When you first hear the term “SOC 2 Type 2 compliance,” it might sound like you’re entering some kind of information security maze. We get it – it feels complex, layered, and at times overwhelming. But guess what? It doesn’t have to be.
Whether you’re just starting out or are somewhere in the middle of the journey, SOC 2 Type 2 compliance is designed to help your business strengthen customer trust. With the right approach, getting SOC 2 certified can be a straightforward and – dare we say – rewarding journey.
Join us as we dive into the ins and outs of achieving SOC 2 compliance – specifically Type 2 – and share some pro tips to help you make this process as smooth as possible.
SOC 2 Compliance Explained
Before we get started, let’s cover the basics: what SOC 2 Type 2 compliance actually is and why it’s an absolute must for your business.
SOC 2 (System and Organization Controls 2) is a security framework that provides a set of compliance requirements for technology-based companies that use cloud-based storage.
Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 is all about how your business manages data – specifically customer data – making sure it’s secure, available, confidential, and protected from unauthorized access.
Although not legally required, SOC 2 is a highly-regarded, voluntary compliance standard that outlines how your organization should be managing internal controls and protecting customer data.
SOC 2 Type 1 vs. SOC 2 Type 2: What’s the Difference?
There are two types of SOC 2 reports, and understanding the difference is key to knowing what’s expected of you:
- SOC 2 Type 1: This evaluates the design of your security systems at a single point in time. It’s like a snapshot of your controls at one moment – do they look good on paper?
- SOC 2 Type 2: This goes deeper. It not only looks at your controls but also evaluates how well they’ve been operating over a period of time (usually between 3 to 12 months). Essentially, it’s about proving that your processes work consistently. Understandably, Type 2 is the one customers tend to care about the most which is why it should be at the top of your to-do list.
The Five Trust Service Principles
SOC 2 revolves around five core principles known as the Trust Service Criteria. What’s important to note here is that these principles form the foundation of your SOC 2 Type 2 controls.
Let’s break them down:
- Security: Protecting data from unauthorized access using robust measures like firewalls and intrusion detection.
- Availability: Guaranteeing services are consistently operational, as per agreed terms.
- Processing Integrity: Ensuring error-free processing and timely delivery of data.
- Confidentiality: Protecting confidential data from being accessed by unauthorized individuals.
- Privacy: Properly managing the personal information you collect.
Depending on your business operations, your company might choose to focus on one or all of these TSPs to include in the scope of your SOC 2 report. Now we know that might sound like a lot but each TSP has specific requirements that companies meet with their internal controls.
PS: Security is non-negotiable.
Preparing for SOC 2 Type 2 Compliance
We’ve all heard the saying, “failing to prepare is preparing to fail”. Well, this is especially true when it comes to SOC 2 Type 2 compliance.
Preparation is key because the SOC 2 Type 2 audit scrutinizes not just your controls, but how well they function over time. Yep, that’s right – it’s not a one-off deal, but rather an evaluation of how you continuously monitor your security controls.
So, the question is: how can you ensure you’re adequately prepared for your SOC 2 audit? We’ve broken it down into two key steps.
- Conduct a Gap Analysis
The first line of action is completing a gap analysis. This will essentially help you figure out what gaps exist between where you are now and what’s needed to meet SOC 2 Type 2 compliance requirements and earn that SOC 2 stamp of approval.
Part of this process will include reviewing your existing documents, policies, and processes – are your security procedures documented? Are your access control measures effective? These kinds of questions will help identify vulnerabilities and highlight any areas that need a little TLC.
- Set Up and Document Controls
SOC 2 controls are the security measures you put in place to protect customer data and ensure your systems are operating as intended, such as password policies or encryption standards.
The key is to document everything, and we mean everything – how each control works and why it matters. During your audit, your auditor will want evidence that your controls not only exist but are consistently followed.
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Pro Tips for Achieving SOC 2 Type 2 Compliance
Now that you (hopefully) don’t flinch at the word “SOC 2 type 2 compliance” and are a little more familiar with the basics, let’s talk about some practical tips to make your journey to SOC 2 Type 2 compliance a lot smoother.
