When looking into security frameworks, the alphabet soup of SOC-1, SOC-2, HITRUST, ISO 27001, ISO 27701, ISO 22301, FedRAMP 3PAO, CMMC 3PAO, QSAC, and CSA STAR may make you dizzy.
However, supply chain software users should keep SOC-2 Providers in the US.
SOC-2 – pronounced “sock two” was developed by the American Institute of CPAs (AICPA) and provides criteria for managing client data based on five principles: security. Availability, processing integrity, confidentiality, and privacy. It is a stringent audit process that has established the gold standard for ensuring software suppliers manage data ethically and securely.
Security audits are becoming increasingly important as more manufacturers, distributors, and other supply chain players embrace digital transformation. The cost of a SOC-2 certification substantially surpasses the cost of data breaches, privacy violations, or system outages.
Digital risks and assaults are evolving, and successful supply chain firms will be those who re-calibrate their security policies. Those that fail to prioritise security will be severely disadvantage. A SOC-2 audit indicates to key stakeholders a company’s commitment to providing safe and secure services while also guaranteeing that their clients’ information and assets are carefully secure.
Here’s a breakdown of the audit’s five core principles:
Systems should be well-protected, with strict access and permissions structures. Unauthorized information sharing and vulnerable systems will not be permitt. As raw materials supply chains become more digital, it is critical to safeguard them with the same deliberateness that we secure physical premises.
Availability. When necessary, information systems should be available both internally and externally. It is not a particular metric of server uptime, but rather an evaluation of whether the necessary systems are in place to operate, maintain, and monitor a system. Supply networks are more important than ever before, and current technology should make this possible.
Systems must function as efficiently as possible. Fulfil precise goals without additional delays or data modification, and process in a legitimate and consistent manner.
Sensitive information must be stored and handled in such a way that unauthorised parties cannot access it. This is especially critical for supply chain platforms. Where several parties may use a piece of software but should only view specific information and not that of their counterparties.
SOC-2 is tough, however keep in mind that certification does not imply a “perfect system.”
The cybersecurity landscape advances faster than nearly any other computing or engineering discipline. Daily software updates, patches, and ongoing conversations try to solve issues with the underlying software systems that we use every day — and this necessitates an organisation paying close attention to the requirements described above.
SOC-2 provides a very concrete strategic paradigm for how to approach secure system design in large-scale platforms. Not just another compliance issue or regulatory necessity. As supply chains digitally shift. Businesses should expect that the software providers with whom they deal be SOC-2 compliant as well.
Is your supply chain software SOC-2-compliant? The SOC Seal is a symbol of trustworthy service and accountability, and if yours does not have it, you should get it. The certification process is rigorous and may cost thousands of dollars. But it is well worth it. SOC-compliant systems provide a third-party attestation of the company’s security. Third-party attestation is valuable for any business that relies on third-party service providers. Moreover, if your software provider is not SOC-2-compliant, your data could be unsecured and vulnerable to hackers.