SOC-2 has become a buzzword in the SaaS industry and amongst other cloud-based services. The SOC-2 compliance has become a necessity for businesses storing customer data because of the extra layer of security it provides.
The importance of this compliance is very high for third-party vendors because the precautionary measures it enforces, promotes protection against malware, identity theft, and ransomware. What else is there to know about SOC-2 and why is it important?
What is SOC-2?
The SOC-2 compliance can be compared with ISO 27001 audit but the former primarily focuses on third-party vendors. The American Institute of CPAs is the developers of this compliance code that regulates how customer data is used.
Companies that use SOC-2 compliance should not consider it as the only code they should follow. In fact, this particular compliance is the entry-level requirement for SaaS providers. Businesses should look for more methods to implement on their services other than the minimum requirements outlined by this compliance code.
The core functionality of SOC-2 compliance is providing clear and concise guidelines for securing the services provided by third-party vendors. Through consistent audits, the AICPA can be satisfied with the security measure you are implementing or it might issue recommendations to improve.
What principles does SOC-2 operate on?
There are five core concerns that SOC-2 compliance stresses to SaaS businesses. Those concerns that should be addressed by the company include the availability, integrity, security, privacy, and confidentiality of the service. To ensure that you meet these requirements, your business might need SOC 2 compliance tools.
These technological tools developed by companies like JupiterOne will improve the service you provide as a SaaS business according to the 5 principles outlined above. The services provided by these compliance tools include controlling access using 2FA and encryption.
You can also benefit from features such as a disaster recovery plan and security incident handling from these tools. The tools will also detect intruders and sound relevant alarms but will sift the data, so you only get alerts that really matter instead of false positives.
Why should you implement SOC-2 compliance?
The importance of implementing SOC-2 compliance cannot be stressed enough. It is essential for third-party vendors to comply with the regulations of the SOC-2 compliance code. One of the main reasons is that SOC-2 regulations protect you as a business to minimize the effects of a cyberattack.
To comply, your website and the entire system will be audited and you will be provided with a performance report. That can help you improve where it is necessary, providing a better experience for the customers that use the services provided by the business.
Above that, businesses that have SOC-2 certification will receive more trust and loyalty from customers. Those benefits maximize profits and minimize the risk of losing revenue if a sophisticated ransomware attack would be fledged against your system.
How can this compliance be implemented?
To implement this compliance code to the SaaS business you are running, there are specific criteria your system should meet. The first place to begin making way to being SOC-2 compliant is setting up access control for web applications.
Afterward, you should create a service level agreement (SLA) that states the availability of the system to customers. You should make this SLA relevant to security concerns and afterward, ensure that your software is reliable. To simplify the process of being SOC-2 compliant, you can easily opt for service providers that offer software that does all of the work for you.