How can you evaluate data security controls with SOC 2 criteria?

Like a building inspector evaluating the structural integrity of a house over time, I view SOC 2 as an ongoing process to systematically inspect, strengthen, and prove the resilience of our data security defenses against threats that increasingly test their limits.

The SOC 2 reporting framework enables organizations to assess their system of organizational controls against the Trust Services Criteria developed by the AICPA. These criteria cover up to five principles (Security, Confidentiality, Availability, Integrity and Privacy) which outline control objectives to be met. Organizations can use a SOC 2 report to provide third party assurance to their customers and other stakeholders that their system of controls has been designed (Type 1) and operating effectively over a period of time (Type 2). Type 2 reports enable user organizations to leverage a cloud service provider’s assured controls for “compliance inheritance”, allowing them to rely on the provider’s controls to meet their own compliance.

SOC 2 compliance, created by the American Institute of CPAs, is a system for protecting and managing sensitive data in technology and cloud computing companies. It focuses on confidentiality, availability, processing integrity, security, and privacy of client data. Businesses must undergo a third-party audit to become SOC 2 compliant, and those who successfully complete the process receive a SOC 2 report, demonstrating their commitment to privacy and data security.

A SOC 2 report is a certificate that shows how well an organization protects its customers’ data. It is based on five principles: Security, Confidentiality, Availability, Integrity and Privacy. A Type 1 report shows the design of the controls, and a Type 2 report shows how they work over time. A SOC 2 report can also help the customers to meet their own compliance needs by using the provider’s controls.

To get a SOC 2 certificate, organizations need to follow a step-by-step process to check and improve their data security and privacy practices. They need to know the five principles of Trust Service Criteria, choose the scope of their SOC 2 audit, identify and manage their risks, set up security policies and controls, train their staff, monitor their performance, hire a trusted auditor, fix any issues, and renew their certificate every year. This process helps businesses to protect their customers’ data and comply with SOC 2 standards.

To effectively apply SOC 2 criteria, organizations should follow a systematic approach to evaluating and improving their information security and privacy procedures. This includes understanding the Trust Service Criteria, defining the scope of the SOC 2 assessment, conducting a comprehensive risk assessment, implementing security policies, documenting controls, training staff, conducting constant monitoring, hiring a reliable third-party auditor, addressing gaps, and maintaining annual certification. This approach ensures businesses can handle sensitive data with confidence and maintain their certification and compliance with SOC 2 standards.

SOC 2 is a security and compliance standard that offers guidelines for service organizations to protect sensitive data from unauthorized access, security incidents, and other vulnerabilities. It is part of the System and Organization Controls (SOC) suite of services developed by the American Institute of Certified Public Accountants (AICPA). A SOC 2 report is often requested by customers and business partners of outsourced solution providers to provide assurance that those organizations have adequate systems and controls in place to protect critical business information. At the end of the day, it also results in cost savings.

SOC 2 standards offer numerous benefits for companies handling sensitive consumer data. They enhance security posture, build customer trust, provide a competitive advantage, mitigate risks, improve operational efficiency, and ensure legal and regulatory compliance. Compliance with SOC 2 helps identify and reduce potential hazards, reducing the likelihood of security issues and operational disruptions. It also enhances operational efficiency by creating well-documented policies and procedures and promotes legal and regulatory compliance, enhancing vendor relationships in sectors like cloud services where data security is a shared responsibility. It ensures data privacy and confidentiality.

SOC 2 is a standard that helps service organizations protect their customers’ data from security threats and risks. It is part of the SOC services by the AICPA, which are reports that show how well organizations manage their data. A SOC 2 report is often needed by customers and partners who want to trust the organizations they work with. SOC 2 benefits include better security, customer trust, competitive edge, risk reduction, operational efficiency, and compliance.

SOC 2 is a standard that helps you check and improve your data security controls. To use it well, you need to plan ahead and decide what you want to assess. You can also use other data security frameworks and standards, such as ISO 27001 or NIST SP 800-53, to help you match your controls with the SOC 2 criteria and make the assessment easier. Moreover, you can ask for help from experts and peers, such as auditors, consultants, or other data architects, to help you understand and apply the SOC 2 criteria, and to share their tips and experiences.

I highly recommend automating as much of the compliance effort, ideally 100%, as you can. Build compliance to regulations (in general) into your continuous database integration strategy.

Other considerations include having a risk mitigation plan for how to respond to incidents, how to spot and stop threats, and how to follow the rules and regulations that apply to your organization.