As an Information Communication Technology (ICT) service provider, you may be wondering about the best way to demonstrate your commitment to security and reliability to your clients. While ISO certifications are widely recognised, SOC (Service Organisation Control) reports offer distinct advantages.
Let's explore some frequently asked questions to help you understand why SOC reports are crucial for your business.
Q1: What's the main difference between SOC reports and ISO certifications?
A: The primary distinction lies in the depth and nature of the assurance provided: · ISO certifications (e.g. ISO 27001) offer a point-in-time assessment of your information security management system against a standardised set of requirements · SOC reports, particularly SOC 2 Type II, provide an in-depth evaluation of your controls' effectiveness over an extended period (typically 6-12 months). They include an independent auditor's opinion, offering a higher level of assurance to your clients.
Q2: How are SOC reports more tailored to service organisations?
SOC reports are specifically designed for service organisations like ICT providers (Data Centres and Colocation Providers; Managed Security Service Providers; IT Outsourcing & Managed Service Providers; Software as a Service (SaaS) Providers etc). These reports include:
- A detailed narrative about your company's background, services, and systems
- An assessment of controls relevant to your specific services
- Flexibility to choose which Trust Services Criteria (security, availability, processing integrity, confidentiality and privacy) are most relevant to your business and clients.
This tailored approach provides a more comprehensive and relevant evaluation of your security posture compared to the one-size-fits-all nature of ISO certifications.
Q3: How do SOC reports benefit BDO’s clients?
- SOC reports offer several client-centric benefits:
- Increased trust and confidence in your services
- Detailed insights into your operational security controls
- Support for clients' own compliance requirements (e.g. GDPR, DORA)
- Potential cost savings by reducing the need for client-conducted audits
- Competitive advantage when bidding for contracts.
Q4: Can SOC reports help with regulatory compliance?
SOC reports are increasingly recognised by regulators and stakeholders as a comprehensive assurance mechanism. They can:
- Incorporate multiple frameworks (including ISO 27001) for broader compliance coverage
- Address specific regulatory requirements (e.g. DORA, GDPR)
- Provide evidence of compliance for third-party risk management programmes.
Q5: How can SOC reports support our marketing and business development efforts?
SOC reports are powerful marketing tools:
- They serve as qualifiers for business readiness
- Can replace lengthy security questionnaires in client onboarding processes
- The SOC logo and report can be featured in proposals and RFPs
- Demonstrate a commitment to transparency and security, enhancing your reputation.
Q6: Do we need to choose between SOC reports and ISO certifications?
Not necessarily. While SOC reports offer distinct advantages, many organisations benefit from having both:
- ISO 27001 provides a structured framework for information security management
- SOC 2 offers detailed assurance on the effectiveness of your controls
- Combined, they provide comprehensive coverage and appeal to a wider range of clients and regulators.
Q7: How often do we need to obtain a SOC report?
SOC 2 Type II reports typically cover a period of 6-12 months. Many organisations choose to undergo annual SOC audits to provide continuous assurance to their clients. This ongoing process also helps in maintaining and improving your control environment over time.
In conclusion, while ISO certifications have their place, SOC reports offer ICT service providers a more comprehensive, client-focused and operationally relevant form of assurance.
By obtaining a SOC report, you're not just ticking a compliance box - you're making a strategic investment in your business's credibility, security posture and competitive advantage.
How BDO can help
BDO’s technology advisory experts provide end-to-end support, using industry expertise and a global network to help you meet your business goals.
Contact your local firm’s technology assurance specialists to learn more about how BDO assists companies in understanding what type of certification is the best to for your business to demonstrate its commitment to security and reliability to your clients.
Original content provided by BDO Malta