One of the most important compliance requirements is SOC 2 as cloud infrastructure becomes more widespread, and over two-thirds of firms claim that compliance must remain central in creating new business opportunities.
The SOC 2 framework is intended to determine whether an organization has controls that are sufficient to meet the industry standards for data security and privacy, and if the controls are effective. This is not a government requirement, hence noncompliance will have no consequences of penalties and sanctions. The data collected by businesses nowadays are voluminous. The prospective clients and partners need to be assured of the security of the data. A simple way through which the business can be made to appear as practicing the best way of keeping data secure is by the observance of SOC 2 measures.
Introduction
Companies may struggle to locate partners and clients who are prepared to trust them with their data if they are unable to demonstrate their degree of SOC 2 compliance. Organizations should always keep SOC 2 and its requirements in the back of their minds and be ready to talk about their compliance program with possible new business partners, whether or not an audit is imminent.
Being Ready For Both Sorts of SOC 2 Confirmations
There are two types of SOC 2 attestation: Type 1 and Type 2. A Type 2 report focuses on how an organization’s controls regarding security performed over a six-month to one year. The point-in-time view, of course, is exactly what a Type 1 attestation offers for how those same security policies have been performing.
Generally, potential partners or clients will want to at some point see a Type 2 report because whereas useful information may be generated in a Type 1 report, a Type 2 report provides more detail in regard to the performance over time of cybersecurity controls. However, it is not common for an organization to begin work for SOC 2 Type 1 but to prepare for Type 2 as part of planning to meet the first SOC 2 audit.
Ultimately, organizations would want to be assured that they are doing business with a company that has a history of good data stewardship. The five trust services criteria are security, availability, confidentiality, processing integrity, and privacy. An organization needs to collect data regarding the effectiveness of controls over time. These standards ensure that the clients and partners who are interested will have an ample view of how effective the company’s security program is.
SOC 2 Type 2 audit planning should be done at least a year ahead of time, if not sooner. Rushing rarely gives positive results, although the time frame for achieving SOC 2 compliance is different for every organization and depends on several factors such as the preparedness level of the firm, complexity of business processes, and how well their current configuration aligns with the five criteria.
Considering SOC 2 a Pass or Fail
Another prevalent misconception regarding SOC 2 is that there is such a thing as “SOC 2 certification.” The result of a SOC 2 audit is simply a report that outlines the auditor’s opinion about how the organization’s security controls stand up to each of the criteria in the SOC 2 framework, and SOC 2 is not a pass/fail model. There is also room for the auditor to offer qualifications for mitigating circumstances. That report will reflect which requirements were met, which areas need improvement, and which were not met. The report will provide much more information than a simple certificate of compliance with the data security capabilities of an organization to potential partners and clients.
This therefore means the audit process continues. Organizations cannot just sigh with relief and go on to other things after receiving a report because it must be completed annually. For most businesses, maintaining an annual SOC 2 reporting cycle is best practice. This is undoubtedly a significant investment, but an annual cycle gives stakeholders confidence in the security of your environment and the efficacy of your controls. It is the time when developing data that an auditor may need each year should not be cumbersome but rather become much easier.
SOC 2 Is Regarding Demonstrating Outcomes
SOC 2 does not require organizations to apply any specific controls. It’s a framework and set of standards that can assist businesses in evaluating and reporting how effective their security, availability, confidentiality, processing integrity, and privacy measures are working. Businesses can then exercise their discretion to implement pertinent controls to the business, industry, or legal requirements.
This means that with respect to satisfying their SOC 2 requirements, enterprises now have options: they enjoy the freedom of selecting the solution that may help best. And, considering a variety of factors dealing with the industry as well as the size or location of the business, control may well be more suitable for some organizations than others.
The organization is doing fine if it can assure the auditor that it is up to the set standards. That frees firms from focusing on the outcome rather than a step-by-step process to satisfy an audit check-off list.
Frequently Asked Questions (FAQs)
What does SOC stand for?
It stands for security operations center.
What is SOC 2 compliance?
It is a cyber-security compliance framework created by the American Institute of Certified Public Accountants.
What are the 5 principles of SOC 2?
· Privacy
· Confidentiality
· Process Integrity
· Availability
· Security
How to become SOC 2 compliant?
· Consult a credible third-party
· Choose auditing criteria
· Create a plan for SOC 2 compliance
· Conduct a formal audit
· Attain certifications and re-certifications
Diginatives offers top-notch SOC 2 compliance services. If you want these services for yourself, feel free to ask.
