What is SOC 2 and what are the benefits?
The number of organizations that manage customer data is increasing. This also increases the demand for SOC 2 reports that answer the question of whether information security is well organized at these organizations. IT companies today are expected to be SOC 2 compliant, especially when they store data in the cloud.
SOC 2 compliance means that an organization has strict procedures in place for, among other things, information security and privacy security, depending on the scope of the SOC 2 report. The scope of a SOC 2 report is defined in the Trust Service Criteria (TSCs) of AICPA, which range from information security (1), availability of systems (2), the integrity of processes (3) to confidentiality (4) and privacy (5). An organization itself chooses which of these principles it complies with, whereby information security must, in any case, be included.
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 to 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
Confidence in organizations is increased through a SOC report. Nowadays, SOC 2 reports are used by organizations as a marketing tool. Thanks to SOC2, new and existing customers know immediately 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
Advantage with tender
It often happens that during the sales process a customer asks his supplier to fill in an IT questionnaire that has been prepared by, for example, a team of engineers. If this is the case then a SOC 2 report can probably answer these questions in an effective way. It will speed up the process considerably. Quick answers will also give the customer the feeling and confidence that processes are indeed in order.
SOC 2 and the cloud
A SOC 2 certification is becoming increasingly important as the demand for cloud-based solutions increases. A SOC-2 report is increasingly seen as the industry standard that sets an IT solution provider apart from its competition. If you want your organization to distinguish itself better from your customers, please contact one of our consultants.
Risklane offers services in the field of information security, risk management, and governance. In addition to advisory services and risk sourcing, Risklane offers software solutions that enable organizations to implement complex standards independently. This makes Risklane a progressive and market leader in the Netherlands. Risklane realizes solutions for risk management and the implementation of, among others, ISAE 3402 (SOC1), ISAE 3000 (SOC2), GDPR/AVG, ISO 27001, ISO 9001, and COSO.