TRANSACT TECHNOLOGIES INC 10-K Cybersecurity GRC - 2024-03-13

Page last updated on April 11, 2024

TRANSACT TECHNOLOGIES INC reported their cybersecurity risk management and governance process in a yearly 10-K filed on 2024-03-13 17:05:25 EDT.

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10-K filed on 2024-03-13

TRANSACT TECHNOLOGIES INC filed an 10-K at 2024-03-13 17:05:25 EDT
Accession Number: 0001140361-24-013040

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Item 1C. Cybersecurity.

Item 1C . Cybersecurity Risk Management and Strategy The Company s Board of Directors recognizes the critical importance of maintaining the trust and confidence of our customers, clients, business partners and employees. The Board of Directors 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. 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 of Directors oversight of cybersecurity risk management is supported by the Audit Committee of the Board of Directors (the Audit Committee ), which regularly interacts with the Company s ERM function, the Company s Vice President of Information Technology, other members of management and relevant management committees and councils, including management s Sarbanes-Oxley & Cybersecurity Steering Committee. 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. Incidence 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. 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 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 periodically reported to the Audit Committee and the Board of Directors, and the Company adjusts its cybersecurity policies, standards, processes and practices as appropriate based on the information provided by these assessments, audits and reviews. 19 Index Governance The Board of Directors, in coordination with the Audit Committee, oversees the Company s ERM process, including the management of risks arising from cybersecurity threats. The Board of Directors and the Audit Committee each receive 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 of Directors 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 of Directors and Audit Committee discuss the Company s approach to cybersecurity risk management with the members of management s Sarbanes-Oxley & Cybersecurity Steering Committee, which includes the Company s President and Chief Financial Officer ( CFO ) and Vice President of Information Technology. The Sarbanes-Oxley & Cybersecurity Steering Committee, in coordination with the Company s outside legal counsel, works collaboratively across the Company and with various consultants 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. The Vice President of Information Technology has served in various roles in information technology and information security for over 25 years and holds undergraduate and graduate degrees in computer science. As described in more detail above under the heading Information about our Executive Officers, the Company s Chief Executive Officer and the President and CFO each hold undergraduate and graduate degrees in their respective fields, and each has over 30 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 materially affect, the Company, including its business strategy, results of operations or financial condition.

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