Which committee of the Board of Directors has been designated to oversee cybersecurity risks at Benihana?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
The Board of Directors, as a whole and at the committee level, has oversight for the most significant risks facing us and for our processes to identify, prioritize, assess, manage, and mitigate those risks. The Audit Committee, which is comprised solely of independent directors, has been designated by our Board to oversee cybersecurity risks. The Committee receives regular updates and reviews with management the implementation and effectiveness of the Company's controls to monitor and mitigate cybersecurity risks.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the Audit Committee of the Board of Directors is responsible for overseeing cybersecurity risks. This committee is composed solely of independent directors.
The Audit Committee receives regular updates and reviews with management the implementation and effectiveness of the company's controls to monitor and mitigate cybersecurity risks. This oversight reflects the importance Benihana places on managing and mitigating potential threats to its IT systems and data.
For a prospective franchisee, this indicates that Benihana has a structured approach to cybersecurity governance, with a dedicated committee at the board level focused on this critical area. This can provide reassurance that the franchisor is actively engaged in protecting sensitive information and mitigating risks associated with cyber threats.