SOC 2 Framework: Your Key To Achieving Cybersecurity Excellence

According to Infosecurity, in the 3rd quarter of 2022 alone, a total of 108.9 million accounts were breached, a 70% increase compared to the previous quarter. 

SOC2 framework provides a set of auditing standards and guidelines to assess an organization’s information security practices and procedures and determine whether they align with industry best practices and regulatory requirements. 

In this guide, we’ll deep dive into everything you need to know about the SOC2 framework, its importance, implementing the SOC for cybersecurity, and how to use Sprinto for efficient compliance management. 

What is the SOC 2 framework?

SOC 2 framework was first coined by the American Institute of Certified Public Accountants (AICPA) to provide assurance about a service provider’s cybersecurity controls. It is also known as the SOC 2 framework AICPA. 

SOC 2 framework is a voluntary compliance standard developed by the American Institute of Public Accountants (AICPA) to protect sensitive customer data collected and processed by service organizations. The AICPA evaluates the internal controls of these organizations against 5 Trust Service criteria—Security, Availability, Confidentiality, Processing Integrity, and Privacy, aimed at ensuring a firm commitment to information security.

Importance of SOC 2 framework for organizations

SOC 2 security framework is important for organizations to enhance vendor relationships by ensuring that their data is safe. It helps build market credibility and protects the organization from attack vectors by maintaining robust controls.

The benefits of implementing the SOC 2 security framework are: 

Ensures Data Security

SOC 2 provides a detailed and proven framework for verifying an organization’s security controls and practices against the industry’s best standards. It evaluates a wide range of controls such as access management, data encryption, secure software development, change management, etc. and ensures that data is secure from unauthorized access, alteration, or destruction.

Enhances Customer Trust

SOC 2 certification holds a high degree of credibility in the industry as it sets the yardstick of quality quite high. Having SOC 2 certification can increase the trust and confidence of all the relevant stakeholders and regulators in an organization’s security and privacy practices and help you win better business deals.

Compliance Adherence

Complex and constantly upgrading regulations are the biggest nightmares for organizations. SOC 2 compliance framework becomes the savior here by being already compliant with the EU’s General Data Protection Regulation (GDPR) , the California Consumer Privacy Act (CCPA),  ISO 27001, HIPAA, and many more. Indeed, SOC 2 sets the gold standards for compliance. 

Risk management

The SOC 2 framework AICPA helps organizations identify and mitigate potential security and privacy risks and improve their holistic security outlook. 

Continuous improvement

It encourages organizations to gun for consistent improvement and upgradation of security and privacy practices to keep pace with the requirements and industry standards.

Sprinto can help you achieve SOC 2 compliance with 1:1 guided implementation and adaptive automation. Our clients get to the audit stage in weeks and not months and stay ever-compliant.

Also check out this video for a detailed SOC 2 Checklist

Comprehensive Overview of the SOC 2 Framework

SOC 2 framework comprises 5 trust principles – security, availability, processing integrity, confidentiality, and privacy. Each of these criteria focuses on a distinct area that your information security program should support.

Each element describes a set of compliance objectives that your organization must meet with its specific controls to abide by the SOC 2 framework.

Must Check: Why SOC 2 for SaaS Companies is the Need of the Hour

Security

The security principle is the foundation of the SOC 2 compliance framework and requires organizations to implement effective controls to protect their systems and data from unauthorized access, use, disclosure, alteration, or destruction. The security principle covers wide-ranging security-related areas including access controls, network security, data encryption, and incident response.

Access controls

Access controls are put in place to ensure that only legitimized users can access systems and data to perform the required actions. This comprises implementing role-based access controls, multi-factor authentication, and periodic password changes. Access controls are also equally useful to track and audit user activity and detect potential security incidents.

Network security

Being one of the most paramount factors, network security plays a key role in the SOC2 framework. It has become impertinent for organizations to protect their networks from unauthorized access, attacks, and data theft by implementing firewalls, intrusion detection systems, and network segmentation to prevent security breaches.

Data encryption

A report on Global Encryption Trends found that on one hand, the majority of the survey participants (enterprise companies) listed customer data as the top encryption priority. However, only 42% of respondents used data encryption to secure customer data in 2021. 

Organizations would have to exercise a great deal of caution to encrypt sensitive data both at rest and in transit, so they can protect it from unauthorized access and theft.

A good example of data encryption measures would be implementing encryption algorithms such as Advanced Encryption Standard (AES) to foolproof sensitive information.

Incident response

Unforeseen incidents can wreck an organization completely. Having a  plan in place to respond swiftly to security incidents and minimize the damage caused if any, can save the organization millions of dollars from any such adverse incident. It comprises of:

• Regular mock drills and testing, 
• Well-defined incident response plan, and
• Having the right tools and processes to detect and respond to security incidents and breaches. 

