SOC 2 Compliance
SOC 2 Compliance Keeping your clients’ data safe and secure in a world of ever-increasing cyberspace […]
SOC 2 Compliance
Keeping your clients’ data safe and secure in a world of ever-increasing cyberspace security threats is a big challenge. If you are experiencing this issue and are searching for a solution, then let us tell you SOC 2, aka Systems and Organizations Controls 2, is your answer. SOC 2 compliance is an audit procedure as well as a set of criteria. Service businesses can use it to ensure their users’ personal information security. It is the first compliance framework with which B2B startups seek compliance. It is intended for technology firms and third-party providers who store customer data in the cloud.
What is SOC 2?
SOC 2, or Service Organization Control Type 2, is an internet security compliance structure developed by the American Institute of Certified Public Accountants (AICPA).
It is a voluntary certification that service organizations can use to prove their dedication to information security. SOC 2 reports cover a period and include a summary of the service organization’s system and tests of the design and operational effectiveness of key internal control systems over time.
Although SOC 1 and SOC 2 are both components of the SOC framework, as companies moved to cloud-based storage, they began to prioritize SOC 2 over SOC 1.
Why is SOC 2 Compliance Important?
A SOC 2 certification is more reliable than your word because it is an independent review performed by a third-party CPA firm. The main objective of SOC 2 compliance is to make sure that third-party providers safely store and process client data. It shows that your organization has sufficient procedures to regulate data security.
It can take months for a company to become SOC 2 compliant, which means money lost for your company. Not to mention that the majority of SOC 2 report requests are for SOC 2 Type 2, which means you must demonstrate that you have remained compliant over a prolonged period
Moreover, since compliance is a process that must be demonstrated over time, experts advise making it a priority now. The longer it takes to become compliant, the further behind the competition you may fall.
What are the Types of SOC 2?
SOC 2 reports come in Type 1 and Type 2 varieties. A Type 1 report evaluates the layout of a company’s security protocols at a particular point in time. This report will be generated after the auditor has worked with you to clarify any necessary exceptions. It might take up to two months to apply, check, and fine-tune the policies before scheduling a comprehensive evaluation. The assessment typically entails staff interviews, physical space inspections, and a careful examination of your supporting materials.
A Type 2 report, on the other hand, evaluates the efficiency of those controls over time. SOC 2 Type 2 companies are held to a higher standard because their security practices must be more robust and provide continuous compliance.
Their reports have five sections including:-
- An audit report/opinion letter
- A detailed explanation of the system or service under consideration
- Specifics for each of the Trust Services Categories under evaluation
- Test results from the controls that were tested
Organizations typically seek SOC 2 Type 2 compliance certification to reassure their clients that their information is safe and secure.
What are the Trust Service Principles of SOC 2 Compliance?
SOC 2 identifies five trust service principles as a data protection structure. These trust service principles are as follows: –
The organization’s system must be protected against unauthorized physical and logical access. This metric assesses how well your data and systems are safeguarded against unauthorized access or information disclosure and damage to the systems. It ensures the accessibility, integrity, secrecy, and privacy of the data you store.
The system must be operational and used as agreed upon. This trust principle addresses whether your data and systems are operational and usable to meet your company’s objectives.
The system’s processing must be authorized, timely, accurate, and thorough. This principle determines whether your system’s processing is complete and accurate and whether it is only processing authorized data.
This principle governs whether or not an organization’s data and that a user has designated as “confidential” information is protected.
The last principle examines whether the personal information about your users is gathered, used, maintained, disclosed, and destroyed in accordance with your company’s privacy notice and the Generally Accepted Privacy Principles (GAPP).
What is SOC 2 Compliance Checklist?
Any company that wants to adhere to SOC 2 standards must first create a list. These are the measures that can assist your organization in achieving certification.
A SOC 2 compliance checklist consisted of questions about organizational security, such as how data gets collected, processed, and stored. It also includes questions about controlling information access and mitigating vulnerabilities.
Conduct A Self-Audit To Prepare.
Before initiating a compliance audit, you must conduct a self-audit. This step will assist you in identifying possible problems in your controls so that you can change them as needed.
