Understanding SOC2 Compliance: A Step-by-Step Guide to the Requirements
Cyberattacks are escalating in size, frequency, and scope, are rising from 8-9% every year, and over a quarter facing five or more attacks, according to the Hiscox Cyber Readiness Report 2021. While healthcare and financial sectors traditionally lead in cybersecurity due to strict compliance mandates and hefty penalties, the threat landscape now spans all industries. With the shift to SaaS-based models, customers demand secure supply chains, as hackers increasingly target operational systems with disruptive attacks rather than data theft.
If you ask a security expert about compliance, the first thing that comes to mind is that it forms the foundation of everything. Compliance sets the groundwork for building a robust information security management system, which is essential to the core operations of any company.
SOC 2 compliance is an important certification that showcases an Organization’s commitment to Information security, privacy, integrity and trust. Formed exclusively for service providers, SOC 2 compliance assures customers, partners, and regulators that your organization has stringent security controls to protect the data which is shared. Getting compliant with SOC 2 Type 2 involves complex requirements. This blog will break it down for you more easily.
This blog will guide you through:
- What SOC 2 compliance is and why it matters
- The Trust Service Criteria (TSC) framework
- Key compliance steps and challenges
- The role of tools like penetration testing and readiness assessments in achieving SOC
What is SOC 2 Compliance?
SOC 2, or Service Organization Control 2, is a voluntary compliance framework developed by the American Institute of Certified Public Accountants (AICPA). It assesses how service organizations handle sensitive information based on five Trust Service Criteria.
Who Needs SOC 2 Compliance?
SOC 2 is ideal for service organizations that store or process customer data, such as:
SaaS companies - SaaS companies and their services are the future in this modern world, making them responsible for storing and processing huge numbers of customer data, this data includes the PII of the users including their personal, financial and medical information.Examples of SaaS companies include project management tools like Asana or Trello, CRM platforms like Salesforce or HubSpot, and financial tools like QuickBooks Online, by implementing SOC2 compliance these companies are demonstrating the commitment and trust to their customers and at the same time meeting regulatory and contractual requirements.
Cloud service providers - Cloud service providers host infrastructure, platforms, or software for businesses, enabling them to manage operations and data more effectively. These providers handle sensitive information across diverse industries, making robust security essential. Examples include major providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). Achieving SOC 2 compliance assures clients that the provider has implemented stringent controls to protect data, particularly in multi-tenant environments where risks such as data breaches or insider threats are heightened.
Managed service providers (MSPs) - Managed Service Providers (MSPs) offer outsourced IT services, including network monitoring, cybersecurity, data backups, and cloud migrations. By managing these critical business functions, MSPs often access sensitive customer data and systems. Examples include IT support companies, cybersecurity firms, and network administrators. SOC 2 compliance demonstrates that the MSP follows industry best practices to safeguard client environments, assuring businesses of their commitment to maintaining data security and reducing risks. This fosters trust and strengthens long-term client relationships.
SOC 2 Report Types
SOC 2 Type 1: Examines the design of your controls at a specific point in time. SOC 2 Type 2: Evaluates the operating effectiveness of controls over a period, offering greater assurance.
Both reports are essential tools for building trust and streamlining due diligence processes.
Why SOC 2 Compliance is Critical for Your Business
1. Building Trust
SOC 2 compliance brings credibility to your Organization, it gives a signal to your customers and stakeholders that your Organization Prioritize their data security needs ensuring confidentiality, trust and Loyalty.
2. Regulatory Benefits
While SOC2 certification is not a mandatory requirement, it aligns with privacy and security regulations like ISO 27001, GDPR and HIPAA, reducing compliance efforts.
3. Competitive Advantage
Organizations with SOC 2 compliance will have an advantage in the market, attracting customers to give priority on security best practices.
How to Choose the Right Security Compliance Framework for Your Business
Understanding the SOC 2 Trust Service Criteria (TSC)
At the core of SOC 2 are five Trust Service Criteria:
1. Security (Common Criteria)
This mandatory criterion ensures that systems are safeguarded against unauthorized access and breaches by incorporating measures such as logical access controls, endpoint protection, and user awareness training.
2. Availability
Availability emphasizes maintaining operational systems and ensuring recoverability during outages through measures such as disaster recovery planning and capacity management.
3. Processing Integrity
This applies to organizations that process customer data, ensuring the accuracy and validity of operations.
4. Confidentiality
Confidentiality protects sensitive information, such as intellectual property and business secrets, through measures like data encryption and access restrictions.
5. Privacy
Privacy focuses on protecting personal data in accordance with customer expectations and legal requirements.
Key SOC 2 Compliance Requirements
Before starting a formal SOC 2 audit, it’s essential to understand the Trust Services Criteria (TSC)—the foundation for all SOC 2 requirements. Here’s a breakdown of the key areas and what they entail:
1. Information Security
How do you safeguard your data against unauthorized access and misuse? Implement strong encryption, network security measures, and regular vulnerability assessments.
2. Logical and Physical Access Controls
How does your company manage access? Enforce multi-factor authentication, limit access to sensitive systems, and establish stringent onboarding and offboarding protocols.
3. System Operations
How do you ensure smooth operations? Use monitoring tools to detect anomalies and create processes to address deviations effectively.
4. Change Management
How do you handle system changes? Implement a controlled process for updates and modifications, ensuring no unauthorized changes disrupt your systems.
5. Risk Mitigation
How do you manage potential risks? Identify vulnerabilities, assess vendor reliability, and put contingency plans in place for business disruptions.