Availability

The availability principle of the SOC 2 framework requires organizations to make sure that their systems and data are available for authorized users whenever needed.

In this fast-paced world, unavailability issues of service disruptions, data loss, and low system performance can undo the years of hard work put in by the organization. Disaster recovery and business continuity plans can minimize the impact of outages and ensure availability in any situation.

Disaster recovery

Disaster recovery plans are essential for ensuring the availability of systems and data in the event of a mishap or natural calamity. Identify the critical systems and data to be recovered in the event of a disaster, conduct regular disaster recovery drills, and develop a plan to recover them. 

Business continuity

Business continuity in the SOC 2 framework involves identifying alternative sources of data and systems and developing procedures for using them in the event of an outage.

Processing integrity

Processing integrity is a key principle in the SOC 2 framework that requires organizations to ensure that their systems accurately process and maintain data in accordance with the stated processing procedures of the SOC 2 framework.

Having controls in place maintains accurate data processing and integrity. Implementing data validation and data reconciliation procedures and conducting regular data quality assessments leads to process integrity. 

Good Read: SOC 2 Compliance Cost: Planning A Comprehensive Compliance Budget

Data validation and data reconciliation procedures

To validate the accuracy of data entered in the systems, consider: 

• Incorporating data validation rules, 
• Performing data quality checks, and 
• reconciling data with external sources of data like spreadsheets

Data quality assessments

The data quality assessments involve: 

• Conducting data audits, 
• Evaluating data completeness and accuracy, 
• Carrying out data profiling and data trend analysis. 

Confidentiality

As per the confidentiality principle of the SOC 2 framework AICPA, organizations must have rules and processes in place such as implementing data access controls, data encryption, and data classification policies to entrust that confidential information is not disclosed to unauthorized parties.

Data access controls

The data access controls for protecting the confidentiality of data cover: 

• Implementing role-based access controls, 
• Multi-factor authentication, and 
• Data encryption.

Data encryptions

Encryption measures include implementing encryption algorithms such as Advanced Encryption Standard (AES) and secure key management practices to ensure the security of the encrypted data as per SOC 2 framework AICPA.

Data classification

Organizations must classify their data based on its sensitivity and implement controls that are appropriate for the level of sensitivity and involves: 

• Implementing data retention policies, 
• Data backup and disaster recovery procedures, and 
• Data destruction policies.

Privacy

The privacy principle requires organizations to collect, use, and disclose personal information in accordance with their privacy policy and applicable laws and regulations.

So why should organizations implement SOC 2 controls? Simply put, to protect the privacy of personal information by performing regular risk assessments and conducting privacy impact assessments.

Regular risk assessments

A critical part of the SOC 2 framework, regular risk assessments protect the privacy of personal information. Organizations need to assess constantly the risks associated with their privacy practices and identify areas of improvement to avoid any unforeseen incident. 

Privacy impact assessments

The SOC 2 framework AICPA requires organizations to conduct privacy impact assessments at regular intervals to identify any potential threat or loopholes.

SOC 2 report Types, audits, and certification

SOC 2 audits result in two types of reports: SOC 2 Type 1 and SOC 2 Type 2

• SOC 2 Type 1 evaluates the design and implementation of internal controls at a specific point in time. It takes about 1-3 months to receive a SOC 2 type 1 report.
• SOC 2 Type 2 evaluates the operating effectiveness of internal controls over a period of time which is usually 3-12 months. It can take an organization 6-12 months to receive a SOC 2 Type 2 report.

It is important to note that the SOC 2 certification is an attested report issued by a third-party auditor after a rigorous examination of controls. There is no such thing as a formal SOC 2 certification and the report is your proof of compliance.

Spinto can help you map and monitor all 5 Trust Service Criteria and get you to the certification stage quickly. The automated workflows, in-built policy templates, training modules, automated evidence collection and more make it easy to manage the SOC 2 compliance program and gets you audit ready in weeks instead of months.Read how Dassana got SOC 2 ready in just 2 weeks!

How does the SOC 2 framework relate to cybersecurity and data privacy?

In the simplest terms, compliance with the SOC 2 framework allows service organizations to improve their information security and cybersecurity practices. It helps them maintain the security, availability, processing integrity, privacy, and confidentiality of customer data by implementing airtight controls. This helps them prevent any unathorized access, data theft, disclosure or destruction and maintain the highest standards of information security.

Furthermore, by following the SOC 2 compliance guidelines, organizations can defend themselves better against cyber attacks and prevent security breaches. This is achieved through comprehensive risk assessments and reporting, proactive mitigation in case of security and compliance misses, continuous monitoring mechanisms and mandatory training programs to ensure well-informed employees.

How does an organization demonstrate ongoing compliance with the SOC 2 framework?