Determine A Trusted Services Criterion
Following your self-audit, you must choose which trusted services criteria you want to highlight in the audit. You can emphasize this in your audit, and if your budget allows, you can even prioritize all five criteria.
Examine Security Controls
This is where you will examine the security controls and make the necessary changes to ensure that your standards are upgraded and cataloged in accordance with SOC 2 compliance requirements.
Conduct A Final Self-Evaluation
Finally, it’s time to conduct a final evaluation after you’ve updated your security controls. This section will assist you in ensuring that your adjustments are acceptable and that your company is prepared for the compliance audit.
Conduct A SOC 2 Audit.
The last step is to conduct a SOC 2 audit. This, too, will be handled by an outside auditing firm. Once the compliance review is completed, you will receive a SOC report showing the findings.
If everything is in order, you can display the SOC 2 compliance seal on your website to demonstrate that your company values security and customer data protection.
What are the Advantages of SOC 2 Compliance?
As the cloud becomes the preferred location for data storage, SOC 2 becomes a “must-have” compliance for digital businesses and service providers.
However, SOC 2 is more than just adhering to the five trust principles and obtaining certification. It is more about implementing a safe and secure system within your company. Some of the advantages that you might get with SOC 2 Compliance: –
SOC 2 reports demonstrate to prospective consumers that you are serious about integrity, morality, and security throughout your processes. Being able to show that you have the right people, regulations, and procedures to manage a security incident and respond appropriately puts you at the top of the list.
Rapid Sales Cycles
Compliance can also shorten your sales cycle. Pitching new businesses can be simpler for your sales department because they won’t have to complete endless RFIs during the selling process. Instead, they can simply submit the company’s SOC 2 certification.
Long-Term Commercial Success
The work required to prepare for the SOC 2 Type 2 assessment provides perhaps the most significant benefit. It requires you to implement long-term, ongoing internal practices to ensure the safety of customer information. These practices, by definition, will ensure your company’s long-term success.
Advantage In The Marketplace
Having SOC2 certification gives your company a competitive advantage in the industry. With so much at risk, businesses are only interested in partnering with secure companies that have executed proper data breach prevention measures. Vendors must complete a SOC 2 audit to demonstrate that they are safe to work with. Furthermore, having a SOC 2 report available will give you an advantage over competitors who do not have one when pursuing clients who require one.
Being SOC 2 compliant can help you to reach more markets. This is because, in some cases, you cannot enter a market without a SOC 2. If you are selling to financial institutions, for example, they will almost certainly require a SOC 2 type 2 report. Therefore, being SOC 2 compliant can give you benefits and an edge over your competitors.
Hire a consultant for preparation:
You may need to hire a consultant to prepare for SOC 2 compliance. This will not only ensure that you are fully compliant, but it will also demonstrate your organization’s commitment to following best practices for information security.
SOC 2 compliance allows vendors and other businesses to document the security protocols they use to safeguard customer data in the cloud. A SOC 2 compliance audit can assist businesses in identifying the area where modification is required to comply with the TSC. SOC 2 Type 2 certification provides a robust security guarantee, potential savings, consumer awareness, and easier regulatory compliance management.
We collaborate with key stakeholders from business and IT to identify and comprehend the full set of drivers and potential applications of the SOC 2 report.
We provide Vulnerability Assessment Services, Penetration Testing Services, and Security Operations Center (SOC) Services that meet key SOC 2 requirements.
Rogue Logics is your one-stop shop for everything you need to be SOC 2 compliant.
1.What exactly is SOC 2 Certification?
Although SOC 2 is technically an attestation report, it is commonly referred to as a SOC 2 Certification.
2.How long does a SOC 2 audit take?
The time required to complete a full SOC 2 Type 2 audit will vary depending on the size and complexity of your company, as well as the nature of your customer base and dangerous environment. A SOC 2 Type 1 report typically takes two months to complete, whereas a SOC 2 Type 2 report typically takes 12 months.
3.Should I go for SOC 2 Compliance?
Yes, you should. The primary reason is that SOC 2 compliance is required for all committed, technology-based service organizations that store client information in the cloud.