If your business stores data from clients, then SOC 2 is a highly trendy topic in your security landscape and in your sales narrative. More and more prospecting customers are now expecting their vendors to have achieved some level of SOC 2 compliance.
Introduction
A specific type of audit known as SOC 2 was designed specifically for companies that maintain customer information. To receive a SOC 2 attestation, that important report that helps attract new business, you must be able to prove that your company’s internal controls can ensure the security, availability, processing integrity, confidentiality, and privacy of your customers’ information. These characteristics are referred to as the Trust Services Criteria in the context of SOC 2.
Who, therefore falls under that broad classification of businesses maintaining client information? The list of companies under this general classification is comprised of, but not limited to;
· Businesses which provide the service of software as a package
· Software that deals on analytics or business intelligence
· Financing service firms
· Banking
· Investment
· Insurance
· Safety
Any firm that operates its business model in cloud-based storage client information.
SOC 2 compliance should be a priority to any organization that falls within that definition. Furthermore, you should know very well what SOC 2 means for your company.
The Importance of SOC 2 Compliance For Cloud Vendors and SaaS Companies
If you are among those SaaS companies or cloud vendors, SOC 2 compliance is something very essential to your business’ sustainable future. Going through the process, which can sometimes feel too lengthy, in acquiring a SOC 2 report ensures you do everything to protect your customers’ information.
But this work is not only a good thing for your customers, it is a good thing for you as well-you establish trust with your current and future customers, close more deals, build more revenue, and maintain a positive relationship and reputation with all involved. Not to mention, many customers won’t close a deal without your SOC 2 compliance-so it keeps customers coming back to you rather than running away.
The truth is, everyone wins with SOC 2: your business, your clients, and you. Your clients will be at peace knowing that their data is safe. Your business will enjoy a growing customer base and a bright future. And as a leader, you’ll have the confidence to keep all parts of your business running smoothly knowing that your security processes are doing what they’re supposed to do.
Is SOC2 A Compulsory Legal Requirement?
In contrast, HIPAA (the Health Insurance Portability and Accountability Act) is a different type of regulation, although one that is indeed statutorily mandated. Companies dealing with the health information of clients are required to be covered under HIPAA. Whereas SOC 2 is put forth by the American Institute of CPAs (AICPA), which established it and its variations (SOC 2 Type 1 vs. Type 2), independent auditors or certified public accountants provide the reports distributed to prove SOC 2 compliance. This will help your clients see from the reports objective evidence that indeed your security meets the Trust Services Criteria.
Though SOC 2 is not managed by a government agency and does not have heavy fines for infractions, attaining compliance remains an essential process for SaaS businesses and cloud providers. In case fines for infractions do not pose a threat, the loss of business would be a sure threat to your business if you cannot show that you are working toward SOC 2 compliance. SOC 2 is no less important for SaaS companies or cloud vendors as any compliance requirement. Plus, although SOC 2 does not have any legal binding nature, it has an additional benefit that most of the requirements are similar to the HIPAA standards. That means, by following SOC 2, you will automatically help your business with some of the HIPAA compliant aspects.
Frequently Asked Questions (FAQs)
What is SOC2 compliance?
The main objective of SOC2 is to guarantee that 3rd party service providers save and process customer data in a safe method.
What are the 5 SOC2 criteria?
· Privacy
· Processing integrity
· Confidentiality
· Security
· Availability
Is SOC2 compliance important?
Service companies are not directed by any sort of law to attain SOC2 compliance.
Diginatives is a top-notch SOC 2 compliance service provider. If you want similar services please contact us.
