What is a SOC 2 report and what are the benefits?
Organizations increasingly outsource processes or data to service providers. Processes that have no relation to financial processes are relevant for SOC 2 reporting. A SOC 2 report is an internal control report that focuses on controls at a service provider relevant to Security, Availability, Processing Integrity, and privacy. A SOC 2 report ensures that a service organization keeps data private and secure while processing, and that data is accessible at any time.
What is a SOC 2 report?
In a SOC 2 report, these TSCs have been elaborated into control measures and a description of the complete risk management system. An external auditor checks whether this description corresponds with reality; the systems are indeed set up as described and, after his or her approval, the SOC 2 report provides an assurance statement.
Why is everyone asking about a SOC 2 these days?
Organizations must demonstrate to their customers that they secure data properly. This means that the risk management system is set up, but also that the suppliers they use manage risks in the same way. Customers ask for proof that this is indeed the case. This can be demonstrated by SOC 2 compliance.
Benefits of SOC 2 reporting
SOC 2 reports used by organizations as a marketing tool. Thanks to SOC 2, new and existing customers immediately know that they are dealing with a reliable party. Organizations that do not have such reporting may miss important new opportunities.
- Implementation will have a positive effect on the quality of risk management
- Customer confidence improves that risks are actually managed effectively
- IT questions from partners and customers can be answered more efficiently
- Opportunities arise to acquire new customers and retain customers
- The SOC 2 is an internationally recognized standard. This means recognisability, acceptance and usability with customers and regulators all over the world
- SOC 2 leads to professionalization of the organization, accountability for activities performed and improved control of processes