What is SOC 2?
SOC 2 is a common auditing procedure that ensures service providers securely manage data to protect the interests of your organization and the privacy of its clients. It's an attestation report that evaluates an organization's systems and processes for managing customer data based on the Trust Services Criteria (TSC) established by the American Institute of Certified Public Accountants (AICPA). SOC 2 reports have become an industry standard for demonstrating an organization's commitment to data protection and are particularly vital for Technology and Cloud Computing entities.
Why Does SOC 2 Exist?
SOC 2 was designed to address the growth in technological and cloud computing advances that led to more businesses storing information on the cloud. Thus, the AICPA recognized the need to develop a reporting framework through which service organizations could demonstrate the design and effectiveness of their security controls. SOC 2 exists to assure clients that the service providers they engage with uphold a robust standard of security, availability, processing integrity, confidentiality, and privacy.
Who Needs SOC 2 Compliance?
Any service provider storing customer data in the cloud needs SOC 2 compliance. It's especially critical for Software as a Service (SaaS) providers, where clients access online services instead of installing software on their systems. Other key sectors include financial, health, and technology firms with access to confidential client data. The ability to present a SOC 2 report not only provides assurance to clients about data protection but also works to differentiate the service provider in a competitive market.
How is SOC 2 Used in Cybersecurity and DevOps?
In cybersecurity, SOC 2 provides an industry-accepted framework for implementing and auditing security controls. It aids organizations in assessing the efficacy of their security policies and procedures, aligning their security practices with business objectives, and proving to stakeholders that they take security seriously.
In DevOps, a practice that combines software development (Dev) and IT operations (Ops), adhering to SOC 2 compliance ensures that the software being developed is secure and reliable. It ensures that any vulnerabilities in the development process are identified, mitigated, and the system's integrity maintained. It's critical for DevOps teams to understand and integrate SOC 2 principles into their processes to protect the company and its clients from potential breaches.
How Common is SOC 2?
SOC 2 compliance has become practically a necessity for any business that deals with customer data, but especially for those using cloud-based delivery models or providing IT managed services. In an era where data breaches and cybersecurity threats are increasingly common, SOC 2 reports are becoming an almost de facto industry standard. Without SOC 2 compliance, businesses may struggle to establish trust with potential clients or partners and could face reputational or financial damage if a breach occurs.
