Who needs a SOC 2 report?
SOC 2 is the most common security framework technology companies in the United States rely on today. But do you need it? That depends. Below are 6 reasons why companies are getting SOC 2 compliant.
Customer Requests a SOC 2 Report
To ensure their own security and compliance, many enterprise, and mid-market customers will ask you to share your SOC 2 report. SOC 2 is increasingly becoming a competitive advantage in the sales process as the de facto standard for information security in software. Without a SOC 2 report, you may see some sales processes stall or delay during intense procurement and security reviews. You may also lose deals to your competitors that have a SOC 2 report available.
Handling Sensitive Customer Data
Whether you’re using, storing, accessing, or processing customer data, it’s a best practice to get a SOC 2 report. Completing the SOC 2 process will help you meet your customer's expectations of protecting their data. The SOC 2 report assures you and them that you’re safeguarding data properly and following industry-standard practices.
The SOC 2 framework strengthens security by requiring the company to comply with a variety of internal controls specific to your company. It emphasizes the importance of identifying and mitigating risks, auditing vendor security, reviewing access controls, performing security awareness training, business continuity planning, and many more fundamental security and compliance measures that will level up your company’s security posture.
Satisfy Contractual and Regulatory Requirements
To get a SOC 2 report, companies must build and document a number of policies and processes, streamlining requirements such as backup recovery and security incident breach notification steps that are commonly mandated by regulations such as GDPR and HIPAA. Taking the steps to put these policies and processes in place ensures that responsibility for ownership is defined. This allows your company to quickly tackle identified issues, breeze through due diligence for mergers and acquisitions, fundraising, or other major company events, more confidently address any legal and regulatory issues and easily respond to any customer's compliance requests.
Manage Risks with SOC 2 Compliance
SOC 2 enables you to create a framework for identifying and addressing risks to your business, whether they stem from potential fraud, natural disasters, security attacks, or faulty operational practices. Risk management is often overlooked but is crucial to a company that wants to stay secure, grow, and understand where else they can continue to improve.
Build a Security Culture
Building the internal controls necessary for SOC 2 helps to foster an understanding of security throughout your organization. We emphasize to start as early as possible, be transparent to team members about the measures you’re taking, and encourage them to honestly report any potential risks or violations. Security isn’t just the responsibility of senior management, CISO, or the engineering department – it’s everybody’s responsibility.