GrowGeneration Corp. 10-K Cybersecurity GRC - 2024-03-13

Page last updated on April 11, 2024

GrowGeneration Corp. reported their cybersecurity risk management and governance process in a yearly 10-K filed on 2024-03-13 17:21:03 EDT.

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10-K filed on 2024-03-13

GrowGeneration Corp. filed an 10-K at 2024-03-13 17:21:03 EDT
Accession Number: 0001628280-24-010996

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Item 1C. Cybersecurity.

ITEM 1C. CYBERSECURITY RISK MANAGEMENT AND STRATEGY 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 that may result in adverse effects on the confidentiality, integrity, or availability of our information systems or any information residing therein. We conduct periodic 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 assessments include identification of reasonably foreseeable internal and external risks, the likelihood and potential damage that could result from such risks, and the sufficiency of existing policies, procedures, systems, and safeguards in place to manage such risks. 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 Officer (“CIO”) who reports to our Chief Financial Officer, to manage the risk assessment and mitigation process. We engage consultants and other third parties in connection with our risk assessment policies and processes. These service providers assist us to design and implement our cybersecurity policies and procedures, as well as to monitor and test our safeguards. We require third-party service providers to certify their 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 their security measures that may affect the Company. As part of our overall risk management strategies, we also conduct cybersecurity trainings for personnel at all levels and in all departments. 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. GOVERNANCE One of the key functions of our Board of Directors is informed oversight of our risk management process, including risks from cybersecurity threats. 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 primarily through the Audit Committee. Our CIO provides periodic briefings to the Audit Committee regarding our cybersecurity risks and activities, including any recent cybersecurity incidents and related responses, cybersecurity policies and procedures, activities of third parties, and the like. Our CIO is primarily responsible to assess and manage our material risks from cybersecurity threats. Our CIO has over 25 years of professional IT experience and has held numerous positions with responsibility for managing network and data security, including in the legal and banking industries. Our CIO oversees our cybersecurity policies and processes, including those described in “Risk Management and Strategy” above. The processes by which our CIO is informed of and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents include log review from IT and operations teams or reports received from network systems and applications if any unusual activity occurs, such as email system notification of items opened that could be malicious. 15 Table of Contents

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