All those planning or already conducting business activities in USA might be asked to be compliant with SOC2. SOC2 is a voluntary compliance standard for service organizations that manage customer data (PII & GDPR).
Here is a summary of what SOC2 is and why it is important:
SOC2 stands for Service Organization Controls 2 and was developed by the American Institute of CPAs (AICPA). It defines criteria for how service providers should protect the interests and privacy of their customers based on five trust service principles: security, availability, processing integrity, confidentiality, and privacy. Unlike other standards, such as PCI DSS, SOC2 reports are unique to each organization and designed to meet their specific business practices and needs.
SOC2 certification is issued by external auditors who assess the extent to which a service provider complies with one or more of the trust principles based on the systems and processes in place. A SOC2 report provides assurance to customers and business partners that the service provider has the appropriate security measures and controls to safeguard their data.
SOC2 is especially relevant for technology service providers or SaaS product companies that store customer data in the cloud. It is a globally recognized standard for information security and the basis for other standards, such as TISAX®. SOC2 can help service providers gain more business, demonstrate trustworthiness, and reduce the risk of data breaches and legal liabilities.
SOC2 compliance exists in 2 forms:
Type 1 report evaluates whether the service organization’s controls are designed properly as of a specific point in time. It provides assurance that the controls are suitable to meet the trust service criteria. A Type 1 report can be completed in a matter of weeks.
Type 2 report examines how well the service organization’s controls operate over a period of time (typically 3-12 months). It provides assurance that the controls are effective and function as intended. A Type 2 report can take up to 12 months to complete and is more expensive than a Type 1 report.
The main difference between the two types of reports is the coverage and depth of the audit procedures performed. A Type 1 report describes the controls that have been installed, while a Type 2 report provides evidence about how those controls have been operated over a period. That includes connecting your AWS, Jira, Office 365, GitHub and other tools to daily verification on mentioned principles: security, availability, processing integrity, confidentiality, and privacy.
Some customers may require a Type 2 report to verify the ongoing security and reliability of the service organization, while others may accept a Type 1 report as a short-term solution or a first step towards a Type 2 report. The choice of report type depends on the service organization’s business needs and customer expectations.
If your organization needs help with SOC2 compliance, please contact us on sales@boost.hr
