What is SOC 2 Compliance?

As a SaaS firm, there are various security policies that you need to comply with. These are in place to show users of your services that their information is being kept secure and private.

This certification can give your firm the edge over competitors and indicates that you are a brand to trust, as well as ensuring all user information is secure within your programs. In this guide to SOC 2 compliance, we are going to share how you can avoid these issues and ensure your company is compliant in the right way.

All companies within this field now require a SOC 2 compliance policy, and the process to obtain this can be difficult without the correct proof. Failure to provide enough proof to the SOC 2 auditors can cause red flags on your company name in terms of exceptions, which can cause a permanent black mark against the brand.

What Is SOC 2 Compliance?

SOC 2 stands for System and Organizational Controls and is a voluntary compliance standard developed by the American Institute of CPAs. 

This standard is in place to specify how organizations and businesses need to manage their customer’s data. All these policies under this are based on the overall Trust Services Criteria (TSC), which include:

• Security
• Availability
• Confidentiality
• Processing Integrity
• Privacy

With that being said, SOC 2 is a form of compliance protocol that indicates whether an organization or business accesses consumer data securely, according to these guidelines. Many areas of the business are assessed to determine the security measures in place, including overall data protection and cloud security, to name but a few.

These are done in the form of SOC reports, which too many failures result in exceptions which are essentially red flags against your company.

To prove that your company is SOC 2 compliant, you need to have proof of the various security measures already in place regarding consumer data. Failure to provide this proof cause the exceptions, which can have a permanent effect on the reputation of the business if not successfully overturned.

Do I Need SOC 2 Compliance?

Now that you understand what this policy is about, it is time to determine whether it is something that affects your business.

SOC 2 compliance is required by all businesses and organizations that store user data in the cloud. Due to the fact many organizations are now software-focused, almost all companies interact with the cloud in some capacity, meaning SOC 2 compliance is needed across all business sectors and by all sized organizations.

This compliance policy indicates to users that you will protect their information and keep them safe. Internet security is a large concern for all kinds of consumers, so having these policies in place can be beneficial for all brands and organizations regardless of the size or sector.

As well as indicating the safe practices of your company, the SOC 2 compliance process can also provide support to the company in terms of data loss circumstances.