Small businesses need to pay close attention to meeting the most important IT security compliance requirements if they want to function efficiently and serve their customers effectively. SOC 2 (System and Organization Controls 2) is a key voluntary compliance framework that will help you keep the sensitive data on your company’s network secure and enable you to serve your customers better.
SOC 2 Overview
SOC 2 was created by the American Institute of Certified Public Accountants (AICPA) to provide guidance for organizations on how to best store, process, and transmit customer data. SOC 2 assesses an organization’s data controls in five main areas known as the Trust Services Criteria (TSC): security, availability, processing integrity, confidentiality, and privacy.
In contrast to other compliance frameworks, SOC 2 does not list specific controls to follow, but rather it provides guidelines to attain specific objectives. This flexibility makes it adaptable for diverse industries and companies, which will design and implement different controls to ensure IT security.
In addition, the result of a SOC 2 audit is an attestation compared to a certification, as in most security standards. Third-party SOC 2 auditors engage in two types of SOC 2 audits, resulting in one of four qualification level attestations with a detailed report on the company’s IT security state.
A Type 1 audit assesses how well a company’s security controls are designed to attain the relevant TSC and is a snapshot at a specific point in time. A Type 2 audit is a longer and deeper assessment that determines how well an organization’s security controls perform over a set period of time.
A company can receive assistance from a non-CPA expert on SOC 2 compliance to prepare for the auditing process, but an external auditor from a licensed CPA firm must perform the SOC 2 audit. The attestation and accompanying SOC report are valid for 12 months, so most IT security experts recommend conducting an audit annually.
Industries that use SOC 2
As described above, complying with SOC 2 is useful for any service companies that manage the sensitive data of clients or user entities. SOC 2 is important for companies in industries where data security and system dependability are crucial. Applicable company services include cloud computing, SaaS, managed IT services, and data storage.
SOC 2 is most relevant to the following industries: software and technology, financial services, telecommunications, healthcare, HR and payroll, and companies involved in E-commerce.
Main Reasons to be SOC 2 compliant
Even though SOC 2 compliance is not mandatory, there are some important reasons why your small business should work to achieve it.
Client and company reassurance
Even though SOC 2 is not an IT security compliance requirement, many potential clients want to be reassured that your organization is doing everything possible to protect customer data from bad actors. Fear of data breaches is one of the leading concerns of businesses of all sizes and sectors. In an ever more competitive business environment, customers are looking for vendors and partners that can prove they have the highest level of cybersecurity.
Passing a challenging SOC 2 audit will also help your company and employees feel reassured that your own sensitive information is well-protected.
Complementary with other important IT security standards
Many of SOC 2’s requirements and recommendations are similar to the requirements of critical IT security standards such as HIPAA, ISO 27001, and CMMC. When your company is working toward achieving SOC 2 compliance, you will also be building the framework to be compliant with required security standards.
Long-term cost savings
Although there is an upfront investment needed to prepare and pass a SOC 2 audit, the process will provide long-term value to your organization. Your company will learn about any cybersecurity issues and implement mitigation measures that will lower the risk of expensive data breaches. The SOC 2 compliance process will also help your company work more efficiently by lowering or eliminating costly downtime, which will result in substantial savings in the long run.
Get Help from an Expert in SOC 2
The most valuable advice we can offer on SOC 2 compliance is to seek assistance from an expert in IT security compliance and cybersecurity, like Network Depot. These experienced professionals will guide and accompany you every step of the way during the complicated SOC 2 auditing process and help prepare your organization to meet all cybersecurity challenges.
With Network Depot as your trusted compliance partner, you will get valuable support meeting the demanding requirements for SOC 2. After achieving this important IT security compliance milestone, your company’s IT will be secure, and you will be able to work effectively with a wide range of clients and partners.