Due to persistent cybersecurity concerns in today’s world, a growing number of companies are focusing on this issue and incorporating risk management procedures and policies into their business operations. Thus, many large and middle market companies have instituted vendor management policies whereby any organization that they partner with, and which has access to their data and systems, must successfully demonstrate robust digital security protocols are in place.
This confirmation is generally achieved via completion of detailed security and information technology (“IT”) infrastructure questionnaires. Completing questionnaires on a vendor-by-vendor basis can be very time consuming, and burden a company’s information technology staff.
As an alternative, a company can obtain a third party security audit report, known as SOC 2 report; which can be given in response to the request to complete a security questionnaire, or in anticipation that such a request might be made. The SOC 2 (“SOC” stands for Service Organization Controls) address Security, Confidentiality, Processing Integrity Availability and Privacy relative to a company’s acquisition, processing, storage, transport and access to customers’ data and systems.
A SOC 2 security report, which is accompanied by an opinion of a licensed third party service auditor, addresses the cybersecurity concerns of an entity’s customers, and can eliminate the need for completing multiple security questionnaires. Having a SOC 2 security report will also position a company to attract larger customers. Successful completion of a SOC 2 report enables the company to display the SOC logo on all communications (digital and print), which illustrates to the marketplace that the company has embraced digital security.