SOC 2
Ensuring Data Security

SOC 2 is a security framework developed by the AICPA to address this need. By following SOC 2's five criteria (security, availability, processing integrity, confidentiality, and privacy), organizations can demonstrate their commitment to information security and build trust with customers.

SOC 2 is a security framework that specifies how organizations should protect customer data from unauthorized access, security incidents, and other vulnerabilities. Businesses must prioritize information and data security due to the evolving threat landscape. In addition to the damage to one’s reputation and the loss of client trust, a single data breach can cost millions.

To demonstrate their dedication to information security, organizations can get a range of certifications and standards. The SOC report, along with the SOC 2 for customer data, is one of the most sought after.

SOC 2 stands for Systems and Organization Controls 2. The American Institute of Certified Public Accountants (AICPA) in 2010, developed SOC 2 around five Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. SOC 2 was designed to provide auditors with guidance for evaluating the operating effectiveness of an organization’s security protocols.

The SOC 2 security standard addresses how businesses should manage client data. Fundamentally, SOC 2 was created by the AICPA to build trust between service providers and their clients.

What is SOC 2 Compliance?

SOC 2 encompasses the security framework as well as the audit that determines if a business complies with SOC 2 standards.

SOC 2 outlines the following five Trust Services Criteria (TSC) as the basis for managing and storing client data:

  • Security – Protecting information from unauthorized access
  • Availability – Ensuring employees and clients can rely on your systems to perform their work
  • Processing integrity – Verifying that company systems operate as intended
  • Confidentiality – Protecting confidential information by limiting its access, storage and use
  • Privacy – Safeguarding sensitive personal information against unauthorised user

A SOC2 audit will evaluate your company’s security posture in relation to one or more of these Trust Services Criteria. Businesses put internal controls in place to adhere to the particular standards set forth by each TSC. The Security TSC is a mandatory component of a SOC 2 audit; the other four are not. Security is frequently referred to as the common criteria because it has several criteria with all of the Trust Services Criteria.

What is a SOC 2 Audit?

While some security frameworks like ISO 27001 and PCIDSS have rigid requirements, that isn’t the case with SOC 2.

Every organization has its own controls and attestation reports. Every company therefore develops special controls to satisfy its Trust Services Criteria.

Our auditors are brought in to verify whether the company’s controls comply with SOC 2 regulations. In a report that is prepared after the audit, the auditor assesses how well the company’s systems and practices comply with SOC 2. Every organization that completes a SOC 2 audit receives a report, regardless of whether they pass the audit.

Here are the terms auditors use to describe the audit results:

  • Unqualified: The company passed its audit.
  • Qualified: The company passed, but some areas require attention.
  • Adverse: The company failed its audit.
  • Disclaimer of Opinion: The auditor doesn’t have enough information to make a fair conclusion.

SOC 2 Type I vs Type II: What’s the Difference?

There are two types of SOC2 reports:

  • SOC 2 Type I reports evaluate a company’s controls at a single point in time. It answers the question: are the security controls designed properly?
  • SOC 2 Type II reports assess how those controls function over a period of time, generally 3-12 months. It answers the question: do the security controls a company has in place function as intended

When deciding between the two, take your objectives, budget, and time limits into account.

While a Type II report gives your customers more confidence, a Type I report may be completed more quickly. We do advise using the SOC2 Type II Report, though.

 

 

Benefits of SOC 2 Type II compliance

Companies are shifting their operations from on-premise software to a cloud-based infrastructure in order to reduce overhead costs and increase processing efficiency. But switching to cloud services involves letting go of strict control over data and system resource security.

Data will be hosted, handled, and maintained on your behalf by someone outside of your company. Your sensitive data will be accessible to the sub-processor, making you susceptible to data breaches.

A SOC 2 report assures your customers that your security program is properly designed and operates effectively to safeguard data against threat actors.

It shows that you’re responsible with:

  • Process monitoring
  • Encryption control
  • Intrusion detection
  • User access authentication
  • Disaster recovery

Investing in a SOC 2 Type II audit can deliver incredible value to your organization. The legal, security, and procurement departments of customers often request copies of their SOC 2 reports from their providers. The sales process may be interrupted in the absence of one, particularly when moving upmarket.

Other benefits of SOC 2 compliance
  • Protection against data breaches: In addition to safeguarding your brand’s reputation, a SOC 2 report helps prevent costly data breaches and set best practices security controls and procedures.
  • Competitive differentiation: A SOC 2 report provides definite evidence to existing and prospective clients that you are dedicated to protecting their private information. Your business will have a major advantage over rivals who lack a report if it has one in hand.
  • Efficient internal processes: A SOC 2 audit might identify areas where process simplification is possible for your company. It also guarantees that everyone in your organization is aware of their specific roles and obligations with relation to data security.
Who needs a SOC 2 Report?

A service company will likely require to be SOC 2 compliant if it handles, transmits, or maintains any form of client data.

