SOC 2 Compliance 101

SOC 2 compliance is no longer optional—it’s essential to a robust cybersecurity posture and cyber risk management strategy. It’s a key indicator of an organization’s commitment to securing data and maintaining operational resilience. In this blog, we’ll offer insights and recommendations to help your organization stay ahead as part of your overarching cybersecurity compliance strategy.

SOC 2 Compliance: What Is It and Why Does It Matter

SOC 2 (short for System and Organization Controls) is a framework developed by the American Institute of Certified Public Accountants (AICPA) to assess how organizations manage customer data based on five trust service principles: security, availability, processing integrity, confidentiality, and privacy.

For businesses engaged in third-party risk management, SOC 2 compliance acts as a baseline for evaluating vendor security practices. A vendor’s SOC 2 report provides a clear window into their security controls, helping you identify potential risks before they impact your business.

Many third-party breaches occur due to weak vendor controls—making it imperative to assess not just whether a vendor is compliant but how their compliance aligns with your organization’s risk tolerance.

Exposure management also plays a crucial role here. SOC compliance can guide organizations in identifying and mitigating risks and gaps across their extended attack surfaces.

SOC 2 Compliance Requirements: Breaking Down the Essentials

To achieve SOC 2 compliance, organizations must demonstrate adherence to the trust service principles through robust controls. Five key requirements include:

• Security: Implementing measures like firewalls, intrusion detection systems, and encryption to protect against unauthorized access and data exposure.
• Availability: Ensuring systems are operational and resilient, with disaster recovery plans in place to maintain operations.
• Processing Integrity: Ensuring system processing is complete, valid, accurate, timely, and authorized.
• Confidentiality: Protecting sensitive information through strict access controls and data handling policies.
• Privacy: Managing customer data in line with privacy regulations and transparency requirements, ensuring personal information is collected and used in line with the organization's privacy policy.

Types of SOC Reports and Standards

It’s common to get confused between ​​terms like SOC 1, SOC 2, or Type 1, Type 2.

There are three SOC audit standards:

SOC 1

SOC 1 evaluates controls relevant to a service organization's client financial reporting. These reports are essential for entities that impact their clients' financial statements, ensuring that financial data is handled appropriately.

SOC 2

SOC 2 evaluates controls related to security, availability, processing integrity, confidentiality, and privacy. They are vital for service organizations that manage customer data, providing assurance that information is protected and systems are reliable.

SOC 3

SOC 3 offers a high-level overview of the same information found in SOC 2 but is intended for a general audience. It provides assurance without the detailed testing and results, making it suitable for broad distribution, such as a seal of compliance on a company's website.

Type 1 vs. Type 2 Reports

In turn, each of the standards above can have a different type of report:

• Type 1: Evaluates the design of controls at a specific point in time.
• Type 2: Assesses the operational effectiveness of controls over a period, typically ranging from six to twelve months.

Type 1 reports are a practical choice for demonstrating compliance quickly. However, Type 2 reports are more comprehensive and provide greater assurance, as they demonstrate the operational effectiveness of your security controls over time.

SOC 2 Compliance Checklist

The path to SOC 2 compliance starts with a pre-assessment to gain a clear picture of the organization’s current security posture. Then moves on to strategic planning—from developing robust policies and implementing effective controls, to prioritizing educational training. Each step contributes toward building a resilient and future-proof security framework.

Whether you’re pursuing compliance for your organization or evaluating vendors, this checklist can guide your journey:

1. Understand the Trust Service Criteria

Identify which systems, processes, and data are subject to SOC 2 evaluation. Assemble the resources needed to achieve compliance—human, technological, and financial.

2. Conduct a Gap Analysis

Assess your current controls and processes to identify gaps in meeting SOC 2 requirements. This readiness assessment will help prioritize areas needing immediate attention.

3. Develop and Implement Policies

Establish robust policies and procedures that address identified gaps, ensuring they align with SOC 2 requirements. Focus on access controls, network security controls, incident response, change management, and data handling protocols. Keep documentation updated as risks and regulatory frameworks evolve.

You will need to build a cross-functional team and engage executive support so that the entire organization shares the goal of securing your data management practices.

4. Strengthen Third-Party Risk Management

Evaluate the SOC compliance of your vendors, especially technology service providers or SaaS companies that store, process, or handle customer data. Require SOC 2 reports as part of your vendor risk assessments and incorporate contractual clauses for maintaining compliance and reporting security incidents.

5. Implement Continuous Monitoring

Use continuous monitoring tools to track your compliance posture in real time and identify any deviations from established security policies. This will ensure that controls remain effective and vulnerabilities are addressed promptly.

6. Engage an Experienced Auditor

AICPA specifies that only a licensed, independent Certified Public Accountant (CPA) or certified professionals from AICPA-licensed firms are authorized to perform SOC 2 audits. Select a qualified firm to conduct your SOC 2 audit, and work with them to ensure all necessary evidence and documentation are prepared for a successful assessment.

Beyond the audit, work on remediating gaps and make it a habit to systematically collect and organize the evidence needed to validate your compliance efforts—so that your organization remains committed and consistent. This includes maintaining change logs and audit trails.

7. Foster a Security-First Culture

Train employees on cybersecurity best practices and the importance of compliance. A well-informed team is key to maintaining long-term compliance and mitigating risks, working as a frontline defense of your organization.

Recommendations for CISOs and Cybersecurity Leaders

SOC 2 compliance isn’t just a certificate—it’s a strategic tool for managing cyber risks and building trust with stakeholders. To make the most of it:

• Integrate Compliance into Vendor Risk Assessments: Ensure SOC compliance is a key factor in selecting and evaluating vendors. SOC 2 Type 2 reports are generally preferred in vendor risk assessments because they are evidence-based.
• Leverage Automation: Simplify compliance with tools that automate monitoring, evidence collection, and reporting. Focus your team on strategic tasks, not manual ones.
• Collaborate Across Teams: Work with GRC, IT, and procurement teams to align compliance efforts with organizational goals.
• Continuously Assess and Adapt: Regularly review your compliance posture and stay ahead of changes to SOC 2 requirements. Address gaps proactively to maintain confidence and resilience.

With a proactive approach and the right tools, your organization can turn SOC 2 compliance into a competitive advantage, building resilience across your entire digital ecosystem.