Setting Up a Bug Bounty Program: Prerequisites and Best Practices for Australian Enterprises

A bug bounty program invites external security researchers to find and report vulnerabilities in exchange for rewards. Prerequisites for a successful program include: a solid security baseline established through formal penetration testing (launching a bounty on an untested system produces a flood of basic findings), a clear scope definition (which systems and vulnerability types are in scope), a responsive triage process (researchers expect timely acknowledgement and assessment), fair reward structures (calibrated to vulnerability severity and impact), legal safe harbour (protecting researchers who act in good faith), and internal capacity to remediate reported findings. Bug bounties complement but do not replace structured penetration testing.