This is the reason why:

  • SOC 2 criteria assist your business in implementing strict internal security procedures. This establishes the framework for security procedures and policies that can support the safe growth of your business. Additionally, it increases client trust.
  • Service companies typically pursue a SOC 2 report in response to requests from their clients. Your clients must have confidence in your ability to secure their sensitive data.
  • The top standard for offering that guarantee is a SOC 2 report. Additionally, it might hold the secret to increasing sales and moving upscale. Customers may interpret it as an indication of your company’s sophistication. It also shows a dedication to safety. Not to mention offers a strong point of differentiation from rivals.
Why is SOC 2 important?

Having the actual report in hand is only one advantage of SOC 2 compliance.

The following are just a few of the numerous benefits of adhering to the SOC 2 framework:

  • More customer trust
  • New clients
  • Access to more markets
  • A better understanding of your processes
  • Improved security
Protecting Your Brand's Reputation

SOC 2 aids in safeguarding your brand’s reputation. It doesn’t matter how well-known your brand is or how loyal your customer base is. If you let security lapses become a habit and experience a data breach or exposure, customers will go.

One mistake could cause serious harm to your brand’s reputation. Not to mention the millions spent on recovery and cleanup, implementing new controls, and restoring customer trust.

SOC2 protocols and controls can protect your company from these catastrophic consequences.

Distinguishing You from the Competition

Any company can assert that it values its clients’ security and safety above all else. But if there is no evidence to back up these claims, customers become less interested. That’s exactly what a full SOC2 audit will provide. SOC2 compliance attained and maintained is proof of validated security.

It also shows them how committed you are to safeguarding their information. Having that SOC 2 accreditation is a practical way to give prospective customers the confidence they need to collaborate with you.

Attracting More Customers

Obtaining SOC 2 compliance will boost your sales and attract security-conscious clients. It is common for prospective SOC 2 certified clients to refuse to work with your organization unless you can provide a SOC 2 report for a certain Trust Services Criteria.

Stronger trust results in more enduring clients. In addition to increasing customer lifetime value and creating opportunities for growth, it reduces marketing costs.

Improving Your Services

A SOC 2 audit might tell you more than just where security needs to be reinforced. It also shows how to streamline internal policies and processes in your business.

This allows you to increase productivity within your firm and improve security at the same time. You’ll have more time and resources to invest in raising the standard and satisfaction of your products and services.

It also forces companies to establish security protocols that become ingrained in the corporate ethos, putting in place documentation and policies, enabling multi-factor or single sign-on authentication, etc. Each of these becomes deeply embedded in the way your company runs on a regular basis.

Saving You Time and Money in the Long Run

If you don’t already have a SOC 2 report, you’ll probably need to fill out lengthy security questionnaires for every enterprise customer.

These surveys can be very detailed, demanding, and difficult to finish if you do not currently have policies and documentation in place. Having a SOC 2 report gives you a comprehensive set of best practices to protect sensitive information and makes selling to larger enterprises easier.

Moreover, SOC 2 compliant policies, procedures, and controls will make obtaining additional security certifications easier. For example, there are numerous requirements overlapping with ISO 27001 guidelines. Accreditation with ISO 27001 is accelerated and less expensive with a SOC 2 report.

Consumer expectations for SOC 2 compliance are rising, particularly for those who buy corporate brands. The faster you comply, the faster you can gain the trust of your clients and set yourself apart from competitor.

Raising standards since 2006.

Kyte Global, with clients in over 65 countries has established itself as a unique company providing a one-stop-shop to all your information security and compliance requirements.

At Kyte Global we attempt to add value in everything we do. Our services have evolved as a result of the growing needs of our clients. Regulations keep getting stricter, compliance requirements keep getting more onerous and clients find themselves spending more time addressing these issues rather than focusing on their business. At the same time, resources with the right knowledge and experience are hard to come by. Kyte Global tries to tackle these issues by providing a one stop shop to all the client’s needs. Kyte Global understands that Compliance is an effective way of ensuring that controls are implemented.

Internally, Kyte Global is organised in teams, each dedicated to a specific service, usually revolving around a specific standard or regulation. Some of these are PCI DSS, ISO 27001, GDPR, Internal Audit, AML, Gaming, Penetration Testing, Training to name a few. Each team is made up of trained professionals, all experts in their own field.

Over the years, Kyte Global has established partnerships with suppliers that develop and implement industry leading solutions so that it can make recommendations to clients who require such services or products. Kyte is proud to have a network of partners that can assist its clients, big or small, in virtually all of the industries it operates in.

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News & Insights

Stay informed with our dynamic News and Insights section, where we share timely updates, industry trends, and expert perspectives to keep you ahead of the curve and informed about the latest developments in the field. Explore a wealth of valuable resources that empower you with knowledge and actionable insights for informed decision-making.

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DORA aims to ensure that financial institutions possess the operational resilience to withstand and recover from disruptions, including cyber attacks. This aligns perfectly with the risk-based approach advocated by ISO 27001, which establishes an Information Security Management System (ISMS) to identify, assess, and mitigate information security risks.

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