{"id":6113,"date":"2020-06-18T06:07:39","date_gmt":"2020-06-18T06:07:39","guid":{"rendered":"https:\/\/www.clickdo.co.uk\/business-news\/?p=6113"},"modified":"2020-06-18T06:13:57","modified_gmt":"2020-06-18T06:13:57","slug":"the-importance-of-soc-2-compliance","status":"publish","type":"post","link":"https:\/\/www.clickdo.co.uk\/business-news\/the-importance-of-soc-2-compliance\/","title":{"rendered":"Understanding The Importance Of SOC 2 Compliance For Your Business"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a18775ecb7a9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a18775ecb7a9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/the-importance-of-soc-2-compliance\/#What_Is_SOC_2\" >What Is SOC 2?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/the-importance-of-soc-2-compliance\/#The_Importance_Of_SOC_2_Compliance\" >The Importance Of SOC 2 Compliance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/the-importance-of-soc-2-compliance\/#Customer_Demand\" >Customer Demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/the-importance-of-soc-2-compliance\/#Competitive_Advantage\" >Competitive Advantage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/the-importance-of-soc-2-compliance\/#Cost-Effectiveness\" >Cost-Effectiveness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/the-importance-of-soc-2-compliance\/#Helps_with_Your_Regulatory_Compliance\" >Helps with Your Regulatory Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/the-importance-of-soc-2-compliance\/#Valuable_Insight\" >Valuable Insight<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/the-importance-of-soc-2-compliance\/#Gives_You_Peace_of_Mind\" >Gives You Peace of Mind<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/the-importance-of-soc-2-compliance\/#Over_To_You\" >Over To You<\/a><\/li><\/ul><\/nav><\/div>\n<p>SOC 2 refers to an auditing procedure that makes sure service providers securely manage their clients\u2019 data to protect their interests and the privacy of their respective customers. For a <strong>security-conscious business<\/strong>, SOC 2 compliance should be a minimal requirement when you consider a SaaS provider.<\/p>\n<p>Information security is both a reason and an ongoing concern for all organizations, especially those that outsource their critical <a href=\"https:\/\/www.clickdo.co.uk\/business-news\/how-to-grow-online-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">business operations<\/a> to third-party vendors such as<strong> SaaS or cloud-computing providers<\/strong>. Mishandled data, especially by network or application security providers, can leave your business vulnerable to attacks, such as malware installation, data theft, or extortion.<\/p>\n<h2><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6116\" src=\"https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Understanding-The-Importance-Of-SOC-2-Complianc.png\" alt=\"Understanding The Importance Of SOC 2 Complianc\" width=\"640\" height=\"424\" srcset=\"https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Understanding-The-Importance-Of-SOC-2-Complianc.png 501w, https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Understanding-The-Importance-Of-SOC-2-Complianc-300x199.png 300w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/strong><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_SOC_2\"><\/span><strong>What Is SOC 2?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SOC 2 is an abbreviation of <strong>System and Organization Controls for service-based organizations 2<\/strong>. It was developed and is presently maintained by the <strong>American Institute of CPA<\/strong>s (AICPA) as a criterion for the management of customer data. It is contingent on five trust criteria, namely security, privacy, availability, confidentiality, and processing integrity.<\/p>\n<p><a href=\"https:\/\/reciprocitylabs.com\/the-ultimate-guide-to-soc-2\/\" target=\"_blank\" rel=\"noopener noreferrer\">SOC 2 compliance<\/a> reports have rigid requirements and are unique to organizations since each designs its controls based on its <a href=\"https:\/\/www.clickdo.co.uk\/business-news\/retail-trade-business-needs-a-domain-name\/\" target=\"_blank\" rel=\"noopener noreferrer\">specific business practices<\/a> and in compliance with the trust principles.<\/p>\n<p>SOC 2 internal reports provide you (and your regulators, suppliers, business partners, etc.) with essential information concerning how your service providers manage data. There are two types of reports:<\/p>\n<ul>\n<li><em>Type one describes a vendor\u2019s systems plus whether their design can meet relevant trust principles.<\/em><\/li>\n<li><em>Type two details the specific systems\u2019 operational effectiveness.<\/em><\/li>\n<\/ul>\n<p>Outside auditors issue <strong>SOC 2 certification<\/strong> after assessing the extent to which vendors comply with some or all the five trust principles with relation to their systems and processes.<\/p>\n<h4>The Five Trust Principles are:<\/h4>\n<ul>\n<li><strong><em>Security<\/em><\/strong>: Addresses data and systems protection against unauthorized logical and physical access.<\/li>\n<li><strong><em>Availability<\/em><\/strong>: Addresses how data and systems are accessible as per the agreement in a service organization\u2019s objectives and service level agreements.<\/li>\n<li><strong><em>Processing Integrity<\/em><\/strong>: Addresses the effectiveness, validity, accuracy, and timeliness of system processing.<\/li>\n<li><strong><em>Confidentiality<\/em><\/strong>: Addresses the protection of confidential information.<\/li>\n<li><strong><em>Privacy<\/em><\/strong>: Addresses the collection, use, retention, disclosure, and destruction of personal information as per the commitments set in the privacy notice.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6114 size-large\" src=\"https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Importance-Of-SOC-2-Compliance-For-Business-1024x504.png\" alt=\"Importance Of SOC 2 Compliance For Business\" width=\"640\" height=\"315\" srcset=\"https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Importance-Of-SOC-2-Compliance-For-Business-1024x504.png 1024w, https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Importance-Of-SOC-2-Compliance-For-Business-300x148.png 300w, https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Importance-Of-SOC-2-Compliance-For-Business-768x378.png 768w, https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Importance-Of-SOC-2-Compliance-For-Business.png 1144w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Importance_Of_SOC_2_Compliance\"><\/span><strong>The Importance Of SOC 2 Compliance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SOC 2 compliance is not a legal or mandatory requirement for vendors, but its role is nonetheless critical to securing your data. Therefore, service organizations should consider investing in a SOC 2 technical audit since many companies now expect SOC 2 compliance from service providers. Also, having a certification that attests to their compliance confers additional benefits.