SOC 2
Secure Sensitive Data with SOC 2 Compliance
SOC 2 (System and Organization Controls 2) is a framework for managing and securing data, primarily designed for technology and cloud computing companies that handle sensitive customer data. It is based on five Trust Service Criteria (TSC)
- Security: Protecting data from unauthorized access and threats.
- Availability: Ensuring the system is available for operation and use as agreed.
- Processing Integrity: Ensuring that system processing is complete, valid, accurate, timely, and authorized.
- Confidentiality: Protecting confidential information from unauthorized disclosure.
- Privacy: Ensuring that personal information is collected, used, retained, and disclosed in compliance with privacy laws.
SOC 2 reports are essential for businesses to demonstrate their ability to manage data securely and ensure the privacy and confidentiality of information.
SOC 2 Overview
SOC 2 Type 1 certifies that an organization has the necessary security and privacy controls in place, while SOC 2 Type 2 goes a step further by confirming that those controls are effective over time. SOC 2 reports are crucial for businesses, especially in sectors dealing with sensitive data, to show that they are meeting industry standards for security, availability, processing integrity, confidentiality, and privacy.
SOC 2 audits are performed by third-party auditors (typically certified public accountants, or CPAs) who assess whether the organization’s controls meet the Trust Service Criteria
Focus
The auditor evaluates the design of controls and whether they are in place at a specific point in time
Key Features
- Assesses the suitability of controls at the moment the audit is conducted.
- Provides a snapshot of the organization’s security controls at a specific date.
- Does not evaluate the operational effectiveness of controls over time
Purpose
It’s typically used when an organization is first undergoing SOC 2 compliance or in situations where an organization wants to show they have the necessary controls in place but have not had them in operation for an extended period
Use case
When an organization wants to show that it has implemented necessary controls, but the auditor is not evaluating how well these controls work over time
Focus
The auditor evaluates not only the design of controls but also their operational effectiveness over a specified review period (typically 6 to 12 months)
Key Features
- Assesses how well controls are operating over an extended period of time.
- Provides evidence that the organization is not just implementing controls, but also ensuring they are functioning effectively.
- Includes more detailed testing of the organization’s internal operations
Purpose
Type 2 provides a more comprehensive view of the company’s security posture over time, including how consistently controls are applied and maintained
Use case
When an organization wants to demonstrate that its controls are not only implemented but also operating effectively and consistently over a period
| Feature | SOC 2 Type 1 | SOC 2 Type 2 |
|---|---|---|
|
Focus |
Design of controls at a specific point in time. |
Design and operational effectiveness of controls over time |
|
Review Period |
Snapshot at a single point in time |
Continuous assessment over a defined period (usually 6 to 12 months) |
|
Purpose |
To assess if controls are in place |
To assess both the design and operational effectiveness of controls |
|
Result |
Report on whether controls are designed properly |
Report on whether controls are both designed properly and operating effectively over time |
1. Customer Trust
Demonstrates a commitment to securing sensitive data, which builds trust with customers
2. Competitive Advantage
- Differentiates your company from competitors who may not have SOC 2 compliance
3. Risk Management
Identifies vulnerabilities in your system and improves data security practices
4. Regulatory Compliance
Helps meet industry-specific regulatory and contractual requirements (e.g., HIPAA, GDPR)
5. Business Continuity
1. Preparation
Organizations must prepare their internal controls and ensure they meet the Trust Service Criteria
2. Audit
Engage an external auditor to assess your organization’s systems and controls
3. SOC 2 Type 1 Audit
Review whether controls are designed correctly at a specific point in time.
3. SOC 2 Type 2 Audit
Review the operational effectiveness of the controls over a specified period
3. Report Issuance
Once the audit is complete, the auditor will issue the SOC 2 report (Type 1 or Type 2), detailing findings and recommendations