TWIN DISC INC 10-K

Item 1B. Unresolved Staff Comments None. Item 1C. Cybersecurity The Audit Committee of the Board of Directors is responsible for oversight of risks from cybersecurity threats. The Audit Committee oversees management’s processes for assessing, identifying, and managing material cybersecurity risks and receives periodic reports regarding the Company’s cybersecurity posture, significant risks, incident response readiness, and other cybersecurity matters as appropriate. The Company has developed, and continues to enhance, processes designed to assess, identify, and manage material risks from cybersecurity threats affecting the information technology systems and information that it owns, uses, transmits, receives, and maintains. These processes are integrated into the Company's broader enterprise risk management framework and include the identification, assessment, mitigation, monitoring, and remediation of cybersecurity risks. The Company's cybersecurity program includes employee awareness training, incident response planning, continuous monitoring of cybersecurity threats and vulnerabilities, and evaluation of cybersecurity risks associated with third-party service providers. Management is responsible for assessing and managing the Company's material cybersecurity risks. This responsibility is carried out by members of the Company's executive leadership team and personnel responsible for information technology and cybersecurity functions who possess experience in information technology, information security, risk management, and incident response. Management oversees cybersecurity risk assessment and mitigation activities, cybersecurity controls, incident response readiness, and the escalation of significant cybersecurity matters to senior management and the Audit Committee, as appropriate. The Company utilizes internal personnel and, when appropriate, third -party service providers, advisors, and specialists to support cybersecurity risk management activities, including security monitoring, risk assessments, and evaluation of cybersecurity controls. The Company has not experienced any cybersecurity incidents that have materially affected the Company, including its business strategy, results of operations, or financial condition, and expenses incurred from cybersecurity incidents have been immaterial. However, as discussed under "Risk Factors" in Part I, Item 1A of this Annual Report, cybersecurity threats pose multiple and potentially material risks to the Company, including risks that could materially affect its business strategy, results of operations, or financial condition. As cybersecurity threats become more frequent, sophisticated, and coordinated, it is reasonably likely that the Company will continue to invest resources to enhance its cybersecurity risk management processes and protective measures.