The Ultimate Guide to Software Penetration Testing for SaaS Companies
Role of Penetration Testing in SOC 2 Compliance
What is Penetration Testing?
Penetration testing, or ethical hacking, is the practice of findings security vulnerabilities and loopholes in your system(web, cloud, network and code) and exploit vulnerabilities before malicious actors can. It’s not just about finding weaknesses—it’s about understanding how an attacker can breach your defenses and can create an impact on your business and customers.
For organizations aiming for SOC 2 compliance, penetration testing becomes essential. It ensures your security measures meet the high standards required for data protection and helps you mitigate risks that could jeopardize your reputation and operations.
How Penetration Testing Supports SOC 2
Penetration testing plays an important role in validating security controls by demonstrating their effectiveness in preventing vulnerabilites in the system. It helps identify potential threats before they can be exploited, providing a proactive approach to mitigating the risk.
Additionally, regular testing provides valuable evidence of your organization’s commitment to security, making it easier to meet audit requirements and ensuring that you’re prepared for scrutiny from auditors. By conducting penetration testing on a regular basis, your organization stays ahead of evolving threats, ensuring ongoing compliance and minimizing the risk from security breaches.
Steps to Achieve SOC 2 Compliance
1. Establish Your Objectives
The cornerstone of SOC 2 compliance is having clear and well-defined objectives. Why does your organization need SOC 2? Is it to satisfy customer demands, enhance your data security practices, or build trust in your brand?
Defining your objectives ensures your SOC 2 compliance efforts align with organizational goals. By doing so, you create a roadmap for implementing effective security controls, making the process streamlined and purposeful.
2. Choose Your Auditor
Selecting the right auditor is critical for your SOC 2 compliance journey. Auditors do more than issue the final report—they guide you through the process.
Key factors for choosing an auditor:
Industry Expertise: Do they understand your business and its unique challenges?
Team Collaboration: Will they effectively work with all stakeholders, including DevOps and privacy teams?
Transparency: Ensure direct conversations with the audit team about timelines, SLAs, and compliance details.
Using tools like OneTrust SOC 2 compliance solutions can simplify the process further with pre-built controls and automation.
3. Identify the Type of SOC 2 Report
There are two SOC 2 report types:
Type 1: Focuses on controls at a specific point in time. Type 2: Evaluates controls over a period (6–12 months), offering deeper assurance. Organizations often opt for Type 2 as it demonstrates higher security standards and meets customer expectations.
4. Define Your Audit Scope
Your audit scope dictates what’s included in the SOC 2 assessment. Start by identifying systems, databases, applications, and physical locations handling customer data.
5. Perform a Gap Assessment
A gap assessment compares your current security practices against SOC 2 requirements. Common gaps include:
- Lack of documented policies
- Inadequate access controls
- Unaddressed vulnerabilities
Use SOC 2 compliance software like OneTrust to automate gap assessments, reduce manual work, and complete this step efficiently.
6. Remediate Gaps and Implement Controls
Addressing identified gaps is the most rigorous phase of SOC 2 compliance. Collaborate with your teams to review policies, implement controls, and document updates. Be thorough—this step ensures you meet the compliance standards outlined by the AICPA.
7. Simulate an Audit (Optional)
Before the official audit, a mock audit can help verify readiness and highlight remaining issues. While optional, this step prepares your organization for the actual process and minimizes surprises.
8. Complete Your SOC 2 Audit
With your scope, controls, and documentation in place, proceed with the audit. For SOC 2 Type 2, expect the process to take weeks to months, including on-site walkthroughs and evidence reviews.
At the end, you’ll receive a SOC 2 report detailing your systems, controls, and the auditor’s findings. An unqualified opinion indicates success—congratulations!
Streamline Your SOC 2 Compliance Process
Achieving SOC 2 compliance doesn’t have to be overwhelming. Using tools like OneTrust SOC 2 solutions can automate workflows, reduce manual effort, and guide you toward successful certification. Start your compliance journey today to build trust, strengthen security, and meet customer expectations.
Optimize your security operations with this step-by-step SOC 2 checklist. Share this guide and prepare your organization for compliance success!
How Uproot Security Can Help with your SOC2 Compliance?
Uproot Security simplifies SOC 2 compliance with:
- Automated Readiness Assessments: Identify gaps and streamline preparation.
- Penetration Testing: Validate your security controls with expert-led pentesting.
- Compliance Tools: Centralize evidence collection and policy management.
- Audit Support: Connect with trusted auditors and simplify the audit process.
Partnering with Uproot Security ensures a smooth and efficient path to SOC 2 certification.
SOC 2 compliance is a powerful tool for demonstrating your commitment to data security and earning customer trust. By understanding the framework, implementing effective controls, and leveraging expert guidance, your organization can navigate the complexities of SOC 2 with confidence.
Frequently asked questions around SOC 2 Compliance
1. How long does it take to achieve SOC 2 compliance?
It typically takes 6-12 months, depending on your organization’s current security posture and readiness.
2. Is SOC 2 compliance mandatory?
SOC 2 is not legally required but is often a contractual obligation for service providers.
3. Can SOC 2 compliance improve sales?
Yes. SOC 2 compliance builds trust, reduces due diligence efforts, and enhances your competitive edge.
4. What is the difference between SOC 2 Type 1 and Type 2?
SOC 2 Type 1 evaluates controls at a single point in time, while Type 2 assesses their effectiveness over a period.
5. Do I need all five Trust Service Criteria?
No. Security is mandatory, but the others (Availability, Confidentiality, Processing Integrity, and Privacy) depend on your operations and customer needs.
Robin
Senior Pentest Consultant