SOC 2 Compliance for Start-Ups

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Information security is always supposed to be a significant aspect.

But, nowadays, with almost every business going online — even before having a storefront, information security proves to be quite crucial than ever before. And honestly, it isn’t hard to understand. Why is it so critical to possess information security, given the circumstances of today’s business environment?

There are a lot of outlines about how to use various information security technologies. But there is seldom any explanation about information security standards and what to pick for which kind of information.

The technologies change by the hour — and so does the threat of information theft.

It calls for a need for compliance with your company’s information security.

In this blog, we will specifically learn about one such compliance technique, that is, SOC.

What is SOC?

Service Organizational Control or abbreviated as SOC is an auditing process. It is a framework and third-party verification of an organization’s enactment of clientele data management.

It insinuates that a company’s data is well-contained and protected against security threats.

It was designed to help businesses identify whether their partners and suppliers are capable of handling and controlling the provided data — safely, fulfilling their customers‘ interests, and protecting their privacy.

What is SOC 2 compliance?

  • There are two ways of understanding SOC 2:❖ SOC 2 is a technical audit process. It is undertaken as a duty for the companies or, let’s say, a must-have for some businesses, to note, implement and abide by the security procedures.❖ SOC 2, developed by the AICPA, American Institute of CPAs, as an integrant of their Service Organization Control reporting platform.SOC 2 manages customer’s data in such a way that it fulfills the following five principles:

1. Security

2. Privacy

3. Processing Integrity

4. Confidentiality

5. Availability

Why should we comply with SOC 2?

SOC 2 is used in those companies that rely on cloud solutions to store customer data.

Any company that uses cloud storage solutions should adhere to SOC 2.

With that lot cleared, let’s move on to why startups need to abide by SOC 2.

Why do startups need SOC 2?

Let’s mold this question. Why do start-ups need SOC 2 compliances at an early stage? Startups do not have much data or, most importantly, enough budget to withstand such exertion.

The thing is, the sooner a company starts complying with SOC 2, the earlier they start benefitting from it.

Some entities require compliances even before you put out your pitch for proposal. They value compliance and confide in it.

These entities are banks or fin-tech, or larger, and more reputed organizations.

If you have SOC 2 compliance, it is easier for you to work with them as partners or make or become their customers.

Practicing the SOC 2 compliance also makes it easier to get in business with varied clients.

Security systems can generally take a long time to be implemented.

This is where the SOC 2 compliance comes in — it serves as a shortcut to the security process.

SOC 2 compliance is quick and avoids any encumbrance.

Why? Because a trusted third-party administration handles the auditing process.

Smaller entities have it easier to get the SOC 2 compliance as communication tends to be more lenient and straightforward with lesser people. It is easier to direct the rules and bring about drastic changes as the employees are not familiar with the procedures yet.

Ultimately, this is a matter of fact! The security practices and procedures that you use are beneficial for your enterprise. However, sometimes the companies forget about the regulations and solely aim at getting certified. With this, they start lacking behind in the information security process.

They need to understand the benefits they derive from the SOC 2 compliance and try to gain as much as possible.

Five Steps to SOC 2 Compliance:

Above discussed were the features of SOC 2 compliance and the reasons that measure up to it.

Now we will analyze the steps to achieving SOC 2 Compliance.

There are five basic steps to attain SOC 2 Compliance as explained below:

1. Accumulate the right knowledge: The first step to attaining SOC 2 Compliance is by gathering adequate information about it. Gather as much knowledge about the procedures and the risks associated with them. Notice and collect information about the selling points and the fixations that your company needs.

2. Assemble your documents: Startups are more tumultuous than established enterprises. Their documents tend to be misplaced or even disregarded during the initial process of the setup. They might find it hard to look for and compile the correct papers in times of need. That is why it is recommended to pile up the documents and certificates beforehand to prevent last-minute chaos.

3. Affix the issues: Find solutions to fix the problems you discovered in step 1 of this process. Ensure that the decisions you took are applicable and fruitful.

4. Act out an eclectic test: Do a test run or a „Dry Run“ to check if the implementations that you made for your problems are coming into use or not. It will help you revise your decisions and call attention to the troubles that are still not fixed.

5. Assimilate about the audit and adjust your expectations: With the intention of effectively implying the audit, you need to apprehend its working and regulations.

What is a PBC List?

The auditors, or as termed the third party, will start the process by sending you a list of things to prepare and consign them back.

This list is called the Prepared by the Client or abbreviated as the PBC list.

They will ask about your company before they even get to the workplace.

It is their way of inquiring about the unfiltered internal structure of your company.

At present, companies are more dependent on cloud storage, which is why it is quite essential to get the SOC 2 Compliance.

Many companies still believe that only well-established enterprises need or benefit from SOC 2 Compliance. In this post, we have studied how much startups get benefit from this information security technique.

In fact, due to more flexibility, it is easier for the newly established startups to confer to SOC 2 Compliance.

Getting your company complied with SOC 2 builds trust and credibility and increases the chances of engagement with the reputed industries.

How Can under-controls Management System Help?

under-controls Management System can help your company comply with or audit its SOC 2. This process can allow you to map your business processes, examine your infrastructure and security practices, and identify and rectify any gaps or vulnerabilities.

So, if your company handles or stores customer data, then SOC 2 framework can surely help you become compliant with industry standards. It can provide your customers with the confidence that you have the necessary processes and practices in place to protect their data.

So, why wait?

Contact under-controls Management System as soon as possible.

We are here to help you move ahead.

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