SOC2 Certification

What Is a SOC2 Certification and Why Is It Important?

A SOC2 certification is a critical security accreditation that validates a company’s systems and processes meet the highest standards for data privacy, confidentiality, and system resilience. When you trust a company to handle your data, you should make sure they have a SOC2 certification. This means that they not only take data security seriously but also they meet rigorous compliance standards to receive the certification. In this digital era of hacking and data leaks, a SOC2 certification is essential for any company you may store valuable data with.

What Is a SOC2 Certification?

First, SOC2 is an acronym for Systems and Organization Controls 2. SOC2 is a set of guidelines created in 2010 by the American Institute of CPAs (AICPA). The framework helps auditors assess a company’s security protocol for customer data stored in the cloud. For a company to obtain a SOC2 certification, an outside auditor comes to their business, analyzes the systems and processes, then writes a SOC2 report. If they conclude that the company is SOC2 compliant, they receive a SOC2 certification.

What Are the SOC2 Certification Guidelines?

The SOC2 audit covers one or all of the following Trust Services Criteria (TSC) set by the AICPA:

  1. Security (included in every audit)
  2. Availability
  3. Processing Integrity
  4. Confidentiality
  5. Privacy

SOC2 compliance is primarily about security, which is why that is included in every audit. However, the other four criteria can be considered as well if it applies to the practices of the individual business. Every organization will be unique in its offerings and what data it collects and stores for customers, so the audits are custom to the business.

Security

Safeguarding customer data in the cloud is all about protecting the data from outside access. Companies can use firewalls, multi-factor authentication, encryption, and intrusion detection as SOC2 compliant security measures. This reduces the risk of a data breach, including theft, misuse, or disclosure of customer data.

Availability

The second TSC covers data accessibility and handling, which is for companies that offer a cloud-based service or software. Basically, the SOC2 guideline sets the standard for the minimum level of performance that is required at all times. This ensures that customers can always access their data when they need it. Best practices for SOC2 compliance include performance monitoring, backup servers, and disaster or incident recovery plans.

Processing Integrity

This TSC ensures that the system or software processes data safely, accurately, and in a timely manner. Quality assurance and process monitoring measures are essential to make sure that data is going to the right place at the right time. Furthermore, this isn’t just about data security. The processing integrity of a system can make or break the customer experience. A company with a SOC2 certification is far more likely to deliver a positive customer experience.

Confidentiality

The confidentiality TSC is similar to security in that encryption and firewalls are key. However, confidentiality shifts the focus of data protection to internal access. This means there are measures in place to prevent unauthorized parties from using or accessing data throughout the stages of transfer, storage, and customer access.

Privacy

The final TSC covers the collection, use, retention, disclosure, and disposal of personal information. To be SOC2 compliant, a company must have more than just a privacy policy. In fact, the SOC2 guidelines include all of the processes, legal documents, and procedures for every stage this personally identifiable information passes through. Again, this TSC uses similar practices to the others including access control, multi-factor authentication, and encryption.

Why is SOC2 Compliance Important?

Even massive global corporations are not immune to the issues of data security. Yahoo, LinkedIn, Facebook, T-Mobile, Marriott, Twitter, and Experian are just a few on the long list of data breaches in recent years. Furthermore, the 2021 Data Breach Report by the Identity Theft Resource Center found that 2021 set a new record with 1,862 data breaches, a 68% increase from 2020. So, to protect your own data, it’s important to choose companies that have a SOC2 certification. Considering that a single breach can leak private information and result in issues from identity theft to fraudulent charges, data security has to be a top priority for you and the organizations you trust with your data.

Redlist’s Commitment to SOC2 Compliance

We want Redlist users to know their data is safe with us. Everyone on our team is committed to data security, and our SOC2 certification is the gold standard for security compliance. From our policies to the daily workflows that your data processes through, we maintain best-in-class systems and processes to protect our customers. If you’re considering any company that will handle your data, whether it is software for your business or choosing an email provider, include SOC2 compliance on your due diligence list before you make a decision.

Share this post

Continue Reading

Schedule a Demo

Start managing everything in one system

4.7 Star Rating
5/5
Have ideas or feedback?
Submit Feedback