There are several benefits of SOC 2 compliance. A completed SOC 2 report strengthens your security posture, demonstrates trust to stakeholders, and drives business growth. While it requires significant time and resources, it shows your stakeholders that you’re committed to protecting their data and that you’re a trustworthy vendor.
In this article, we’ll cover:
- What SOC 2 compliance is
- Why SOC 2 compliance is important
- The process for getting a SOC 2
What is SOC 2 compliance?
SOC 2 is a well-known framework that provides standards for information security and offers a verified method for evaluating and certifying your security infrastructure. The security policies and practices for SOC 2 are organized around five categories known as the Trust Service Criteria (TSC).
To get your SOC 2 attestation, you’ll need to undergo an audit by a third-party auditor who will assess your security infrastructure against these five criteria. After completing the audit, the auditor will prepare a SOC 2 report, which serves as the official document that demonstrates your SOC 2 compliance.
Your checklist to SOC 2 compliance
Need to get your SOC 2 report but not sure where to start? This guide walks you through the steps to achieve SOC 2 compliance.
Why is SOC 2 important?
While SOC 2 is not required by law—there are no penalties or fees for not having one—customers often need to see your SOC 2 report before agreeing to do business with you.
Below are three reasons why a SOC 2 report is important, both for you and your customers:
- Establishing a trusted reputation
If you manage, process, or handle customer data, your customers need to know they can trust you. A data breach compromising their data could hurt their business too. SOC 2 compliance shows your stakeholders that you’ve taken the necessary precautions to prevent a breach and protect their data. This helps build trust and enhances your organization’s reputation.
- Unlocking revenue opportunities
SOC 2 compliance not only demonstrates trustworthiness but can unlock deals that require a SOC 2 report. Many large organizations, especially in North America, need to see a vendor’s SOC 2 before agreeing to work with them. Without it, you may lose opportunities or nearly-closed deals. Even if prospects don’t require SOC 2, it still offers a competitive advantage, signaling that their data will be safer with you than with competitors who lack this certification.
- Building a strong security infrastructure
Preparing for a SOC 2 audit forces you to implement best practices and safeguards, reducing the risk of data breaches and their costly consequences. According to IBM Security, the average cost of a data breach is $4.45 million. These costs include compensation for employees, fines, penalties, and lost revenue as customers switch vendors. A breach can also damage your brand’s reputation over the long term.
Who needs SOC 2 compliance?
SOC 2 is not a mandatory or legally required compliance standard for any organization. However, it is often expected from prospects, customers, and partners if your organization handles, manages, or processes customer data. SOC 2 compliance is particularly common among SaaS companies, managed IT service providers, and business or data analytics providers.
How do I get a SOC 2?
To obtain SOC 2 compliance, you’ll need to go through the audit process. This involves hiring a third-party auditor to investigate your information security and create a report detailing your security posture and the controls you’ve implemented to protect data. However, preparation is key before the audit begins.
Here’s an overview of the SOC 2 process:
• Define the scope of your SOC 2 report by identifying the relevant criteria for your business.
• Implement and test the required security controls.
• Hire an auditor from an accredited AICPA firm.
• Collect evidence and documentation.
• Undergo the SOC 2 audit and receive your report.
How long does it take to get a SOC 2?
The SOC 2 process typically takes six months to a year from preparation to receiving the final report. This timeline includes identifying missing controls, setting and testing them, gathering evidence, and finding an auditor. Once the audit begins, it usually takes four to six weeks for the assessment.
However, you can significantly reduce this time with compliance automation.
Streamline your SOC 2 audit with benchmarked services
With benchmarked services, you can expedite your SOC 2 audit. Here’s what an automated SOC 2 process looks like:
• We assess your risk holistically, you get clear overlook.
• Identify areas of non-compliance through notifications within the services.
• Receive a checklist of actions to help you make necessary changes.
• We collect evidence and centralize all documentation in one place,
• We streamline reviews by providing auditors with necessary information on your behalf
• Complete your SOC 2 audit in half the time.
By using benchmarked services, you can save significant time and money during your SOC 2 audit process. Learn how to get your SOC 2 faster by getting on free call with us.
