In seconds, a data breach can damage a brand's reputation and disrupt its future. According to IBM, the average cost of data breaches last year was $4.88 million1. Unfortunately, the threat of data breaches can increase when companies work with third-party vendors. That’s one reason Andrew Reise has worked to secure a SOC 2 Type II certification.
But not all leaders understand what the SOC 2 Type II certification is or why it’s an essential credential to look for when selecting a third-party vendor. Here’s how to understand what SOC 2 compliance means, why SOC 2 is essential when working with third-party partners, and how SOC 2 can give brands a competitive advantage.
Understanding the SOC 2 Type II Certification
The American Institute of Certified Public Accountants (AICPA) assigns several different types of certifications for data security. For instance, the organization conducts SOC 1 and SOC 2 audits as well as Type I, Type II, and Type III classifications. To understand the SOC 2 Type II certification, it helps to define this credential’s two qualifications: SOC 2 and Type II.
What is SOC 2?
The Service Organization Control (SOC) certification sets data safety standards and tests organizations on their ability to keep data secure. For the SOC 2 certification, the AICPA evaluates an organization’s security practices and controls across five key areas:
- Security
- Integrity
- Processing
- Availability
- Privacy
SOC 2 Type I vs. Type II Compliance: What’s the Difference?
Under the SOC 2 certification, there are two types of classifications: Type I and Type II. Here’s the difference between these two credentials:
- SOC 2 Type I: This security audit tests how well an organization can control, house, manage, and transfer data at the time of the evaluation.
- SOC 2 Type II: This test examines organizations’ security controls on a longer-term basis. Like Type I, it assesses the organization’s ability to handle, house, and transport data. However, Type II tests those controls over a longer period of time, rather than evaluating them at the single moment of the audit.
According to the compliance software provider Vanta, the SOC 2 Type II certification is generally considered to be a more thorough compliance test than Type I. That’s because the organization must prove it can fight off cyberattacks and safely control data over a longer period of time.
Why does SOC 2 matter for businesses?
Even if a business locks down data, its third-party vendor may be vulnerable to data theft. According to Security Magazine, 29 percent of data security breaches happen because of third-party attacks.
The SOC 2 Type II certification signals to businesses and customers that third-party vendors are trained and prepared to fight off cybersecurity attacks. This added layer of trust doesn’t just give business leaders peace of mind about their data—it also signals to their customers that the entire operation is secure, which can increase business.
Why choose CX consultants with SOC 2 certifications?
Wondering why businesses should take the time to screen for SOC 2 certifications? Here are the benefits of partnering with customer experience (CX) consultants who hold SOC 2 Type II credentials:
- Increase information safety: If any point of the business’s vendor supply chain is vulnerable to attacks, it could cause a data breach. Vendors with SOC 2 certifications are at a lower risk of data breaches because they have stricter controls in place.
- Reduce the risk of cybersecurity issues: Cybersecurity threats constantly change, and attackers adapt their tactics. According to Skybox Security, 30,000 new cyber vulnerabilities were discovered last year alone. The SOC 2 certification ensures organizations are prepared to preempt attacks and proactively protect against new hacking attempts.
- Increase trust and secure more business: Clients don’t just evaluate organizations based on their own information security, especially in data-sensitive industries such as health insurance, finance, and government. They also want to trust the organizations’ third-party connections. This means that working with SOC 2-compliant partners can give a business a competitive advantage.
- Protect employee privacy: Customers aren’t the only people who worry about data breaches. Employees who think their data could be compromised may not trust their employers with their own data—and that could lead to turnover or work disruptions. SOC 2 certifications help employees feel safer and trust their workplace more.
- Lower the risk of legal violations: In some industries, businesses may break the law or lose their licenses if data leaks. SOC 2 certifications prove that third-party vendors understand how to handle sensitive data and meet legal requirements for data-sensitive industries.
Increase Trust and Customer Loyalty
To keep data secure, organizations need to choose their third-party vendors wisely. Fortunately, prepared CX consultants—including Andrew Reise Consulting—invest time, money, and energy into acquiring a SOC 2 Type II certification. That means we’re qualified to keep data secure within the most sensitive industries.
Interested in learning how CX consultancies work and how Andrew Reise develops strategies that increase customer loyalty? Check out our infographic to learn how our team creates crazy loyal customers.
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