What is SOC and Why is it Important?

Service Organization Control (SOC) compliance refers to a type of certification in which an organization completes a third-party audit that shows certain controls your organization has. SOC compliance is also applicable to supply chain and SOC cybersecurity.

SOC reports can be considered a competitive advantage benefiting an organization in terms of money and time. It utilizes third-party and independent auditors to examine different aspects of an organization, including:

  • Availability
  • Confidentiality
  • Privacy
  • Processing integrity
  • Security
  • Controls related to Cybersecurity
  • Controls related to Financial Reporting

SOC reports enable a company to feel confident that potential service providers are operating compliantly and ethically. Although audits can be tricky, they can offer immense security and trust. SOC reports help establish the trustworthiness and credibility of a service provider.

Several service organizations, such as data center companies, SaaS providers, loan servicers, and claim processors, are needed to undergo a SOC examination. These organizations need to store their clients’ or user entities’ financial data or sensitive data. Any company providing services to other companies or users can benefit from the SOC examination. A SOC report not only lets our clients know that the company is legitimate but also reveals the flaws and weaknesses of our controls through assessment processes, allowing us to always be better.

What does SOC 2 – Type 2 mean?

SOC 2 offers two types of reports: Type 1 and Type 2. While both reports evaluate an organization’s controls and processes, Type 2 provides a more comprehensive assessment.

Importance of SOC 2 Type 2:

  1. Demonstrates Commitment to Data Security: SOC 2 Type 2 certification is a powerful tool for organizations to showcase their dedication to protecting customer data. It reassures clients, partners, and stakeholders that the organization has implemented robust security measures and complies with industry best practices.
  2. Enhanced Trust and Competitive Advantage: In an era where data breaches and cyber attacks regularly make headlines, customers prioritize working with organizations that prioritize their data security and privacy. SOC 2 Type 2 certification can give organizations a competitive edge by demonstrating their commitment to meeting stringent security and compliance standards.
  3. Risk Mitigation: SOC 2 Type 2 assessments provide a comprehensive evaluation of an organization’s controls and processes. By identifying potential vulnerabilities and weaknesses, organizations can proactively address any gaps in their security measures, mitigating the risk of data breaches and other security incidents.
  4. Regulatory Compliance: SOC 2 Type 2 certification assists organizations in meeting various regulatory requirements. It aligns with data protection laws, such as the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), among others.
  5. Partner and Customer Expectations: Many organizations today require their vendors and service providers to undergo SOC 2 Type 2 audits as part of business as usual.

Summary

In an increasingly interconnected and data-driven world, organizations must prioritize the security and privacy of customer data. SOC 2 Type 2 certification offers a robust framework for assessing and demonstrating an organization’s commitment to data security, availability, processing integrity, confidentiality, and privacy.

Achieving SOC 2 Type 2 compliance provides Digital Asset companies with enhanced trust among stakeholders, and ensures regulatory compliance. By undergoing regular audits and assessments, organizations can continuously improve their security controls, mitigating risks and instilling confidence in their clients and partners.

These efforts, along with our ISO 27001, ISO 27017, ISO 27018 & ISO 9001 certifications, provide solid evidence that KYAX is deeply committed to delivering exceptional services to our clients and provide proof of our implementation of essential internal controls. We’re proud to be recognised as a leading Digital Asset company that has obtained these necessary certifications and awards.

All certifications available upon request here.

Published On: June 10th, 2023 / Categories: Uncategorised /

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