Living in the modern world has undeniably led to a lot of changes, not only in the way we do business, but in the way we live our lives in general. Plenty of processes are changing, including, of course, the process of running companies and leading them towards the desired success. Obviously, one of the things that has changed is the fact that everyone is doing business online these days, and there is no doubt in my mind that you are, or you want to be, doing the same.
Now, when running any kind of a business, you will be dealing with a lot of important and sensitive data. And, I am not talking solely about the data of your company and your employees, but also about the data of your clients, as well as investors and any other stakeholders. Especially when you are present online and when handling the data electronically, you will undeniably need to understand how to keep it safe. Both because you don’t want to be the victim of any data breaches whatsoever and because those stakeholders are requiring assurance that their information is kept safe and secure.
Here is a bit more about how to ensure customer data privacy: https://www.wordstream.com/blog/ws/2022/11/22/customer-data-privacy
Clearly, you will need to keep your clients and any stakeholders completely sure that you are protecting their data, so as to continue cooperating with them and have the possibility of growing your brand. As you may have imagined it already, people won’t really want to work with companies that are known to be frequent victims of data breaches and that, thus, show they are not exactly interested in safeguarding their information and protecting their privacy. On the contrary, companies that show they understand the importance of data protection are the companies that people will trust.
One thing that organizations do in order to protect everyone’s data and avoid breaches, leaks and hacking, is this. They use certain compliance and security frameworks to put in place specific security policies, measures and controls, so as to secure their networks and thus prove to their clients that they are reliable and trustworthy. And, naturally, one of the most commonly adopted frameworks that is used for these purposes is known as the Systems and Organizations Controls 2 (SOC 2).
You may have heard of this framework already, but there is a great chance that you still don’t completely understand what it means and that you, therefore, want to do some more learning before you figure out why SOC2 audits and compliance are important. Furthermore, you’ve most likely heard of ISO 27001, so you’re probably wondering whether those two frameworks are actually the same, or if you should consider them both in more details. And, naturally, you want to know how to stay in compliance, which is definitely another important question we will answer for you. So, let us start providing you with the answers, one at a time.
What Is SOC 2?
First of all, we need to ensure that you understand the actual framework before going any further. Let me, thus, cut to the chase and make things completely clear for you. SOC 2 is a compliance framework that has been developed by the American Institute of Certified Public Accountants, with the purpose of assessing security, confidentiality, processing integrity, availability and privacy of an organization’s systems and processes.
To say it differently, this is a framework that specifies how exactly organizations should be handling customer data. The five criteria that I have mentioned above are known as the Trust Services Criteria (TSCs). Anyway, the bottom line is that this framework serves to ensure the privacy and safety of customer’s data, making sure that organizations are complying with the necessary regulations, as well as that they have the right measures in place to mitigate risks.
Now, you may think that the SOC 2 is a sort of a list of controls, processes and tools basically prescribed to an organization. But, that is not exactly the case. In fact, this framework cites the criteria for maintaining a good level or information security, and organizations are free to choose those processes and practices that are relevant to their specific operations and objectives. So, with the help of the framework, you create your own security systems and measures.
Is It the Same as ISO 27001?
If you have heard about the ISO 27001 framework as well, then you may be wondering if these two are the same. The short answer is no. When it comes to information security, both of these standards have a great reputation, as they can both help organizations achieve their data protection goals. Yet, the SOC2 and the ISO 27001 have certain differences, and organizations need to, therefore, familiarize themselves with both frameworks, aiming at making an informed decision regarding which one to use for their specific purposes.
Why Is a SOC 2 Audit Important?
An SOC 2 audit is carried out with the aim of checking the organization’s risk management, taking a look at the measures that have already been implemented, so as to uncover any gaps. There are two types of audits, and both of them are conducted by external AICPA auditors. After the audit is done, the company receives a report, in which the information security is actually assessed. And, if the audit is successfully passed, the organization receives an SOC 2 certification, stating that it is in compliance with the necessary regulations.
Naturally, these audits are important because, by showing compliance, companies can gain quite a significant competitive advantage. This especially goes for those industries with high compliance standards. And, gaining competitive advantage, among other things, means building trust with your clients and stakeholders, which is undeniably of crucial importance when you’re trying to grow your business and establish yourself as a reputable brand on the market.
How to Achieve and Stay in Compliance?
So, we have made it clear that SOC 2 compliance is critical for organizations that want to demonstrate their commitment to data privacy, security, as well as operational integrity. The thing that you are interested in right now is understanding how to actually achieve the mentioned compliance and maintain it, aiming at showing all the stakeholders that you are taking this seriously, and that you will handle their data responsibly. Click this to learn even more on SOC 2 and why we need it.
The first thing to do with that aim is define the scope and the objectives of an SOC 2 audit, so as to know which systems and processes to asses, and so as to establish the right goals for achieving the compliance. After that, you have to develop and implement the controls that are aligned with the TSC, keeping in mind its five important pillars mentioned above. That is, availability, security, confidentiality, processing integrity and privacy requirements.
Of course, you will need to maintain comprehensive documentation of the actual policies, procedures and the evidence of implementing the controls. This way, you will be prepared for the SOC 2 audit process, and you will make it easier for you to receive the compliance certification. And, last but not least, you’ll need to monitor and regularly assess and improve the effectiveness of the controls, making sure to address any identified weaknesses. In short, you’ll need to keep improving your security practices so as to stay in compliance.