To demonstrate ongoing compliance with the SOC 2 framework, an organization must implement and maintain recurring controls that satisfy the chosen Trust service criteria. These controls must be continuously monitored for effectiveness and assessed by an external auditor when the organization is ready.

Here are 5 steps to demonstrate ongoing compliance with SOC 2 framework:

Determining the scope and objectives of the SOC 2 audit

The first part of preparing for the SOC 2 framework audit is to define the scope and objectives. SOC 2 audit reports take into consideration infrastructure, data, people, risk management policies, and SOC tools, to name a few. You must determine who and what should be the subject of the audit within each of these categories.

Additionally, choosing your scope involves deciding between SOC 2 Type 1 and Type 2 reports. If you’re more concerned with well-designed controls and want to save resources, go ahead with Type 1.

Choose Type 2 if you are more concerned about how well your controls will perform in the real world. Additionally, clients often prefer Type 2 reports due to their more stringent severity.

Select your trusted service criteria

The SOC 2 audits evaluate your controls against the 5 trust services criteria as defined in the SOC 2 compliance requirements: 

• Security: You must protect information and systems from unauthorized access or any misuse of data.

• Availability: Your systems and data need to be available whenever needed.

• Processing integrity: Your systems must perform the functions accurately to achieve your organization’s objectives.

• Confidentiality: Take utmost precautions while handling non-personally identifiable information and data.

• Privacy: Ensure that sensitive information like the individuals’ personally identifiable information (PII) information is secure. 

Conduct an initial readiness assessment

A readiness assessment is like a hands-on version of the actual SOC 2 framework audit. You can do it yourself if you know how, but hiring an auditor is usually the best option to get a neutral point of view.

The CFA or auditor checks all of the systems, processes, and controls, records all the key processes, and finally issues a management letter detailing the weaknesses or deficiencies found along with recommendations.

The initial SOC 2 readiness assessment will help you identify areas that need improvement and give you an idea of the entire audit.

Conduct a gap analysis and close each gap

You should conduct a thorough gap analysis to assess your present position and then fix any issues to match the SOC 2 compliance standards before the actual audit.

The gap analysis and the correction can take a few months. Some activities you may identify as necessary in your gap analysis include:

• Implement controls
• Interviewing employees
• Training employees on Controls
• Create and update controls documentation
• Modify workflows

As with the readiness assessment, you can even outsource your gap analysis to another firm that specializes in the SOC 2 audit process. It might be expensive, but can save you time and provide you with expert assistance.

Conduct a final readiness assessment

After closing the gaps between your organization’s present state and SOC 2 compliance, consider conducting a final readiness assessment to identify vulnerabilities and fix them.

Opt for a formal SOC 2 assessment after addressing all issues in the criteria of your trust services. 

How Sprinto simplifies SOC 2 framework management?

Sprinto can make your SOC 2 compliance process easier, smoother, and faster. Sprinto is security compliance operational software that helps organizations implement, maintain, and scale various security and privacy programs including the SOC 2 framework. 

Use Sprinto to map risk to SOC 2 controls and run fully automated checks to ensure ongoing compliance and speed up your SOC 2 audit.

Sprinto comes with descriptive controls mapped to the five service trust principles that you can customize to suit your specific environment. 

Here’s how Sprinto automates your compliance journey for SOC 2 framework AICPA. 

• A logical approach to compliance: Sprinto’s approach goes from people, policies, infrastructure, code repos, incident management, and access control to documentation so that you don’t miss any security measures. 
• Editable security policies: An editable template of 20+ security policies ensure that you don’t get lost in piles of data and processes. 
• Easy evidence collection: Save hundreds of hours of SOC 2 audit preparation time with automated evidence collection and cataloging. 
• Scalable compliance management platform: Sprinto for SOC 2 compliance can adapt and scale with your organization, be it adding new entities, applications, or frameworks. 
• Entry-level mapping of controls: Automated control mapping allows you to map production and non-production assets and define security criteria for each asset. 

To know more about how Sprinto automates your SOC 2 compliance, book a personalized demo with our compliance experts. 

FAQs

Is SOC 2 a cybersecurity framework?

SOC 2 is a cybersecurity framework for organizations that handle sensitive customer data. SOC 2 is an internationally recognized security audit that provides customers and interested parties with assurance that an organization’s information security practices meet a specified set of criteria.

Is SOC 2 a governance framework?

SOC 2 is not a completely dedicated governance framework, though it includes governance elements in its standards. It is primarily a cybersecurity and privacy framework that provides guidelines and criteria for organizations that handle sensitive customer information.

What is SOC 2 Type 2 framework?

A SOC 2 Type 2 framework evaluates the effectiveness of an organization’s internal controls against the 5 Trust Service Criteria over a period of time ( usually 3-12 months).