Building trust through SOC 2 compliance: A must for businesses
SOC 2 compliance comes with several benefits. It helps strengthen a company’s security while demonstrating trust to stakeholders. It also helps drive business growth. A company may hesitate to take this step because it requires significant time and resources. However, stakeholders appreciate this commitment to safeguarding their data and will reward companies that are SOC 2 compliant with their business.
Understanding SOC 2 compliance
SOC 2 is a framework that outlines information security standards for businesses. It gives businesses a proven method for analyzing and certifying their security infrastructures. This framework is built around the Trust Service Criteria (TSC). Every business should consider auditing SOC 2 compliance using these five categories today.
What is an SOC 2 audit?
An independent third-party provider completes the SOC 2 audit. When doing so, they turn to the TSC to evaluate the security infrastructure. Upon completion of the assessment, the provider prepares a report showing where the company is in compliance and where improvements must be made.
Why should a company request this audit?
A company is not required to undergo an SOC 2 audit, and it won’t be penalized or fined for not taking this step. Nevertheless, many clients will only work with companies after seeing the SOC 2 report. Why do they want to see this report?
A trusted provider
Customers want to know that the companies they share their data with will protect it. Any data breach that compromises a customer’s information harms both the business and the customer. This audit shows that the company has taken steps to safeguard sensitive information and prevent a data breach, which helps build trust in the company.
Increased revenue
Companies unlock additional revenue opportunities when they show they are SOC 2 compliant. Today, quite a few companies require this document before working with a vendor. Without this report, they must go elsewhere with their business. While some customers don’t need this report, having it gives the company a competitive edge. The audit shows sensitive customer information will be safer with this vendor than with competitors who haven’t undertaken this step.
Stronger security
Successfully passing an SOC 2 audit requires a vendor to implement best practices and safeguards designed to reduce the risk of a data breach. These practices and safeguards strengthen information security infrastructure. The average company loses $9.48 million following a data breach. They must spend extra to mitigate the breach and may be hit with fines and penalties. A loss of customers typically follows a data breach, and the company’s reputation is harmed. An SOC 2 audit can help prevent these problems.
Requesting an SOC 2 audit
Any company may request an SOC 2 audit. Contact a third-party auditor trained to conduct this assessment and create a report detailing the company’s security measures regarding customer and organizational data.
How do I get a SOC 2?
Vendors need to review an SOC 2 report to see which criteria apply to their organizations. Before hiring an AICPA auditor to complete the assessment, they must implement and test any required controls. This ensures the company is in compliance when the auditor completes the report.
This process takes time. A company can expect to spend six months to a year completing the audit. Only four to six weeks are spent with the auditor. Much of this time is invested in preparing the company for the audit. Begin this process today to see the benefits in the shortest time possible.