<\/p>\n<p><a href=\"https:\/\/www.aicpa.org\/interestareas\/frc\/assuranceadvisoryservices\/aicpasoc2report.html\" target=\"_blank\" rel=\"noopener noreferrer\">AICPA designed SOC 2<\/a> reports to provide assurances about a service organization\u2019s effectiveness of the controls that they have in place to ensure the security, processing integrity, and availability of the systems that they use to process client information. It also ascertains the privacy and confidentiality of that information.<\/p>\n<p>Below are ways that a SOC 2 report benefits your service organization:<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Customer_Demand\"><\/span>Customer Demand<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>For many clients, protecting their customer data from theft and unauthorized access is a priority, so naturally, they are looking for a service provider that can prove that they have systems in place to secure data. SOC 2 compliance goes a long way in showing your data security ability, and without it, you could lose a lot of business.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Competitive_Advantage\"><\/span>Competitive Advantage<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>With high customer demand for a SOC 2 attestation, having one gives <a href=\"https:\/\/www.clickdo.co.uk\/business-news\/companies-for-work-from-home-jobs\/\" target=\"_blank\" rel=\"noopener noreferrer\">your company a competitive<\/a> advantage over your competition who fails to show compliance.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Cost-Effectiveness\"><\/span>Cost-Effectiveness<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>If you think audit costs are high, data breaches cost a lot more. Thus, a SOC 2 compliance audit is one of the proactive measures you can take to avoid costly security breaches and find out your level of exposure.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Helps_with_Your_Regulatory_Compliance\"><\/span>Helps with Your Regulatory Compliance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>SOC 2 attestation requirements conform to other frameworks such as HIPAA or ISO 27001. Therefore, attaining certification can move forward your organization\u2019s overall compliance efforts, mainly if you use SaaS or GRC software that provides you with a big-picture view.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Valuable_Insight\"><\/span>Valuable Insight<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>A SOC 2 compliance report gives you an in-depth look at your organization\u2019s security and risk posture. It also provides valuable insight into your processes, including vendor management, regulatory oversight, internal controls governance, etc.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Gives_You_Peace_of_Mind\"><\/span>Gives You Peace of Mind<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>Passing your SOC 2 audit assures you that you have secure systems and networks in place to protect your data as well as that of your clients.<\/p>\n<h2><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6118\" src=\"https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Understanding-The-Importance-Of-SOC-2-Complianc-1.png\" alt=\"Understanding The Importance Of SOC 2 Complianc\" width=\"640\" height=\"416\" srcset=\"https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Understanding-The-Importance-Of-SOC-2-Complianc-1.png 492w, https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2020\/06\/Understanding-The-Importance-Of-SOC-2-Complianc-1-300x195.png 300w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/strong><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Over_To_You\"><\/span><strong>Over To You<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With the increased proliferation of new security threats on the Internet, data security standards are continually changing. Hence, the need for SOC 2 reports which are the most critical compliance attestations that data centers can provide for their customers. They are far more useful than any checklist of standards, and they provide documented evidence that a service provider has put in place the appropriate security controls.<\/p>\n<p>SOC 2 compliance is also proof of the successful track record of a <a href=\"https:\/\/www.clickdo.co.uk\/business-news\/corporate-housing-provider\/\" target=\"_blank\" rel=\"noopener noreferrer\">service provider<\/a>. Though these reports are both challenging to obtain and expensive, they are essential for service and colocation providers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SOC 2 refers to an auditing procedure that makes sure service providers securely manage their clients\u2019 data to protect their interests and the privacy of their respective customers. For a security-conscious business, SOC 2 compliance should be a minimal requirement when you consider a SaaS provider. Information security is both a reason and an ongoing [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":6115,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[123],"tags":[133,131,132],"class_list":["post-6113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-services","tag-business-services","tag-soc-2-audit","tag-soc-2-compliance"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/posts\/6113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/comments?post=6113"}],"version-history":[{"count":4,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/posts\/6113\/revisions"}],"predecessor-version":[{"id":6122,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/posts\/6113\/revisions\/6122"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/media\/6115"}],"wp:attachment":[{"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/media?parent=6113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/categories?post=6113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/tags?post=6113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}