Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 260

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1A
Chunk 260
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 operational errors, could disrupt business, damage our reputation, and cause
losses.

Our operations rely on the secure processing,
storage, and transmission of confidential information, including in our computer systems and networks and those of third-party service
providers. We rely heavily on our operating systems in connection with issuing policies, paying claims, and providing the information
we need to conduct our business. We also rely on the operating systems of AFBIS in connection with various processes with respect to our
crop lines of business. Our business depends on effective information security and systems, and we place significant reliance on the integrity
and timeliness of the data our information systems process to support our business. A breakdown or disruption of any of these systems
could materially adversely affect our ability to conduct our business and our results of operations.

We are exposed to many other types of operational
risk, including the risk of fraud by employees and outsiders, clerical and recordkeeping errors, and computer or telecommunications systems
malfunctions. Our business depends on our ability to process a large number of increasingly complex transactions. If any of our operational,
accounting, or other data processing systems fail or have other significant shortcomings, we could be materially adversely affected. Similarly,
we depend on our employees. We could be materially adversely affected if one or more of our employees cause a significant operational
breakdown or failure, either as a result of human error or intentional sabotage or fraudulent manipulation of our operations or systems.

Cyberattacks, security breaches, or similar
events affecting the technologies and systems we rely on to operate our business and to maintain and protect sensitive Company and customer
data could disrupt our operations, harm our reputation, and result in material losses.

We have implemented administrative and technical
controls, have taken actions to reduce the risk of cyber incidents and to protect our information technology and assets, and will continue
to modify such procedures as circumstances warrant and negotiate appropriate terms in our agreements with third-party providers to protect
our assets. However, such measures may be insufficient to prevent unauthorized access, computer viruses, malware or other malicious code
or cyberattack, business compromise attacks, catastrophic events, system failures and disruptions, employee errors or malfeasance, third-party
(including outsourced service providers) errors or malfeasance, loss of assets, and other events that could have security consequences.
Such an event may result in data loss or loss of assets which could result in significant losses, reputational damage, or other adverse
effects on our operations.

In addition, our technologies, systems