Service Organization Control (SOC) 2 is an auditing process that ensures your organization’s security providers manage your data in a manner that protects your interests and safeguards your clients’ privacy. Maintaining SOC 2 compliance also helps to fulfill other regulatory requirements by establishing IT best practices across your enterprise.

SOC 2 differs from the Payment Card Industry Data Security Standard (PCI DSS), which has more rigid requirements. SOC 2 reports are unique to each organization, though they comprise five Trust Service Principles:

• Security: The security principle ensures that sufficient physical and electronic controls are in place to protect sensitive data. It also provides evidence of these controls and ensures the implementation of appropriate security management steps to respond to threats.
• Availability: This principle covers the ability to identify negative trends regarding data availability. It applies to any organization that relies on data centers or telecommunications companies or provides services that other entities need to function efficiently.
• Processing integrity: This area of SOC 2 compliance entails the implementation of quality assurance process monitoring to protect the integrity of the company’s transactions. For instance, if a business provides IT services, it must outline its methods for safeguarding customer data.
• Confidentiality: Achieving SOC 2 compliance requires the ability to demonstrate that your organization has the technical and procedural means to honor MSAs, DSAs and other contractual arrangements containing confidentiality clauses.
• Privacy: SOC 2 provides a privacy framework that builds trust with customers and stakeholders.

Negligence is 100% avoidable — but once you’re found guilty of it, the fees associated with hiring lawyers, consultants and internal specialists skyrocket quickly. Remaining in compliance with SOC 2 (and having a software that documents your due diligence efforts along the way) helps prevent negligence.

Another risk you’re facing by neglecting SOC 2 compliance is missing out on potential customers; many companies and individuals look to ensure that their service providers are keeping their information safe. They’ll often ask for a SOC 2 compliance report, and if you cannot provide one, they may go elsewhere.

This inadvertence can also turn existing customers away. In addition to the incident and negligent legal liabilities, the loss from customer non-renewals and cancellations is significant: it’s estimated that the total average cost of a data breach is $3.8 million.

Implementing SOC 2 security controls offers numerous benefits for your organization:

• Enhanced security assurance: The in-depth nature of this auditing process provides more insight into your security controls.
• Cost savings: Getting SOC 2-certified helps to reduce the likelihood of data and security breaches that can have significant financial consequences.
• Protection from reputational damage: By minimizing your security risk, SOC 2 compliance helps to protect your organization’s brand and reputation.
• Competitive advantage: Becoming SOC 2-compliant demonstrates to potential customers and business partners that you’ve taken appropriate steps to safeguard their data.
• Process improvements: Implementing SOC 2-compliant measures helps you streamline your processes and controls to optimize your cybersecurity efforts.