TerrAscend Corp. 10-K Cybersecurity GRC - 2024-03-14

Page last updated on July 16, 2024

TerrAscend Corp. reported their cybersecurity risk management and governance process in a yearly 10-K filed on 2024-03-14 16:05:15 EDT.

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10-K filed on 2024-03-14

TerrAscend Corp. filed a 10-K at 2024-03-14 16:05:15 EDT
Accession Number: 0000950170-24-031450

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Item 1C. Cybersecurity.

Item 1C. Cybersecurity Risk management and strategy The Company has implemented and maintain various information security processes designed to identify, assess, and manage material risks from cybersecurity threats to our critical computer networks, third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in nature, and patient data (“Information Systems and Data”). The Company’s cybersecurity function, led by our Chief Information Officer (“CIO”) and Director of IT Operations, helps identify, assess, and manage the Company’s cybersecurity threats and risks. The Company’s CIO has over twenty-five years of technology leadership experience including infrastructure design and management, software development, system implementation, cybersecurity, and network design administration. The Company’s CIO has proven success in data protection for systems and has supported a complex global public enterprise environment with operations in over 200 countries. The Company’s Director of IT Operations has over ten years of experience developing and leading healthcare solutions and has led the development in web and infrastructure design, serverless architecture, database integrations, SMS, mass-email and mass phone notification solutions. The Company’s Director of IT Operations has dealt directly with numerous cyber security threats, breaches, detection and containment activities and strategies under strict requirements and expectations for HIPAA covered entities. The Company’s cybersecurity team works in partnership with our managed security service provider (“MSSP”) and managed service provider (“MSP”) to help identify, assess, and respond to risks from cybersecurity threats. The Company’s Security Incident Response Team leverages a cybersecurity managed detection and response partner, which monitors certain of our endpoints, cloud infrastructure, and networks for irregular activity. Depending on the environment and system, the Company implements and maintains various technical, physical, and organizational measures, processes, standards, and policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including, for example: an incident response plan, monitoring and response services in certain environments and systems, system access controls for certain systems, an employee cybersecurity training program, asset management and recovery processes, penetration testing, dark web monitoring, monthly environment risk reviews, external threat intelligence reports, regular digital infrastructure scans, internally reported threats, and cybersecurity insurance. The Company’s assessment and management of material risks from cybersecurity threats are integrated into the Company’s overall risk management processes. For example, cybersecurity risk is identified in the Company’s risk register detailing certain known and potential risk items; the Company’s IT operations department works with our MSSP/MSP vendor partners to review certain identified threats and our cybersecurity practices in an effort to prioritize and mitigate cybersecurity threats that are more likely to lead to a material impact on our business; and our CIO regularly presents to senior management, the Board and Audit Committee to evaluate material risks relative to our overall business objectives. The Company uses third-party service providers to assist us from time to time to identify, assess, and manage material risks from cybersecurity threats including, for example, managed cybersecurity service providers, cybersecurity software providers, penetration testing firms, and professional services firms, including legal counsel. The Company uses third-party service providers to perform a variety of functions throughout our business, such as enterprise resource planning, point of sale, eCommerce, wholesale sales, and web hosting. We have a vendor management program to manage cybersecurity risks associated with our use of these providers. Our vendor management program includes completion of a cybersecurity questionnaire for certain vendors designed to help us evaluate the potential cybersecurity risks associated with our use of the vendor. Depending on the nature of the services provided, the sensitivity of the Information Systems and Data at issue, and the identity of the provider, our vendor management process may involve different levels of assessment designed to help identify cybersecurity risks associated with a provider and impose contractual obligations related to cybersecurity on the provider. For a description of the risks from cybersecurity threats that may materially affect the Company and how they may do so, see the risk factors under Item 1A. “Risk Factors” in this Annual Report, including “The Company (and the third parties upon which 53 it relies) faces physical security risks, as well as risks related to its information technology systems, potential cyber-attacks, and security breaches.”. Governance The Board addresses the Company’s cybersecurity risk management as part of its general oversight function. The Company’s Audit Committee is responsible for overseeing the Company’s cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats. The Company’s cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, the CIO and the Director of IT Operations. The CIO is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s overall risk management strategy, and communicating key priorities to relevant personnel. The CIO is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports. Our cybersecurity incident response and vulnerability management processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including the security management department, CIO, Chief Financial Officer (“CFO”), Chief Executive Officer (“CEO”) and others. The security management department, CIO, CFO, CEO, and others work with the Company’s incident response team to help the Company mitigate and remediate cybersecurity incidents of which they are notified. In addition, the Company’s incident response and vulnerability management processes includes reporting to the Board for certain cybersecurity incidents. The Board receives regular reports from the CIO concerning the Company’s significant cybersecurity threats and risks and the processes the Company has implemented to address them. These reports also include materials related to certain cybersecurity trends we have identified, potential cybersecurity threats and risk, and proposed mitigation measures.

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