Why Should SaaS Businesses Become SOC Certified?
In the Software as a Service (SaaS) industry, ongoing success relies on security and the ability to provide clients with certain reassurances on operational policies, privacy, and cybersecurity. Not only is this transparency and professionalism considered best practices, it is also required by the AICPA’s Trust Service Principles. Clients look to avoid risky vendors; ease their mind and invest in a SOC audit for SaaS businesses.
In many cases, a SOC report is the result of customer demand, but it can also be a tool for businesses looking to be proactive about their processes and security controls. In today’s world, however, our words alone are not enough for potential and even current clients. An independent auditor is the best way to achieve that assurance. Security is a concerning issue for all organizations, especially SaaS, who are responsible for ensuring data is properly handled and stored. Not being proactive in these efforts makes SaaS companies vulnerable to attacks that can be expensive, time consuming, and resource draining.
SOC audits are not “one size fits all,” but rather tailored to each organization. Taking into consideration the unique business practices of your company, a SOC 2 Audit can ensure you are complying within the cybersecurity measures that are particularly key to your industry. SOC 2 was set up to define the criteria for how external SaaS companies should manage their customers’ data. It uses 5 Trust Principles set out by the AICPA:
- Security – Is the system protected against unauthorized access?
- Availability – Is the system available for operation and use as agreed?
- Processing Integrity – Is the system processing complete, valid, accurate, timely, and authorized?
- Confidentiality – Is the information that’s designated as confidential protected as agreed?
- Privacy – Is personal information collected, used, retained, disclosed, and destroyed in accordance with the entity’s privacy notice?
There are many benefits to investing in a SOC audit for SaaS businesses, such as the ability to reach new clients that require it, reduction in costs of multiple audits, and exposure of any security gaps in your organization.
If you have any questions about SOC audits or how to get the process started for your organization, please contact us.