SOC 2 reports classify into three types: Security operation center 1, Security operation center 2, and Security operation center 3. They are not upgrades; instead, they are distinct types of reports. Security operation center 1 focuses on a service provider’s financial reporting. Security operation center2 and Security operation center3 both analyze a vendor’s security and data protection measures.
A Security operation center 2 report is internal and only available to the MSP and the firm that wants to collaborate with it, but a Security operation center3 report is public.
History of SOC
American Institute of CPAs (AICPA) designs SOC2 for third-party cloud service providers. It outsourced SaaS providers who collect, transmit, and, most crucially, keep a client’s data. SOC 2 is an auditing mechanism that assures cloud computing and SaaS providers to safely manage data to protect a company’s interests and its customers’ privacy.
It is more than just a technical evaluation. It also establishes strict requirements that MSPs must follow by the five Trust Service Principles of security, availability, processing, integrity, confidentiality, and privacy.
Fundamental tenets of SOC 2 compliance
Some refer to SOC 2 as a “certification,” although this is a broad definition. A better term would be ‘attestation,’ since when a corporation claims to have good security processes in place. It must have them audited by an independent and external auditor.
The auditor will evaluate the robustness of all such systems and procedures against SOC 2 standards. Later on. ‘attest’ to reviewing them and stating they meet requirements.
Requirements
Security operation center two compliance intends for technology-driven service organizations. It assists in establishing audit controls related to data security, information availability, integrity, and confidentiality.
There are several advantages to adhering to Security operation centre two compliance. It helps to enhanced security posture, excellent IT governance and controls, higher protection against data loss, and guarantees to customers, insurers, and others.
Security operation centre 2 compliance achieve in phases, with the first concentrating on broad. IT controls that influence the following areas:
Security
Data security as it collects, uses, processes, sends, and stores. It also refers to protecting the information processing, transmission, and storage technologies that enable the core organization to fulfill its goals.
Availability
Customers want their cloud services to be available and ready to use at all times. SOC 2 evaluates an MSP’s capacity to sustain operations by looking at processes. It deals with security-related concerns and performance monitoring capabilities, among other things.
Data processing
The processing integrity principle checks if an MSP’s platform works as intended by managing authorized, complete, valid, accurate, and timely data. The behavior of the processing itself is more significant than the integrity of the data. This includes in terms of processing integrity, and its systems must work without any glitches, delays, omissions, or unauthorized or accidental data manipulation.
Confidentiality
The confidentiality principle governs an MSP’s capacity to preserve its clients’ sensitive information throughout the data’s lifespan and until its disposal. It is distinct from privacy because privacy is concerned with personal data. On the other hand, the company needs to control intellectual property, which may include personal information.
Privacy
The MSP’s processing of Personal Identifiable Information (PII) is analyzed using the Security operation centre 2 privacy principle. Which bases on the company’s documented data policies and the AICPA’s Generally Accepted Privacy Principles (GAPP). Proper access constraints, similar to the confidentiality principle, must be in place to protect PII data from unauthorized access. This includes intelligent access control, device certification, and user verification.
Third-party services risks
According to the Ponemon Institute, an independent research organization in the United States. 53% of organizations questioned have had one or more data breaches committed by a third party, costing an average of $7.5 million to repair. Although third-party SaaS service providers are increasingly required, their information security may jeopardize. In case, If the proper controls are not in place.
Data Privacy Legislation
Customer data security cannot be secure by relying on data privacy legislation such as the GDPR or selecting MSPs who employ trustworthy cloud service providers. You would know if they still don’t have the necessary system control measures if they haven’t audits.
Being involved in a third-party data hack might have long-term consequences. These instances, which usually involve third parties, may be more challenging to detect, exposing firms for longer. According to IBM’s 2020 Cost of a Data Breach Report, each data breach costs an average of $3.86 million. Which helps to cover detection, lost income, notification, and response.
Cloud Data
The storage and processing of corporate and personal data in the cloud are increasing exponentially. The expanding number of organizations that utilize the cloud as a repository require resilient, secure, and always-on functionality from all of their virtual services. As privacy and data handling requirements become more stringent worldwide. It pays for businesses to collaborate with MSPs, third-party service providers, and SaaS platform suppliers. Providers can demonstrate and verify that their solutions are robust and surpass governance criteria.
