All enterprises, especially those that outsource critical business operations to third-party contractors, should be concerned about information security. This is understandable given that improper data handling, particularly by app and network security providers, can expose businesses to threats including malware installation, extortion, and data theft.
It is not surprising that so many organizations are looking to SOC 2 for assistance given the increased awareness of good information security.
SOC 2 is a technique for evaluating service providers to verify that they safely manage your data for the sake of your organization's interests and the security of the customers. SOC 2 certification is a prerequisite for security-conscious enterprises when looking for a SaaS provider.
What is SOC Assessment?
The System and Organization Controls (SOC) assurance reporting frameworks are intended to help service businesses foster a culture of confidence and trust among their clients, customers, and suppliers. The controls are guidelines created to enable service providers meet the need of stakeholders for trust, transparency, and compliance with legal and commercial duties when providing services to customers and clients.
The SOC reports help businesses by giving them a fair level of comfort that their service providers can regulate security, availability, processing integrity, security, and privacy, guaranteeing that the businesses are acting morally and legally.
SOC 2 Compliance and Certification
SOC 2 differs from other cybersecurity frameworks in that it is a voluntary compliance requirement. The AICPA (American Institute of CPAs) built it with service organizations in mind.
Organizations who achieve certification to the Standard show a dedication to information security and demonstrate to prospective associates that they have the necessary safeguards in place.
Organizations develop an internal SOC 2 report as part of their compliance procedures to describe how they handle one or more of the Trust Services Criteria specified by the Standard, including security, availability, processing integrity, confidentiality, and privacy. Organizations and their partners can learn from these reports how their confidential data is handled and used.
Outside auditors grant SOC 2 certification. A company's compliance with one or more of the five trust principles is evaluated based on the systems and procedures in place.
How much does SOC2 cost?
A SOC 2 audit is a significant task that involves senior members of nearly every department, including HR, Administrative, Engineering, Marketing, Customer Service, and others.
The total cost of SOC2 is $147,000 after accounting for lost productivity, construct vs. buy choices for new tools, and security training.
Who is covered under SOC2?
SOC 2 is intended for businesses that offer systems and services to client organizations. This includes companies that offer software as a service and cloud computing.
Five Principles for Trust Services
The foundation of SOC 2 is five Trust Services Criteria. Organizations can concentrate on one or more of these principles depending upon the type of their business, though the first, security, is a need.
- Security: Protection from unwanted access to data or the systems that process it
- Availability: Data usability and accessibility, as well as the accessibility of goods and services
- Processing Integrity: It processes that are whole, true, accurate, timely, and permitted
- Confidentiality: Preventing unauthorized use of sensitive or protected data
- Privacy: Avoiding the misuse of individually identifiable or personal information (PII)
The TSC framework is intended to reflect the interconnection of all controls, therefore there is a large overlap between the categories and the criteria that apply to them.
Benefits of SOC2 Compliance and Certification
The two key benefits of SOC 2 compliance are as follows. It first makes sure that the company upholds a high standard of information security.
The compliance requirements make sure that confidential information is managed safely and are put to the test during an on-site audit. The likelihood of data breaches and user privacy violations is thereby reduced for organizations who adopt the essential controls.
The ability of enterprises to use compliance to create a competitive advantage is a second advantage of SOC 2 compliance. They have a better chance of landing new clients and preserving their current connections if they can demonstrate that they have procedures in place to protect private information.
SOC 2 further specifies that only organizations that have undergone an audit are permitted to share data with compliant organizations. As a result, establishing SOC 2 compliance opens economic prospects that otherwise would not exist.
Although it is not the only type of SOC 2 report a company may obtain, Type 2 Certification is the most reliable. The following are the reasons that SOC 2 Type 2 certification is beneficial any your business:
Arrangement, Storage, and Access
There is no need to manage thousands of documents outlining controls' supporting evidence or concern about others misplacing it or causing mayhem. Data and supporting documentation will be centrally located via SOC 2 compliance software.
Brand Reputation Management
All service businesses rely on customer confidence. Clients may leave you if a business has previously experienced a breach or is at danger of one happening in the future, which might cause a complete loss of business and eventual collapse. As a result, SOC 2 Type 2 auditing offers tremendous value for businesses that have previously been the target of attacks through reputational restoration. Your brand may be saved via SOC 2 Type 2.
Compliance Mapping with Less Repetition
The benefits of SOC 2 Type 2 certification include making it easier for the organization to comply with regulations under many different frameworks or standards.
How to get SOC 2 Certification
You must successfully complete an independent audit and obtain a SOC 2 audit report to obtain SOC 2 certification.
A SOC 2 audit report offers comprehensive data and certainty about procedures in relation to the Trust Services Criteria of the framework.The auditor will evaluate your systems to see if they meet SOC 2 requirements. This will involve a review of your documents, an on-site assessment, and a conversation with pertinent staff members. If the auditor is satisfied that all procedures have been implemented and verified, you will be judged SOC 2 compliant in the factors you chose.