- Automate, Automate, Automate
As a compliance automation platform, automation is in our DNA, so you know we’re going to rave about this one. One of the biggest hurdles businesses face during SOC 2 preparation is keeping track of all the controls, policies, and evidence required. Compliance automation tools can help by streamlining tedious tasks like evidence collection and tracking the effectiveness of your SOC 2 controls in real-time.
With automation, you can save a ton of time, reduce the risk of human ‘whoopsies’, and always know exactly where you stand in your SOC 2 Type 2 compliance journey.
- Create a Culture of Security
We hope you’re the commitment type because SOC 2 Type 2 isn’t just a one-time task – it’s an ongoing commitment to security. The best way to ensure long-term success is by fostering a company culture where security is always top of mind. This means regular security awareness training for your employees, reminders about security protocols, and making it easy for your team to follow them.
When security becomes second nature to your staff, SOC 2 Type 2 compliance becomes a lot easier to maintain.
- Don’t Rush the Process
When customers request proof of SOC 2 Type 2 compliance, it’s easy to go into full panic mode. Here’s some advice: take the time to properly set up your controls, ensure everything is well-documented, and ensure your team understands the procedures.
You’ll likely need a project manager to oversee the compliance process; however, if you don’t have an in-house CISO or compliance expert, consider leveraging external specialists. Rushing the process by trying to do it all yourself will likely cause you to miss key compliance requirements, costing you more time and money in the long run. Moral of the story – take your time and do it right the first time.
The Benefits of SOC 2 Type 2 Compliance
It’s no secret that SOC 2 Type 2 compliance is an investment, so you might be wondering, is it really worth the hassle? Absolutely.
Enhancing Customer Trust
You want your customers to trust you, right? Well, one of the biggest benefits of being SOC 2 Type 2 compliant is the trust it builds with both existing and potential customers. With data breaches and security concerns on everyone’s mind, SOC 2 Type 2 compliance leaves no doubt that you take your customers’ data security seriously and that you have the systems in place to protect it.
Gaining a Competitive Edge
In many industries, having a SOC 2 Type 2 report can be the difference between landing a new customer or losing them to a more security-savvy competitor. Customers are far more likely to choose vendors who clearly have their finger on the pulse when it comes to strong data security practices – and rightly so. I mean, what would you choose? Now you can’t say we didn’t warn you…
Internal Security Improvements
The process of becoming SOC 2 Type 2 compliant forces you to take a closer look at your internal processes which, in our opinion, is a major plus. This often leads to improvements in efficiency, security, and even employee accountability. And what does that mean? By the end of the process, your company will be more secure and better organized. What a win!
Selecting the Right Auditor
Choosing the right SOC 2 auditor for your SOC 2 Type 2 audit could be what makes or breaks your business becoming SOC 2 compliant. The auditor at hand will be responsible for evaluating your controls, so it’s essential you find someone with a good reputation who really understands your industry and unique business challenges.
Here’s a few things to look out for:
Look for Relevant Experience
When selecting a SOC 2 auditor, look for someone who has proven experience in your industry. Different sectors have specific security risks, so having an auditor with extensive industry-knowledge will know exactly what to look for.
Ask for References
Don’t be afraid to ask potential auditors for case studies or references from other companies they’ve worked with. This can give you a sense of how thorough they are and whether they’re a good fit for your business.
Communication is Key
Finally, make sure you choose an auditor who communicates clearly and regularly. The SOC 2 Type 2 time to audit can take several months, so you’ll want someone who keeps you updated on progress and any issues they find along the way.
Fast-Track the Process to SOC 2 Type 2 Compliance
Achieving SOC 2 Type 2 compliance might seem daunting at first, but with the right preparation and mindset, it’s absolutely doable. By setting up the right controls, fostering a security-focused culture within your team, and choosing the right auditor, the process becomes much more digestible. SOC 2 Type 2 compliance is key for enhancing your overall approach to security and compliance, which is why it’s definitely worth the effort.
With tools like compliance automation software, you can fast-track your way to SOC 2 Type 2 certification and have that SOC 2 report in hand in no time! Scytale’s platform, along with a dedicated team of compliance experts, gives you the tools and guidance to breeze through the process without any hiccups.
