Risk Management and Strategy

As a leading and diversified global animal health and mineral nutrition company, we increasingly rely on information technology systems and infrastructure to support critical operations and manage our business effectively, including through the use of emerging technologies such as artificial intelligence. Our systems facilitate the handling and storage of electronic information such as customer, employee, and company data. For more information on these risks, see “Item 1A. Risk Factors — Risk Factors Relating to Our Business — We may be exposed to information technology system failures, network disruptions and breaches in data security.” These issues haven't materially affected our operations or financial performance. Still, we recognize that cyber threats are becoming more sophisticated and frequent, and we expect ongoing attempts to compromise our operations.

We use a range of tools and strategies to identify and reduce cybersecurity risks, including the use of threat intelligence to spot potential attackers, emerging threats, and new attack methods. These efforts extend to our external service providers that have access to our systems and data.

To maintain a secured information technology environment, we work with independent third parties to conduct regular penetration tests and cybersecurity risk assessments of our overall security setup.

Over the past year, we have made significant progress in improving our cybersecurity efforts. In partnership and with training from the Center for Cybersecurity, our security operations implemented managed detection and response services. Supported by constant monitoring and learning from both internal experience and external intelligence, these initiatives have us better prepared to detect and address cybersecurity threats.

We also maintain an ongoing cybersecurity awareness and training program that includes regular training sessions and simulated phishing exercises to encourage and promote safe user practices and reduce human-related risks.

To proactively address new risks associated with emerging technologies such as artificial intelligence, we’ve established management processes that include user education, clear guidelines, and monitoring tools to facilitate the secure adoption of new technologies in a consistent manner.

Lastly, we have a structured program for managing cybersecurity risks related to third-party providers that involves a thorough risk assessment process before engaging with new vendors and ongoing monitoring to ensure they meet our security standards.

We use a range of tools and strategies to identify and reduce cybersecurity risks, including the use of threat intelligence to spot potential attackers, emerging threats, and new attack methods. These efforts extend to our external service providers that have access to our systems and data.

To maintain a secured information technology environment, we work with independent third parties to conduct regular penetration tests and cybersecurity risk assessments of our overall security setup.

Over the past year, we have made significant progress in improving our cybersecurity efforts. In partnership and with training from the Center for Cybersecurity, our security operations implemented managed detection and response services. Supported by constant monitoring and learning from both internal experience and external intelligence, these initiatives have us better prepared to detect and address cybersecurity threats.

We also maintain an ongoing cybersecurity awareness and training program that includes regular training sessions and simulated phishing exercises to encourage and promote safe user practices and reduce human-related risks.

To proactively address new risks associated with emerging technologies such as artificial intelligence, we’ve established management processes that include user education, clear guidelines, and monitoring tools to facilitate the secure adoption of new technologies in a consistent manner.

Lastly, we have a structured program for managing cybersecurity risks related to third-party providers that involves a thorough risk assessment process before engaging with new vendors and ongoing monitoring to ensure they meet our security standards.

Governance

Our Chief Technology and Digital Innovation Officer (“CTDIO”) leads the Company’s Technology Group and has over 28 years of experience in digital systems and technology across the animal health, biotechnology, and pharmaceutical industries.

The CTDIO provides periodic reports to the Board of Directors, executive management, and Legal Counsel. These reports include updates on cybersecurity risks and threats, assessments of the Company’s information security program, and developments in the evolving threat landscape.

In addition, the Company’s information technology systems are regularly evaluated by internal personnel and external consultants, with the results reported to executive management and the Board of Directors.  

The CTDIO provides periodic reports to the Board of Directors, executive management, and Legal Counsel. These reports include updates on cybersecurity risks and threats, assessments of the Company’s information security program, and developments in the evolving threat landscape.

Our Chief Technology and Digital Innovation Officer (“CTDIO”) leads the Company’s Technology Group and has over 28 years of experience in digital systems and technology across the animal health, biotechnology, and pharmaceutical industries.