Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 252

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 252
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 our clients use to
access our products and services could result in client attrition, regulatory fines, penalties or intervention, reputational damage,
reimbursement or other compensation costs, and/or additional compliance costs, any of which could materially adversely affect our results
of operations or financial condition.

Our
board and its committees oversee our cybersecurity, disaster recovery and business continuity risk management framework. Our governance
oversight of cybersecurity, disaster recovery and business continuity risk management framework may not be effective in mitigating risks
and/or losses.

Our board of directors
oversees our cybersecurity, disaster recovery and business continuity risk management framework. The board of directors reviews and approves
our cybersecurity, disaster recovery and business continuity risk management framework on an annual basis. The board has delegated the
primary review of our cybersecurity, disaster recovery and business continuity risk management framework and related policies and procedures
to the board-level Information Security Committee, which reports and makes recommendations to the board of directors in these regards.
Senior management is responsible for establishing, implementing, maintaining and testing our policies and procedures related to cybersecurity,
disaster recovery and business continuity and provides reports on these matters to the Information Security Committee. The Information
Security Committee reports its activities to the full board of directors.

While we have implemented
a cybersecurity, disaster recovery and business continuity risk management framework to mitigate our loss and risk exposure, there is
no assurance that such framework will be effective under all circumstances. Failures in our governance oversight of cybersecurity, disaster
recovery and business continuity risk management framework could cause us to be more vulnerable to cyber attacks and disruptions to our
systems supporting customer activities, such as our online banking and mobile application which could result in disruptions to our business,
result in the disclosure or misuse of confidential proprietary information, damage our reputation, increase our costs and cause losses.
Risks associated with cybersecurity and disruptions to our operations are further addressed in these Risk Factors under the Caption Operational
Risks.

39

Our
risk management framework may not be effective in mitigating risks and/or losses.

We have implemented
a risk management framework to mitigate our risk and loss exposure. This framework is comprised of various processes, systems and strategies,
and is designed to identify, measure, monitor, report and manage the types of risk to which we are subject, including, among others,
credit risk, interest rate risk, liquidity risk, legal and regulatory risk, compliance risk, strategic risk, reputational risk and operational
risk related to our employees, systems and vendors, among others. Any system of control