What is SOC 2 compliance? 

SOC2 is a voluntary security framework designed by the American Institute of Certified Public Accountants (AICPA). It specifies how service organizations should manage customer data to ensure its security, availability, processing integrity, confidentiality, and privacy. SOC 2 surrounds the following Trust Services Criteria (TSC):

• Security: Protects against unauthorized access to systems and data.

• Availability: Ensures systems are available for operation per SLA.

• Processing Integrity: Verifies that system processing is complete, valid, accurate, timely, and authorized.

• Confidentiality: Protects sensitive information from unauthorized disclosure.

• Privacy: Addresses the collection, use, retention, disclosure, and disposal of personal information.

Also, note that there are two types of SOC 2 reporting:

SOC 2 Type I:

Here you evaluate the design of an organization's controls at a specific point in time. It provides a snapshot of whether the controls are suitably designed to meet the Trust Services Criteria (TSC) such as security, availability, processing integrity, confidentiality, and privacy. This type of audit is beneficial for organizations that need to quickly demonstrate their commitment to security practices to clients or stakeholders. It is often used by startups or companies new to compliance as a starting point

SOC 2 Type II:

Here along with the design, you review the operational effectiveness of controls regularly, usually from six months to a year. This works as evidence that the controls are functioning as intended over time. This offers greater assurance to clients and stakeholders as you can demonstrate that the organization consistently applies its controls effectively over time

Do you need SOC 2 compliance: 

SOC 2 compliance is particularly relevant for service providers that store, process, or transmit customer data, such as cloud service providers, SaaS companies, and IT management firms. Note that SOC 2 compliance is not legally mandated but is often required by customers as a standard for doing business with service providers who handle sensitive data. 

Are you one of the following?  

1. Cloud service provider

2. SaaS company

3. Financial service provider

4. Healthcare provider

5. Data center service provider

6. Business intelligence service provider

7. Managed service provider

8. Third-party vendor, handling sensitive information for a service provider

If yes, you will benefit from achieving SOC 2 compliance.

Why you should go for SOC2 Compliance?

By achieving SOC 2 compliance, organizations can establish trust with customers by showcasing their dedication to securing customer data and adhering to industry standards for privacy and security.

5 Steps to create a successful SOC 2 compliance program?

A structured approach involving planning, implementation of controls, audit preparation, and ongoing compliance maintenance is essential. Here are five steps to create and maintain a SOC 2 compliance program:

Step 1: Prepare and Plan

Before you begin implementing any controls, you must define the scope and objectives of your SOC 2 compliance program. Here is how you do it - 

• Define Objectives: Be clear on why your organization needs SOC 2 compliance (e.g., customer requirements, business growth).

• Understand Trust Services Criteria: Familiarize yourself with the five Trust Services Criteria (discussed above) and decide which ones are relevant to your organization.

• Determine Report Type: Do you need a SOC 2 Type 1 (point-in-time audit) or SOC 2 Type 2 (periodic audit)? 

• Define Audit process and scope: Identify the systems and processes to be included in the audit, including which Trust Services Criteria apply to your organization.

• Communicate with all stakeholders: Establish clear communication channels with internal teams, such as IT, HR, and legal, to ensure these stakeholders understand their roles in the compliance process.

• Conduct Readiness Assessment: Identify gaps between your current security posture and SOC 2 requirements

2. Control Implementation

Once you have scoped out your SOC 2 program, the next step is implementing the necessary security controls.

• Perform Gap Analysis: Identify existing controls and those that need to be implemented based on your readiness assessment.

• Assign Control Owners: Assign clear responsibility for each control to specific team members or departments.

• Implement Controls: Implement the required controls across your systems. These may include access control policies, data encryption, incident response plans, etc.

• Test Controls: Test each control to ensure it works as intended.

• Automate: Use automation tools like Vanta, Sprinto, or Scrut Automation to streamline evidence collection and control monitoring. We will cover these tools later in this blog.

3. Audit Preparation

Once the controls are in place, prepare for the SOC 2 audit by gathering evidence:

• Gather Evidence: Collect all the documentation that proves your controls are functioning as required. Automation will help streamline this process by collecting evidence automatically from various systems.

• Conduct Internal Audit/Readiness Check: This will help identify any remaining gaps and prepare you for an external audit.

• Collaborate with Auditors: Work closely with your auditors to ensure they have access to all necessary documentation and systems. 

4. Completing the Audit

Once everything is in place:

• Engage an Auditor: Hire an accredited auditor to conduct the SOC 2 audit.

• Provide Evidence: Submit all required evidence to the auditor for review.

• Address Findings: If any deficiencies are found during the audit, work on remediating them promptly.

5. Maintaining Compliance

SOC 2 compliance is not a one-time activity; it requires continuous monitoring and updates.

• Continuously monitor your security posture and ensure ongoing compliance.

• Update policies and procedures regularly based on changes in technology or business processes.

• Conduct regular training sessions for employees on security best practices and compliance requirements.

• Ensure that third-party vendors also comply with SOC 2 requirements by conducting regular vendor risk assessments.

Tools to assist with SOC 2 Compliance

Each of the tools has its strengths and opportunities, so you may want to ensure that you pick the right tool for the outcome you desire and not just replace your Jira or Excel spreadsheets. Several software solutions can help automate various aspects of SOC 2 compliance:

1. Vanta – Automates evidence collection and provides real-time monitoring of controls.

2. Sprinto – Helps SaaS businesses streamline SOC 2 compliance by automating manual tasks.

3. Drata – Offers continuous monitoring services and real-time views of compliance programs

4. Scrut Automation – Automates over 65% of evidence collection across application landscapes.

5. Secureframe – Provides continuous monitoring across tech stacks and automates policy distribution.

Who can provide SOC 2 Compliance Certification?

Reach out to us (info@jarato.io or by filling out this form - https://www.jarato.io/contact). Jarato’s expert team can help with your immediate and ongoing compliance needs and covers process, planning, and technology needs. We prepare organizations for internal audits and collaborate with external auditors to make your compliance process smooth.