Why a SOC 2 report is indispensable for your organization
In a time in which cyber threats and data leaks are becoming more common, it is important
for organizations to demonstrate that they take information security seriously. A SOC 2
report confirms that your organization meets security standards and handles customer data
carefully.
What are the benefits of a SOC 2 report and how do you prepare for a SOC 2 audit?
This page provides a detailed overview. This ensures you have the right information to meet
customer and legislative requirements.
What is a SOC 2 report?
A SOC 2 report is an independent assurance report that demonstrates that a service organization meets strict standards for information security and data management. The report is based on the Trust Services Criteria, consisting of five core principles:
Security – Protecting systems and data from unauthorized access and threats;- Availability – Ensuring that systems and services are accessible when needed;
- Processing integrity – Ensuring that data is processed accurately, completely and in a timely manner;
- Confidentiality – Limiting access to sensitive information to authorized individuals;
- Privacy – Protecting personal data in accordance with applicable laws and regulations.
With a SOC 2 report, your organization demonstrates that information security and data protection are structurally secured.
Different types of SOC reports
There are three types of SOC reports, each serving a different purpose:
- SOC 1
• Focus: Internal controls that could impact a client’s financial reporting.
• Target audience: Businesses such as payroll, claims processing, or payment processing.
• Report types: SOC 1 Type I and Type II. Type I evaluates controls at a specific point in time, while Type II examines the performance of these controls over a period (typically 3-12 months). - SOC 2
• Focus: Security and control measures related to the Trust Services Criteria, including security, availability, processing integrity, confidentiality, and privacy.
• Target audience: Businesses that want to demonstrate their security measures and best practices to a specific group of customers or partners.
• Report types: SOC 2 Type I and Type II, similar to SOC 1, but focused on security measures. SOC 2 reports contain detailed and confidential information and are typically only shared with customers and prospects who sign a non-disclosure agreement (NDA). - SOC 3
• Focus: Similar to SOC 2, but aimed at a broader audience and with less detail.
• Target audience: Companies that want to showcase their security practices to the public, for example, for marketing purposes.
• Report types: SOC 3 reports are less detailed than SOC 2 reports and do not contain confidential information. They can be made public as marketing materials.
The benefits of a SOC 2 report
Obtaining a SOC 2 report provides several benefits:
- Increased customer confidence – Demonstrable assurance of secure data processing;
- Competitive advantage – Differentiation in the market;
- Risk management – Understanding and managing security risks;
- Efficiency improvement – Optimization of internal processes by implementing best practices;
- Compliance with laws and regulations – Support for compliance with GDPR and other relevant legislation.
More and more companies are making a SOC 2 report mandatory for their IT suppliers. This makes certification not only a valuable investment, but also a strategic necessity.
A SOC 2 audit helps organizations improve their security processes and provides an independent assessment that creates trust with customers and partners.
How does a SOC 2 audit proceed?
To obtain a SOC 2 report, an organization goes through the following stages:9
- Preparation – Assessment of existing security measures via a baseline measurement;
- Scope determination – Determining which Trust Services Criteria are relevant to your organization;
- Execution of the audit – Controls based on documentation, interviews and samples;
- Reporting – Extensive audit report with findings and possible points for improvement.
A SOC 2 certification contributes to a solid information security strategy and strengthens the reliability of your organization.