Have your clients been asking about your SOC report status? While not a formal requirement in many sectors, more businesses are relying on SOC reports for reassurance regarding their partner’s security environment.
A SOC report demonstrates the effectiveness of your security controls, and shows that you take protecting sensitive data seriously.
What is a SOC Report?
A SOC report shows your clients and business partners that your systems are trustworthy and are available to meet their needs. This helps you establish credibility in your industry.
What is a SOC 1 and SOC 2 Report?
The biggest difference between a SOC 1 report and a SOC 2 report is what aspects of your systems the audit focuses on:
- A SOC 1 report focuses on services that are relevant to a company’s financial reporting.
- A SOC 2 report is based on the Five Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. It analyzes the operational risk for third-party services outside of financial reporting.
Did you know that there are also two different types of each SOC report? Learn more here.
When Do You Need a SOC Report?
SOC report adoption is widespread, but the technology, financial, and healthcare sectors are currently seeing particularly large growth. As more companies adapt to cloud technologies or prepare for cybersecurity threats, many are seeing the benefits of ensuring SOC compliance.
SOC reports offer third-party validation of the effectiveness of the operation and design of your organization’s cybersecurity controls. In our ever-evolving, digital landscape, being able to offer demonstrable proof of your organization’s data security measures can help build trust with current and future clients, possibly opening the gateway to further business opportunities.