In today’s times, Information and Data security is one of the main concerns for all organizations, including those that outsource key business operation to third-party vendors (e.g., SaaS, cloud-computing providers, outsourcing key activities etc.). If misused data by application and network security providers can leave enterprises vulnerable to attacks, such as data theft, blackmail, and malware installation.
SOC 2 is an auditing procedure that ensures your service providers securely manage your data to protect the interests of your organization and the privacy of its clients. For security-conscious businesses, SOC 2 compliance is a minimal requirement when considering a vendor.
What is SOC 2
Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 defines criteria for managing customer data based on five “trust service principles”—security, availability, processing integrity, confidentiality, and privacy.
There are two types of SOC reports:
Type I : describes a vendor’s systems and whether their design is suitable to meet relevant trust principles.
Type II : details the operational effectiveness of those systems.