The Benefits of SOC Reports for Cybersecurity

The rise in cybercriminal activity is raising many questions among companies. How do businesses properly prepare for cyber threats? How do they know if their information is secure? How will companies respond in the event of a threat?

System and Organization Controls (SOC) reports administered by the American Institute of CPAs (AICPA) attempt to unravel this mystery for the public by creating tangible evidence of how businesses engage in cybersecurity.

SOC Reports — What Are They?

SOC reports detail the ethics and compliance of service providers with the intent of distribution. If a company has SOC reports at the ready, it will assure recipients the provider is trustworthy.

To obtain a SOC report for an organization, a certified public accountant (CPA) must audit the business. This third-party validation process ensures reports contain unbiased information based on outside standards. With 62% of executives anticipating SOC for cybersecurity requests, it proves the program’s significance.

There are different types of SOC reports to obtain, all entailing additional details such as financial reporting and cloud monitoring, but SOC reports for cybersecurity outline the efficacy of an organization’s risk management program. A SOC-2 report works well with SOC reports for cybersecurity, as SOC-2 evaluates internal policy and privacy practices, but they are separate.

CPAs will analyze how organizations detect, take action on and come back from criminal events like data breaches — creating the basis of their SOC report for cybersecurity. It includes three primary elements:

• Management’s descriptions of the cybersecurity risk management program: As the component claims, management will outline how the company will act when compromised by cyber threats. This must follow description criteria, so there is continuity in reports regardless of administration.
• Management’s assertions: This is the opportunity for the command to validate that their descriptions follow the criteria to execute the AICPA’s control criteria properly.
• Practitioner’s report: This contains the opinionated evaluation detailing how well the description and assertion adhered to the criteria and if they were effective cybersecurity measures.

The evaluation can help validate current cybersecurity efforts or reveal necessary improvements. With annual audits, CPAs do not neglect SOC reports for cybersecurity for long since they must ensure they update with the evolving industry.

Clarifying Cybersecurity — SOC Reports for Cybersecurity in Action

Companies collaborating, combining, or needing third-party services can determine their cybersecurity infrastructure's legitimacy with a simple SOC report. The report encompasses a vast array of cybersecurity-related protocols and procedures that streamline processes.

SOC reports for cybersecurity provide a common language for businesses and individuals — private or public, regardless of industry — to have a blanket understanding of cybersecurity protocols across the board. Laying this foundation is revolutionary for removing ambiguity from regulated risk management practices.

It also helps provide helpful information for prospective investors and senior management — are their financial and professional investments and data in a safe place? Private and government bodies alike are prioritizing upgrades in cybersecurity regulation and for companies to keep up with this landscape, they must make time for third-party assessments.

The SOC report for cybersecurity supplements other proofs of audit, such as the International Organization for Standardization (ISO) 27001. That analyzes similar criteria but on an international scale. The SOC report for cybersecurity has the benefit of being more regionally relevant to the United States, demonstrating attention to acquiring as many third-party references as possible.

Analyzing CPAs could also educate businesses on how to improve potential gaps in their protocol. It could offer actionable recommendations to mitigate risks the organization may not have been aware of. Additionally, it could provide a helpful reminder to perform security audits continually to ensure adherence to best practices.

Benefits of SOC Reports for Cybersecurity — Trust and Communication

One of the ways SOC reports carry so much gravity is they instill trust that has been long since removed from the digital sphere. Companies working with big data will have to be the ones to do the work to protect customers — not enough know how to do it themselves.

With cybercriminal activity at an unprecedented high, trust is minimal and businesses must find ways to foster it back to health. SOC reports prove to employees and B2B relationships how compliant and prepared an organization is in the event of cyber threats. There’s nothing more important in the digital world than peace of mind.

It doesn’t just provide relief for people outside the company — the benefits are almost more visible internally. Imagine a powerful cyberattack that costs a business millions of dollars in a ransomware scam or lawsuits from customers for unintentionally releasing private information. Security incidents are preventable and more mental and physical resources are available to achieve a company’s primary goals if it isn’t preoccupied with potential threats.

Management or boards of directors who are removed from the floor may be inquiring about cybersecurity implementation. SOC reports for cybersecurity keep them in the loop to maintain adequate oversight.

These audits reduce costs by minimizing vendor inquiries, extraneous audits, and meetings with clients questioning security practices. Just display the SOC report and all questions will be answered, saving time and resources. Everyone’s needs are met, from future clients to curious stakeholders.

They also save money for businesses by ensuring their investments in software, hardware and staffing are adequate for risk management. If the audit highlights gaps, it could allocate funds to proper places to ensure budgets adjust intelligently.

SOC reports demonstrate a collective ability from multiple sectors to improve the health of the digital world. With the AICPA auditing companies of all kinds, it helps align priorities. Everyone is working to build a safe digital environment and rallying for standards and lawmaking. This collaborative mindset will lead to faster development for more reinforced cybersecurity in the future.

Using SOC Reports for Better Cybersecurity

There is no reason not to seek out a SOC for cybersecurity, as it will only improve trust with everyone, including colleagues, investors, and employees. It will assist a business’s bottom line by staying ahead of the curve with extra credentials to stand above the rest.

Most importantly, it will reinforce the importance of every company performing cybersecurity audits. SOC reports provide a solid baseline for standardized safety.