governance process in a yearly 10-K filed on 2024-03-12 16:33:46 EDT.

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10-K filed on 2024-03-12

EASTERN CO filed an 10-K at 2024-03-12 16:33:46 EDT
Accession Number: 0001654954-24-003010

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Item 1C. Cybersecurity.

Item 1C. Cybersecurity 16.
ITEM 1C CYBERSECURITY The Company s 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 a key 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. 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 the Company s ERM function, the Company s Director of Information Technology & Cybersecurity, and other members of management and relevant management committees and councils, including management s Cybersecurity Council. 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 are designed to provide for the prompt and appropriate internal reporting of certain cybersecurity incidents, either in the form of a single unauthorized occurrence or a series of unauthorized occurrences, 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 comprehensive incident response and recovery plans intended to fully and timely 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. 16 Table of Contents Education and Awareness: The Company provides regular, mandatory training for personnel regarding cybersecurity threats to equip the Company s personnel with effective tools to proactively address cybersecurity threats and prevent incursions, and to communicate the Company s evolving information security policies, standards, processes, and practices. Our awareness program includes assessment of our personnel s preparedness through regular phishing e-mail alerts, highlighted banners that warn about external senders, and tests administered to help the Company s personnel interrogate, navigate around, and avoid clicking suspicious and unfamiliar links from unknown senders. 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 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 appropriate 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, or that management otherwise deems to be significant, 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 management s Cybersecurity Council, which includes the Company s Chief Executive Officer ( CEO ), Chief Financial Officer ( CFO ), Director of Risk, and Director of Information Technology & Cybersecurity. The Cybersecurity Council, in coordination with the Company s outside legal counsel, 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 Director of Information Technology & Cybersecurity and the Cybersecurity Council monitor the prevention, detection, mitigation and remediation of cybersecurity threats and incidents in real time and report such threats and incidents to the Audit Committee when appropriate. The Director of Information Technology & Cybersecurity has served in various roles in information technology and information security for over 25 years, including the design and management of operational and cybersecurity activities of two large public companies. The Director of Information Technology & Cybersecurity holds undergraduate and graduate degrees in computer science and is certified in NIST, CMMC, CIS, and GDPR. The Company s CEO and CFO each hold undergraduate and graduate degrees in their respective fields, and each has over 20 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 previous cybersecurity incidents, have not materially affected and are not reasonably likely to affect the Company, including its business strategy, results of operations or financial condition.

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