SOC 2

SOC 2 standard: what is it all about?

SOC 2 is a compliance framework developed by the American Institute of Certified Public Accountants (AICPA). It aims to ensure that service providers, particularly technology companies, comply with data management and protection principles. It is also referred to as " trust service criteria."

Why do we say "SOC 2" and not just "SOC"? Simply because there is already a SOC 1 standard! But since the latter focuses on financial controls, it is SOC 2 that interests us: it alone deals with the security and confidentiality of IT systems.

The principles of trusted services

SOC 2 is based on five fundamental principles of trust.

1. Security: Systems must be protected against unauthorized access, whether internal or external.
2. Availability: IS must be available for use as agreed or required.
3. Process integrity: Data processing must be complete, valid, accurate, timely, and authorized.
4. Confidentiality: Information designated as confidential must be protected as agreed or required.
5. Privacy: Personal information must be collected, used, stored, disclosed, and destroyed in accordance with the entity's commitments.

SOC 2 is essential for companies that handle customer data, particularly in the cloud computing, financial services, and IT sectors. It offers several advantages:

• Trust and credibility: certification demonstrates to customers that the company takes data security seriously.
• Competitive advantage
• Risk reduction: By following the best practices defined by SOC 2, companies can reduce security risks and data breaches.

SOC 2 certification process

Obtaining SOC 2 certification involves several steps.

#1 Initial assessment

The first phase consists of defining the objectives of your control system and ensuring that they are aligned with the principles of trusted services: security, availability, integrity, confidentiality, and data protection.

Alongside the objectives, it is necessary to understand the SOC 2 requirements and assess the current state of the company's controls and processes. This involves conducting an initial assessment, which is essential for identifying gaps between current practices and SOC 2 requirements.

#2 The development of controls

Step two: implement the internal controls necessary to meet these famous principles of trust.

Implementing SOC 2 controls requires a methodical approach:

• assess risks to determine potential threats and their impacts;
• Implement security policies and operational procedures that meet SOC 2 criteria.
• raise awareness and train employees;
• Establish monitoring systems to assess the effectiveness of controls and make continuous improvements.

#3 The pre-audit

Before the official audit, it is possible to conduct an internal audit to identify any shortcomings and remedy them in preparation for the big day.

#4 The official audit

An independent auditor assesses compliance with SOC 2 criteria.

There are two types of SOC 2 audits.

• Type I audit: evaluates the design of controls at a given point in time. It examines whether controls are properly designed but does not test their effectiveness over a period of time.
• Type II audit: evaluates both the design and operational effectiveness of controls over a period of time (usually between 6 and 12 months).

#5 The audit report

After the audit, the firm issues a report detailing the results. If the controls are deemed adequate and effective, the organization receives SOC 2 certification. This report can then be shared with customers and partners to demonstrate the organization's commitment to data security and protection.

Please note: SOC 2 certification is not a final step, but an ongoing process! Companies must constantly maintain and improve their controls to remain compliant with standards and respond to changing threats and regulatory requirements.

Why implementing SOC 2 is no small feat

Documentation challenges

Creating comprehensive documentation of policies, procedures, and controls is both complex and time-consuming. It requires a thorough understanding of trust services principles and trust service criteria.

Resources and skills

Like any cyber certification, implementing SOC 2 requires skilled human resources. Companies often need to train their staff or recruit information security experts, which can be costly and difficult to manage.

Adapting systems and processes

Companies must adapt or sometimes completely reorganize their internal systems to meet SOC 2 requirements: IT infrastructure, new security software, operational processes... everything is affected!

Companies must also ensure that their partners and suppliers comply with the same security and data protection standards. This often requires additional assessments and contractual agreements.

The cost

The SOC 2 certification process can be costly: it includes not only consulting and implementation fees, but alsothe audit itself. For some companies, particularly small and medium-sized ones, such a budget can be a real obstacle.

Some expert advice

To overcome these challenges, here are some best practices:

• Call on specialists, including cybersecurity and/or SOC 2 compliance consultants.
• adopt a risk-based approach, prioritizing controls based on the potential impact of risks;
• involve management to ensure adequate resources and overall commitment;
• prepare thoroughly for the audit by gathering and organizing all necessary documentary evidence in advance;
• Communicate with the auditor throughout the certification process, responding promptly to all requests for clarification and additional information.

You can also rely on specialized tools (such as Tenacy!), which will allow you to:

• automate repetitive tasks (evidence collection, monitoring of controls, etc.);
• centralize everything—controls, documents, and reports—in one place for better project management;
• continuously monitor systems to automatically detect compliance deviations;
• to simplify the creation and management of documentation;
• to collaborate better with teams and facilitate information sharing;
• facilitate the reporting process, a valuable feature in the context of audits;
• reduce long-term costs by minimizing time spent on manual tasks and avoiding errors.

In short

The SOC 2 standard is a crucial compliance framework for companies that manage sensitive data. It provides a set of controls that help ensure the security, availability, integrity, confidentiality, and privacy of information.

What is the advantage of SOC 2 certification? It allows companies not only to improve their security posture, but also to gain the trust of their customers and differentiate themselves in the competitive cybersecurity market.

But implementing SOC 2 is no easy task: it requires rigorous planning, adequate resources, full organizational commitment... and the right tools. To find out how Tenacy can help you obtain and maintain your SOC 2 certification, book a demo today!

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