Here’s why SOC 2 compliance matters so much: A Q&A with our Operations Manager
Recently, DemandLab completed Service Organization Control (SOC) 2 Type 1 certification, which confirms a company has adequate measures to protect client data and ensure the security and privacy of sensitive information.
SOC 2 is a voluntary protocol companies can choose to comply with; it indicates a company’s controls they have in place to protect sensitive customer information. It’s an audit performed by an independent third party to assess a company’s systems, policies, and procedures to make sure the confidentiality and integrity of customer information remain protected.
DemandLab Manager of Operations Richard Hall oversaw DemandLab’s SOC certification process; we sat down with him to answer a few simple questions about what can be a complex endeavor.
What kind of business needs to have SOC compliance?
A number of service organizations are required to undergo a SOC examination, including payroll or medical claims processors, data center companies, loan servicers, and Software as a Service (SaaS) providers that may touch, store, process, or impact financials or sensitive data of their users or clients.
SOC 2 isn’t mandatory in a legal sense, and certification isn’t required by law. Most business-to-business (B2B) and SaaS vendors, however, should seriously consider being certified—if they haven’t already—because SOC 2 is often a requirement in vendor contracts.
Why is SOC 2 compliance important?
Several reasons: First, it demonstrates DemandLab’s commitment to security and privacy to current and potential clients, partners, and investors. Second, SOC 2 certification can also be a requirement for certain types of clients, particularly those in highly regulated industries such as finance and healthcare. Also, it helps us identify and address any weaknesses in our controls, leading to a stronger and more secure overall infrastructure.
SOC 2 compliance can also mitigate costs. In 2021, the average cost for a single data breach was $4.2 million. And those costs keep rising. So by going through the exercise of a SOC 2 compliance audit, we can demonstrate we have mitigated the risks of data breach to a point that we’ve become certified.
What benefits does SOC 2 offer agencies, in particular?
I think having SOC 2 is incredibly important for agencies. Agencies have a unique position in that we’re often inside the ecosystems of our multiple customers; we’re working with them within their own environments. It’s crucial for our customers to have that security and the practices around how we handle that responsibility.
What other reasons might a company need SOC 2?
Overall, SOC 2 compliance provides an organization with multiple benefits, including continuous network monitoring, centralized visibility, reduced cybersecurity costs, and better collaboration.
One other point I wanted to mention is the regulatory compliance aspect of SOC 2. That aligns with other data security frameworks, including the Health Insurance Portability and Accountability Act (HIPAA) and International Organization for Standardization (ISO) 27001. If you need to be compliant in these areas, attaining SOC 2 certification can speed up your organization’s overall compliance efforts.
Anything else you’d like to share?
Just that now that DemandLab has obtained SOC 2 compliance, we can offer our clients an added level of assurance and peace of mind. It demonstrates our commitment to protecting their data and meeting their security and privacy needs.
Think of it like jump-starting the trust battery between customers and service providers.
To learn more about DemandLab, SOC 2 compliance, or how we can help with the safety and security of your data, contact us.