Why SOC 2 Matters:
SOC 2 compliance assures clients and stakeholders that your organization has the appropriate security and privacy controls in place to protect sensitive data. It demonstrates a commitment to industry best practices, builds trust with customers, and helps mitigate risks related to data security and compliance
Over View
SOC 2 (System and Organization Controls 2) is an auditing procedure designed to ensure that service providers securely manage data to protect the privacy and interests of their clients. It is particularly important for companies that store customer data in the cloud, like SaaS providers, and is based on five Trust Service Criteria (TSC) established by the American Institute of Certified Public Accountants (AICPA).
Below is an outline of the 5 Trust Service Criteria, with a brief description of each
1. Security
Definition: This criterion focuses on protecting information and systems from unauthorized access (logical and physical), unauthorized disclosure, or damage to systems that could affect the availability, integrity, confidentiality, and privacy of the data.
Key Controls:
Firewalls, intrusion detection systems (IDS), multi-factor authentication (MFA)
Security policies and procedures (access controls, encryption)
Incident response and vulnerability management practices
2. Availability
Definition: The availability criterion ensures that the system, products, or services are available for operation and use as agreed upon or required by a contract or service level agreement (SLA).
Key Controls:
System monitoring, performance monitoring, and data backups
Redundancy and disaster recovery plans (DRP)
Incident management and response to minimize downtime
3. Processing Integrity
Definition: This ensures that system processing is complete, valid, accurate, timely, and authorized to meet the business’s objectives. It ensures that data processing is correct and consistent over time
Key Controls:
Input validation checks, error handling, and process monitoring
Transaction processing, logging, and auditing
Change management controls
4. Confidentiality
Definition: Confidentiality pertains to protecting sensitive information (like trade secrets, personal information, or financial data) that is intended for a specific group of people or organization from unauthorized disclosure
Key Controls:
Encryption of data at rest and in transit
Access control mechanisms ensuring only authorized users can access confidential data
Confidentiality agreements and policies
5. Privacy
Definition: The privacy criterion ensures that personal information is collected, used, retained, disclosed, and disposed of in line with the organization’s privacy notice and relevant regulatory requirements, such as GDPR or CCPA.
Key Controls:
Data encryption and anonymization techniques
Consent mechanisms for data collection and usage
Policies and procedures for handling personal data (disclosure, retention, and disposal)
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