Tag Archive: SOC 2

6 Reasons Why You Need SOC 2 Compliance

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Published 03/05/2020

System and Organization Controls for Service Organizations 2 (SOC 2) compliance isn’t mandatory. No industry requires a SOC 2 report. Nor is SOC 2 compliance law or regulation.  But your service organization ought to consider investing in the technical audit required for a SOC 2 report. Not only do many companies expect SOC 2 compliance from their service providers, but having a SOC 2 report attesting to compliance confers added benefits, as well. Having the report benefits your service organization in other ways, too. Here are six reasons to obtain a SOC 2 compliance report: Customer demand. Protecting customer data from unauthorized access and theft is a priority for your clients, so without a SOC 2 attestation (or SOC 3,…

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Here’s Why Regulatory Compliance Is Important

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Published 03/01/2018

The phrase regulatory compliance comes with the onomatopoetic groaning sound made by most people involved in it. Despite what many consider the drudgery of rules and pedantic details, regulatory compliance offers several benefits for companies. Why Regulatory Compliance is an Important Part of Business Today Any compliance officer will tell you that financial safety is the first benefit associated with regulatory compliance. Regulatory noncompliance costs organizations steep penalties. More importantly for the c-suite, regulatory compliance provides guidance that helps businesses succeed.  Compliance law evolved to help create parity in the marketplace while offering consumers a sense of security. Enterprises need compliance to prosper ethically. Often, however, regulatory requirements feel like a quagmire dragging down profitability. Easing compliance management burdens with…

Protecting Your Data From Ransomware

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Published 07/06/2017

On a certain aesthetic level, you have to admire ransomware attacks. At first glance they seem like just another headache under the broad category of “cybersecurity risk”—but nothing could be further from the truth. Ransomware is fundamentally different from run-of-the-mill threats like network penetration attacks or phishing scams to get the CEO to email employees’ personal data. Foremost, nothing gets “stolen” in the traditional sense of the word—which can mean, under a strict reading of the law, that ransomware attacks don’t need to be disclosed. That crucial distinction has big implications for your internal controls and third-party oversight so that your firm doesn’t fall into ransomware’s trap. Let’s take a look. First, ransomware doesn’t necessarily trigger a duty to disclose,…

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Scoping a SOC 2 Audit

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Published 05/16/2017

In today’s cybersecurity-challenged world, the System and Organization Controls for Service Organizations 2 (SOC 2) audit is a necessity for service providers including cloud service providers and cloud computing hosts and software-as-a-service (SaaS) providers. If your service organization doesn’t have SOC 2 certification documenting your security controls, you’re almost certainly losing business. For smaller organizations, however, passing a SOC 2 audit can be a complex task. To simplify the process, setting the scope of your SOC 2 audit correctly is crucial.  Define the scope too narrowly, and you might not provide the assurance your customers will want—prompting more SOC 2 audits in the future. Define it too broadly, and you waste money, time, and productivity as the audit disrupts daily…

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SOC Audits: What They Are, and How to Survive Them

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Published 04/12/2017

If you’re a service provider to public companies (or to any other organization that takes corporate compliance seriously) you’ll soon encounter the need for a SOC audit. Maybe a customer will ask for one; maybe your firm will volunteer to provide one to win a prospective client. Regardless, SOC audits are now a routine part of the compliance toolkit. So let’s talk about how to assure that the SOC audit you undertake is fit for purpose. First understand what a SOC audit is and what it does. “SOC” stands for “service organization controls”—so SOC audits are evaluations of the internal control at businesses that provide professional services. What kind of service firms? Any, really: law firms, consulting firms, outsourced IT…

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Keep Your Socs On: From SOC Compliance to SOC 2+ Reporting

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Published 12/13/2016

As more services move to the cloud, customers want more transparency from the companies that they buy from on how their data and information is being protected. As such, customers seek greater documentation from their potential vendors prior to engaging them. Vendor management policies, therefore, increasingly require a review of third parties and the third parties upon which those third parties rely. As customers seek greater comfort levels over the data security for their customers, documentation and reporting are increasingly becoming an asset to a marketing strategy. The goal of the SOC 2+ is to specifically address reporting concerns regarding internal corporate governance, risk management, and compliance processes. Many companies shy away from information security compliance programs because they add to the already…