Businesses are caught in an increasingly dangerous position. They need vendors to conduct research but don’t want to risk third-party data breaches. There’s reason to worry; according to the CyberCGX and Ponemon Institute, third-party breaches have hit more than 80 percent of organizations and cost an average of $7.5 million.
However, there are security certifications that businesses can use to vet third-party vendors. Although multiple security certifications are available, the American Institute of Certified Public Accountants (AICPA) SOC 2 Type II certification is an especially robust credential for third-party researchers. In this article, we look at the SOC 2 Type II Certification and discuss why it should be a deciding factor when choosing a research provider.
Why Underprepared Vendors Create Customer Data Risks
Working with uncertified third-party partners during research is risky. That’s because research projects require these vendors to gather, handle, process, and store sensitive data. If sensitive data is stolen, it can cause everything from reputational and financial losses to public safety risks, lawsuits, and legal violations.
What’s more, cyberattacks are evolving faster than ever. According to a Keeper Security Insight Report, 95 percent of IT leaders believe cyberattacks are becoming more sophisticated than they’ve ever been. One of the best ways to be confident that third-party vendors are taking threats seriously and actively preparing their teams to protect data is to screen for a trusted data security credential like the SOC 2 Type II Certification.
How Does SOC 2 Type II Compliance Ensure Data Security?
The SOC 2 Type II Certification is a compliance credential that tests an organization on its customer data security processes and data safety controls. In order to earn the SOC 2 Type II certification, an organization has to pass a series of evaluations in the following areas:
- Vendor software systems: An auditor assesses the data security of all software, apps, and programs that the organization uses to handle data.
- IT Infrastructure: The auditor evaluates the organization’s hardware and cloud security as well as the physical structures supporting its data systems.
- People and employees: The assessor examines how well the organization's people prepare for cyberattacks and protect personal data.
- Data types: The auditor looks at which types of information the organization deals with and what methods are used to house sensitive data.
- Processes and procedures: Auditors make sure the organization is taking the proper steps to keep data secure and fight off cyberattacks.
Why SOC 2 Compliance Is a Must-Have Quality for Research Vendors
Companies in data-sensitive industries (such as finance, healthcare, and utilities) often seek out SOC 2 research partners. Here are a few reasons why SOC 2-certified vendors are trusted in industries where data breaches have particularly severe consequences:
- It increases data security: SOC 2 doesn’t just signal that a partner is capable of reacting to customer data security threats. It also indicates the certification holder is constantly preparing to pre-empt new and emerging security threats. This means that partnering with a SOC 2 Type II third party gives organizations an added level of security and reduces the risk of unauthorized access, breaches, and misuse.
- It promotes a culture of trust and transparency: Choosing a pre-vetted third party sends a clear signal about the organization’s priorities to regulators, customers, and employees.
- It helps organizations clear legal and regulatory hurdles: Organizations in many industries, such as healthcare and finance, don’t just risk reputational and financial damages when processing personal data—they also risk legal violations. For instance, the Health Insurance Portability and Accountability Act (HIPAA) and Gramm-Leach-Bliley Act (GLBA) both place regulations on how organizations can use personal data. Vendors that are SOC 2 Type II certified are trained to help organizations in those data-sensitive industries meet compliance requirements and minimize the risk of legal violations.
Learn How SOC 2-Secure Research Is Giving Businesses an Edge
Organizations can secure customer trust, reassure regulators, protect data, and reduce their risk of security breaches by partnering with SOC 2 Type II certified vendors—and the right third-party research can give businesses a significant competitive edge.
Andrew Reise, which is SOC 2 Type II certified, recently helped a large insurance provider gather research, design a full customer experience strategy, and navigate changes in the industry. The final CX strategy led to happier customers, lower costs, and a surge in memberships. Read our full case study to learn how our consultants used customer research to help our client’s team outdo the competition.
