Data Security

In a world where data breaches and leaks are making headlines every week, organizations need to realize that protecting employees and reducing liability must be essential to the core of business operations. Thankfully, SOC 2 Compliance is one of a few safeguards that companies can utilize to address their vulnerabilities and demonstrate they take cybersecurity and privacy seriously.

SOC, which stands for System and Organizational Controls, is a framework developed by the American Institute of Certified Public Accountants (AICPA) to provide a regular, independent audit of the controls that a company has implemented to mitigate any risk associated with data.

While there are three types of SOC audits, SOC 2 is the most utilized when it comes to cybersecurity. The benefits of SOC 2 compliance cannot be understated, as it provides organizations with a bird’s-eye view of how a prospective vendor handles their client’s data. Therefore, organizations who earn the SOC 2 compliance certification clearly take their data very seriously.

Here are some additional benefits of SOC 2 compliance.

1.    Brand Reputation

In 2022, the average cost of a data breach has reached a record high of US$4.35 million, according to the 2022 Cost of a Data Breach report by IBM and the Ponemon institute. Now, building trust between an organization and a client goes a long way. If a business has had a breach in the past or is at risk of having one in the future, that can be absolutely devastating for brand reputation. Once a data breach occurs, it can be nearly impossible to fix that broken trust.

When an organization has proven itself to be SOC 2 compliant, that is proof that they’d put their reputation on the line to show that they take their client’s data seriously.

2.    Confidence in Vendor Selection

Another benefit of SOC 2 compliance is the ability to utilize the certification as a selection requirement for prospective vendors. With so much at stake in today’s world, many companies are requiring that vendors can prove they are properly protected with SOC 2 compliance certifications.

Companies can claim they are secure all they like, but without hard evidence, it’s difficult to validate their claims. When reviewing potential vendors, some organizations may even require that potential vendors have a SOC 2 compliance report right from the start. Verifying compliance in advance increases confidence that the vendor has an understanding of data protection responsibilities and will protect the data of its clients.

3.    Enhanced Security Best Practices

Another possibly overlooked benefit of SOC 2 compliance stems from the ability to better fight back against cybersecurity attacks and breaches. An audit of an organization’s information security practices can allow for better insight into how they can improve those practices.

Leveraging a SOC 2 compliance certification can also assist employees and internal teams in uniformly understanding security protocols and industry standards. Properly understanding how to detect unusual activity or access to sensitive data can prevent a potential risk from morphing into a breach. Additionally, SOC 2 compliance can benefit employees by addressing how they respond to changes in the data flow, encouraging them to identify threats sooner rather than later.

4.    Cost Savings for The Future

Let’s face it, SOC 2 audits are expensive. Depending on the size and complexity of an organization, the cost can range significantly. Yet, on the other hand, settlements for a breach can also be costly, not to mention the fines as deemed by government entities.

The cost of a data breach pales in comparison to the price of certification, not to mention the ripple effect of a breach. As stated previously, customer trust and brand reputation can be shattered with just one misstep in a data leak for organizations. So, future-proofing by requiring vendors to possess SOC 2 compliance can prove to be beneficial in monetary ways, but also help improve reputation as well.

SOC 2 Compliance in HR

Organizations don’t always require SOC 2 compliance among HR service providers. It is increasingly obvious that companies who are proactive in their approach to cybersecurity and privacy are reaping the benefits. The most substantial benefits of compliance come from obvious areas, such as increased confidence from making sure that all vendors have data protection controls in place and protecting brand reputation. Yet, there are a few unforeseen benefits to SOC 2 compliance as well, including enhanced security best practices for an organization and future cost savings in the wake of a data breach or leak.

Vault Verify is proudly SOC 2 certified to protect you and your organization from evolving regulations governing privacy and employee rights.

As the industry-leading technology platform that securely automates requests for verification of employment and income for FREE, we would love to assist you further to improve your data security while reducing your corporate liabilities. Please contact us today to find out more about how you can save time and money while reducing labor and liability with automation solutions from Vault Verify!