All businesses seek to be reliable, safe, and trustworthy for their customers, especially those dealing with and storing customer data. Neglecting such attributes will ensure you do not maintain a customer base for very long. Therefore, you must implement a system that you can trust to ensure that your customers continue to trust your business.
SOC 2 is a framework that all technology service or SaaS organizations that keep customer data in the cloud must follow. The framework ensures that organizational controls and policies successfully safeguard the privacy and security of customer and client data.
This article will see everything there is to know about SOC 2 compliance.
SOC 2's predecessor, SOC 1, was created by the American Institute of Certified Public Accountants (AICPA) to assess the efficacy of service organization controls on financial reporting. In response to increased concerns about data privacy and security, they added SOC 2.
All service providers that process and store client data must comply with SOC 2. Auditors use the AICPA's Statement on Standards for Certification Engagements No. 18, which prioritizes data security, to create the SOC 2 attestation of compliance.
SOC 2 mandates that businesses develop and adhere to stringent information security policies and procedures. With the SOC 2 report attesting to your company's compliance, you can rest easy knowing that the data you process is secure — something extremely essential in today's environment.
The American Institute of CPAs (AICPA) developed SOC 2, a voluntary compliance standard for service organizations that describes how firms maintain client data.
A SOC 2 report gets tailored to each organization's specific needs. Each organization can develop controls that follow trust principles, depending on its business practices. These internal reports provide crucial information about how an organization maintains its data to its regulators, business partners, and suppliers. SOC 2 reports get divided into two categories:
Essentially, every technological service provider or SaaS company that processes or maintains client data must comply with SOC 2. To preserve the integrity of their data systems and safeguards, such firms' third-party vendors, other partners, or support organizations should likewise be SOC 2 compliant.
Outside auditors offer SOC 2 certification. Based on the systems and processes in place, they assess the extent to which a vendor conforms with one or more of the five trust principles.
Following that, the Trust Principles are as follows:
A technical audit by an outside party determines SOC 2 compliance. It requires enterprises to develop and follow specific information security policies and procedures aligned with their goals. SOC 2 compliance can last anywhere from six to twelve months. It ensures that a company's information security safeguards are up to date with the changing needs of cloud data protection.
SOC 2 compliance guarantees your customers and clients that you have the infrastructure, tools, and policies in place to protect their data from illegal access both inside and outside the company.
Essentially, SOC 2 compliance means:
While no SOC 2 compliance gets required for SaaS and cloud computing providers, its importance in data security cannot be understated. The heavy lifting may be done by a powerful and excellent management tool, saving you time, money, and a few more hours of restful sleep. Consider Werbot in this regard.