All organizations are concerned about information security, even those that outsource key business operations to Market Service Providers (MSPs). SOC 2 is an auditing procedure that demonstrates your MSPs commitment to the security and privacy of your clients.
EasyIT, my MSP in Columbus, OH is proud to share that we are a SOC 2 compliant IT firm in Columbus.
What is SOC 2?
The AICPA developed SOC 2 and designed it for service providers that store their clients’ data in the cloud. It involves establishing and following controls and security policies that encompass the availability, security, processing, integrity, and confidentiality of your customer’s data.
Your MSPs SOC 2 policies are guided by five trust principles that describe how you handle sensitive client data.
The Five Trust Principles are:
- Availability: It addresses the availability of your system and data as agreed by you and your clients.
- Security: It refers to the protection of your system and data from unauthorized physical and logical access.
- Processing integrity: It addresses if the processing of data is timely, accurate, valid, and authorized.
- Confidentiality: It refers to the restricted access and disclosure of confidential data and details the few people that have access to it.
- Privacy: It entails how user information is collected, used, retained, disclosed, and disposed of per your policy.
There are Two Types of SOC 2 Reports:
- SOC 2 Type 1 describes the systems and controls that are in place. Auditors check the policies against the trust principles and determine whether you meet the criteria.
- SOC 2 Type 2 is usually after some time at least six months from the first audit. The report assesses whether your controls have been effective in providing the required levels of data security and management.
What Are the Benefits of Msps Being SOC 2 Compliant?
- You Get a Competitive Advantage: Having a SOC 2 report gives your MSP a competitive advantage over other service providers that do not have one. Ensuring that you have gone through a quality audit also puts you above the others that have an average audit,
- You’ll Be Able to Save on Cost: MSPs are always looking for cost-effective methods. Carrying out an audit may seem expensive, but in the long run, it is a cheaper alternative. If you are compliant, you may avoid any lawsuits that may arise from data breaches, thus saving you money in legal fees. You also avoid any fines that may arise from breaches.
- You’ll Be Able to Attract More Clients: SOC 2 Compliance guarantees you an increase in customer demand. Clients seek options that ensure their data protection from unauthorized access. A compliant MSP has a higher reputation and draws clients its way.
- It Offers You Peace of Mind: You gain confidence that you have suitable and securely designed systems and no longer worry about constant breaches.
- It Helps With Your Risk Management: The audit enables you to develop security policies that help you analyze and handle risks. Having a set guideline ensures you can identify and manage an unforeseen risk promptly.
- You’ll Get Your Documentation Ready: As you carry out your audits, you also benefit from getting documentation for your organization. Having ready documentation will help you meet legal and compliance challenges. It also prepares you for any financial changes such as mergers and acquisitions.
- Carrying Out a SOC 2 Audit Will Help You Foster a Good Company Culture: Implementing these initial security measures may at first be tedious for everyone. Eventually, all your organization’s personnel get used to it and scaling in the future will be an easy process.
- Your Firm’s Overall Security of Your MSP Will Improve: The audit will enable you to mitigate risks better. You will be able to win new business by better answering risk questionnaires. It also helps with your organization’s overall compliance efforts from other regulatory bodies.