What is a SOC 2 certification?

The System and Organization Controls 2 (referred to as SOC2) is a voluntary compliance standard for service organizations. SOC 2 is maintained by the American Institute of Certified Public Accountants (AICPA) and audits are completed by accredited businesses. The purpose of an audit is to test an organization’s internal controls for information security and privacy, ensuring that they securely process and store client data. The resulting report demonstrates that a business’s security and confidentiality controls, meet or exceed the requirements established by the AICPA.

There are two types of SOC 2 reports:

SOC 2 Type I reports evaluate a company’s controls at a single point in time. It answers the question: are the security controls designed properly?

SOC 2 Type II reports assess how those controls function over a period of time, generally 3-12 months. It answers the question: do the security controls a company has in place function as intended?

SOC 2 Type 2 Principles

There are five principles in the SOC 2 framework:

1. Security
2. Availability
3. Processing Integrity
4. Confidentiality
5. Privacy

Who Benefits from SOC 2 Type 2 Audits?

Cloud-based vendors hunting for enterprise accounts can certainly benefit from SOC 2 compliance, which is often required to compete for the business of data-sensitive companies. But an assessment helps other companies, too.

For companies with data breaches in their histories, an assessment demonstrates a commitment to airtight security practices. It provides a layer of protection that can assure partners that security problems are a thing of the past.

Companies with uncertified competitors can also benefit. They’ll prove they’re serious about security and that they can anticipate clients’ needs for transparent processes.

Benefits of SOC2 Certification

1. 1. Brand Reputation-

SOC 2 Certification is an evidence that the organization has taken all necessary measures to prevent a data breach. This in turn helps in building good credibility and enhances the brand reputation in the market.

2. Competitive Advantage–

Holding a SOC2 Certification/ Attestation definitely gives your business an edge over others in the industry. With so much at stake, businesses are only looking to partner with vendors who are safe and have implemented appropriate measures for preventing data breaches. Vendors are required to complete a SOC 2 Audit to prove they are safe to work with. Besides when pursuing clients that require a SOC 2 report, having one available will give you an advantage over competitors who do not have one.

3. 3. Marketing Differentiator–

Although several companies claim to be secure, they cannot prove that without passing a SOC2 Audit and achieving SOC2 Certificate. Holding a SOC 2 report can be a differentiator for your organization as against those companies in the marketplace who do not hold SOC2 certification and have not made a significant investment of time and capital in SOC2 Compliance. You can market your adherence to rigorous standards with SOC2 Audit and Certification while others cannot.

4. 4. Better Services: –

You can improve your security measures and overall efficiency in operations by undergoing a SOC 2 Audit. Your organization will be well-positioned to streamline processes and controls based on the understanding of the cyber security risks that your customers face. This will overall improve your services.

5. Assured Security:- 

SOC2 Audit & Attestation/Certification gives your company an edge over others as it assures your customers of implemented security measures for preventing breaches, and securing their data. Moreover, the SOC2 report assures the client that the organization has met established security criteria that ensure that the system is protected against unauthorized access (both physical and logical).

6. Preference of SOC2 Certified Vendors-

Most businesses prefer working with SOC2 Certified vendors. For these reasons having SOC 2 certification is crucial for organizations looking to grow their business in the industry.

7. ISO27001 is Achievable–

SOC 2 requirements are very similar to ISO27001 certification. So, having achieved SOC2 certification will make your process of achieving ISO27001 easier. However, it is important to note that clearing a SOC 2 audit does not automatically get you ISO 27001 certification.

8. 8. Operating Effectiveness–

Auditing requirements for SOC2 Type II require compulsory 6 months of evidence and testing of the operating effectiveness of controls in place. So, SOC2 Audit ensure maintaining an effective information security control environment.

9. Commitment to IT security-

SOC2 Audit & Certification demonstrates your organization’s strong commitment towards overall IT security.  A broader group of stakeholders gain assurance that their data is protected and that the internal controls, policies, and procedures are evaluated against industry best practice.

10. Regulatory Compliance- 

As mentioned earlier, SOC 2 requirements go in sync with other frameworks including HIPAA and ISO 27001 certification. So, achieving compliance with other regulatory standards is easy. It can speed up your organization’s overall compliance efforts.

11. Valuable Insight–

A SOC 2 report provides valuable insights into your organization’s risk and security posture, vendor management, internal controls,  governance, regulatory oversight, and much more.

Who should implement soc2 type 2

• Software as a service (SaaS) organizations.
• Companies that deal with business intelligence or analytics.
• Financial service institutions, including: Banking. Investment. Insurance. Security.
• Any other organization that stores customer data in the cloud.