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Service Organization Control Type 2

Companies are facing a growing threat Environment, making information and data security a top priority. A data breach can cost millions, not to mention the reputational damage and loss of customer trust. Cybersecurity requires defining frameworks – guiding principles and best practices that companies must follow to ensure information security. SOC 2, or Service Organization Control Type 2, is a cybersecurity framework developed by the American Institute of Certified Public Accountants (AICPA). Its main purpose is to ensure that service providers store and process customer data in a secure manner.

While standards such as ISO/IEC 27001 and PCI DSS have strict requirements regarding cybersecurity controls, SOC 2 does not. Each company designs and adopts its own controls depending on its operating models. An independent auditor is then appointed to verify that the company's controls meet the requirements of SOC 2. After the audit, the auditor writes a report on how well the company's systems and processes meet SOC 2.

SOC 2 defines the requirements for the management and storage of customer data based on five criteria for trustworthiness of services (Trust Service Criteria, TSC):

Security. Generally speaking, the principle of security requires the protection of data and systems against unauthorized access. This may require implementing some form of access control, implementing firewalls with strict rules for inbound and outbound traffic, implementing intrusion detection and recovery systems, and using multi-factor authentication.

Confidentiality. Data is considered confidential if only a certain group of people have access to it. This may include application code, usernames and passwords, bank card information or business plans, etc. To comply with this principle, confidential data must be encrypted, both at rest and in transit, following the principle of least privilege, i.e. providing the minimum rights people need to do their jobs.

Availability. This requires building systems that ensure the availability of services at all times, resistant to errors and high traffic. This principle requires organizations to use network monitoring systems and create and use disaster recovery plans.

Confidentiality. The collection, storage, processing and disclosure of any personally identifiable information (PII) must adhere to the organization's data use and Privacy policy, along with the terms set forth by the AICPA in the Generally Accepted Privacy Principles (GAPP). The organization must enforce strict controls to protect PII from unauthorized access.

Processing integrity. All systems must always function as intended, without delays, vulnerabilities, errors or bugs. Quality assurance and performance monitoring applications and procedures are critical to achieving adherence to this principle.

To satisfy the five principles of TSC, you must answer the following questions regarding:

Information security: how is data protected from unauthorized access and use?
Logical and physical access control: how is logical and physical access managed and restricted to prevent unauthorized use?
System operations: what are and how are the systems for detecting and mitigating process deviations managed?
Change Management: How do you implement a controlled change management process and prevent unauthorized changes?
Risk Mitigation: How is the risk of business and service disruption identified and mitigated?

Types of SOC 2 reports

SOC 2 reports are of two types:

SOC 2 Type I assesses the company's controls at a specific point in time. They answer the question: Are the security controls properly designed?
SOC 2 Type II evaluates how these controls function over a period of time, typically 3 to 12 months. They answer the question: Are the security controls a company has in place functioning as intended?

To choose between the two, consider your goals, costs, and any constraints, such as time.

SOC 2 Audit Results
Every organization that has passed a SOC 2 audit receives a report, regardless of the conclusions of the audit. Here are the terms auditors use to describe audit results:

Unqualified Opinion: the organisation has passed the audit without reservations and restrictions. It means the controls the auditor tested were designed and operating exactly as they should be
Qualified Opinion: the organisation passes the audit, but some areas require attention. During the audit period, either one or more controls included in the assessment were not adequately designed or implemented.
Disclaimer Opinion: the organisation didn’t provide the auditor with enough information, and they were unable to form an opinion on whether you were SOC 2 compliant.
Adverse Opinion: the organisation failed one or more of the compliance standards. Considered the lowest opinion in a SOC 2 report, adverse opinions tell customers they shouldn’t place trust in an organization’s systems

Who needs a SOC 2 report?
If you are a service organization that stores, processes or transmits any kind of customer data, you will likely need to be SOC 2 compliant because:

SOC 2 requirements help your company establish internal security controls – a foundation of security policies and processes that can help your business expand securely.
you build trust with your customers.

Often service organizations need a SOC 2 report because their customers require it. Customers need to know that their sensitive data is safe. The SOC 2 report can also be the key to expanding sales and moving into a larger market. He:

signals to customers the level of complexity in your organization;
demonstrate your commitment to security;
provides a powerful competitive advantage.

Simply put, a SOC 2 audit is important for two reasons. First, obtaining a SOC 2 report helps your business maintain best-in-class security standards. And second, it can unlock significant growth opportunities.

Service Organization Control Type 2

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Implementation of management standards

CONSEJO EOOD is a consulting company formed by a team of consultants with over 15 years of experience in management systems in the field of international standards. The focus of the company is the provision of consulting services in the development and implementation of management systems that meet the requirements of international standards for quality, the environment, safe working conditions, information security, good production practices based on international standards: ISO 9001, ISO 14001, ISO 45001, ISO 22000, ISO 27001, IFS Food, HACCP and others.

The CONSEHO team has participated in the realization of projects in all branches of the economy. The projects implemented by the CONSEHO team are over 1000, in the fields of production and design, construction, trade, information and communication technologies, transport and forwarding, hotel and restaurant industry, special production, energy, design, food industry, services, etc. The company has established a strict procedure for monitoring the compliance with the agreed requirements with the clients, both the terms of the contracts and the quality of service performance. The established working style of the company consists of developing real management systems together with our customers, on the basis of conducting multiple trainings and providing full assistance in the implementation process. Through its approach to work, CONSECO ensures and guarantees trouble-free certification of the built systems in extremely short terms.

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