If you’re a SaaS company, SOC 2 compliance is important. It helps you build trust with customers, partners, and investors alike.
When it comes to building customer trust in your business model, nothing can help as much as having a strong sense of professionalism and awareness. Hackers are out there waiting for any opportunity to infiltrate someone else’s system (or even just access information). If someone gets in through an insecure connection or weak password protection, everything could be wiped clean out from under them! So, ensuring everything is locked down properly is crucial, not only for your business but for your customers.
The SOC 2 framework is a great way to build customer trust and improve your security posture. It’s an excellent way to reduce risk, as it helps you understand how your business operates, its vulnerabilities, and how best to address them. This can also help you develop a more holistic approach toward protecting your company from cyberattacks by identifying all threats before they become serious problems.
Read on to learn what is SOC 2 compliance and how you can use it to build customer trust in your SaaS.
What is the SOC 2?
SOC 2 is an independent third-party certification that helps companies build trust with customers. It’s a process that proves you are doing the right things in your business, which helps ensure customer satisfaction and loyalty.
The SOC 2 framework includes five core areas: risk management, information security, compliance, privacy and data protection (DP), incident response planning (IRP), and change management.
Why is SOC 2 important for SaaS companies?
The SOC 2 compliance requirements are in place to ensure that your company is trustworthy and secure. Customers want to know that their data is safe, secure, and confidential. This can be done through a variety of means, including:
- Requiring two-factor authentication (2FA) for all users who access sensitive data such as payment information or usernames/passwords
- Implementing employee training on how they should handle personal information; this includes what constitutes confidential information and how to make sure that it stays private
- Providing reports showing how often sensitive information was accessed by employees and when it was accessed.
SOC 2 Trust Service Principles and how they impact SaaS companies
The SOC 2 Trust Service Principles are a framework for security, availability, processing integrity, privacy, and compliance. They are an integral part of the SaaS ecosystem and impact every interaction you have with your customers.
The SOC 2 Type 2 certification shows that your company is following the Trust Service Principles by implementing processes that meet industry standards. Examples include:
- Data protection policies and procedures;
- SOC control list;
- Due diligence process when considering acquisition or partnership opportunities;
- Compliance with laws governing data handling (e.g., GDPR).
How should SaaS companies prepare for SOC 2?
The SOC 2 framework is a set of guidelines for auditors to follow when conducting the SOC 2 audit. It’s not a certification, and it’s not a legal requirement, but it can be used as an indicator that your company is doing everything right in terms of building trust with its customers and suppliers.
The first step to implementing the SOC2 framework is deciding how you want to engage with auditors on this topic. If you want them to come in regularly so they can get familiar with your practices, then make sure they know when they are welcome at your office.
If you are a company that’s still new to the world of tech, you should keep a few things in mind:
- Make sure your team understands how important this is and why
- Have someone available to answer questions at any time (email or phone)
- Get accustomed to the auditing process, so it becomes part of your daily routine.
The SOC 2 Type2 Audit is a great way to build trust with customers and improve your security posture. The process takes months, but it can also be very time-consuming and expensive if you don’t have the right tools. To approach this the right way, a SOC 2 compliance checklist or a SOC 2 questionnaire might come in handy.
SOC 2 Type 2 Audit automation software can provide you with expert guidance on live sessions as well as automated evidence collection without the setbacks that come along with manual monitoring.
SOC 2 is one of the top certifications that you must learn and adopt to strengthen the customers’ trust in your SaaS company. Having the SOC 2 certification will take your company to the next level. It shows your clients that your procedures and processes meet these high standards. The SOC 2 is a great way to build trust with customers and ensure you meet your compliance requirements. With the information you read in this article, you will be able to complete your SOC 2 audit successfully.