With WOTC one of the necessary items to execute a program is payroll information along with candidate information. With the increased cyber security attacks it imperative that your WOTC vendor have a strong commitment to protecting your data. One effective way to achieve this is by obtaining SOC 2 compliance which is what we at Arvo have in place. In this comprehensive blog, we’ll break down what SOC 2 compliance is, why it matters, and how to achieve it.
What is SOC 2 Compliance?
SOC 2 (Service Organization Control 2) compliance is a certification that validates a company’s commitment to data security, availability, processing integrity, confidentiality, and privacy. It is an auditing standard established by the American Institute of CPAs (AICPA) specifically for technology service providers and other organizations that process customer data.
Why Does SOC 2 Compliance Matter?
Trust and Confidence: SOC 2 compliance demonstrates that vendors have the necessary controls in place to safeguard a customer’s sensitive data. It builds trust and confidence in a vendor’s ability to handle customer information securely.
Market Differentiation: Achieving SOC 2 compliance shows that a vendor prioritizes data security. It becomes an important element that you should consider when selecting one.
Legal and Regulatory Requirements: In many industries, maintaining certain security standards is not only good practice but also a legal requirement. SOC 2 compliance helps organizations stay in line with industry regulations.
Data Breach Prevention: Compliance with SOC 2 standards involves implementing robust security measures that significantly reduce the risk of data breaches and cyberattacks.
Internal Process Improvement: The process of achieving SOC 2 compliance often requires evaluating and enhancing an organization’s internal processes, leading to improved efficiency and effectiveness.
Achieving SOC 2 Compliance: Key Steps
- Determine Scope: Identify the systems, processes, and data that fall under the scope of the compliance audit.
- Select Trust Services Criteria: SOC 2 has five trust services criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy. Choose the criteria that align with your organization’s services.
- Design Controls: Develop and implement controls that address the chosen trust services criteria. Controls should cover policies, procedures, and technical safeguards.
- Risk Assessment: Conduct a thorough risk assessment to identify potential threats and vulnerabilities to your systems and data.
- Implementation and Testing: Put your controls into action and test their effectiveness. Regularly assess and adjust controls as needed.
- Auditing and Reporting: Engage a third-party auditing firm to evaluate your controls and issue a SOC 2 report. There are two types of reports: Type I (point-in-time assessment) and Type II (assessment over a specified period).
- Continuous Monitoring: SOC 2 compliance is an ongoing effort. Continuously monitor your controls and processes to ensure they remain effective.
In a digital landscape where data breaches and cyber threats are prevalent, SOC 2 compliance is a powerful tool that your WOTC vendor should have so that you can trust and ensure your data’s security, along with protecting sensitive information. SOC 2 compliance is not a one-time achievement but a continuous commitment to maintaining high security standards. Ensure your WOTC vendor has a commitment to protecting your data through SOC 2 compliance.