There’s a lot of work (and excitement) that goes into building a technology business. You have to think about everything from fundraising and hiring to product development and security measures. As a CEO, you need to be present across a number of different verticals, making decisions that could shape how your business progresses into the future. 

One of the things that many CEOs and executives at new tech companies tend to forget about until they need to think about it is data protection and customer security. This comes up faster for the businesses that are handling large swathes of customer data — or the ones that want to work with large enterprises that operate under strict regulations. 

Becoming a SOC 2 compliant vendor is a great way to address major security gaps and build trust with customers — but how do you go about making that happen?

In this article, we cover some of the key questions that startup leaders tend to ask us when they’re still at the early stages of their development. 

What is SOC 2?

SOC 2 reporting rules have been developed by the Association of International Certified Professional Accountants (AICPA), and they’re designed to ensure trust between service providers and their clients by monitoring data security, availability, confidentiality, and privacy. They also ensure processing integrity on the company’s part. A SOC 2 compliant company is one that has complete reports on file proving its maintenance of proper oversight and internal corporate governance.

When should I invest in a SOC 2 audit process?

To us, the best time to focus on SOC 2 is once you’ve achieved Series B. With the additional funding and investor support, this is a great time to expand your customer base with large enterprise customers — SOC 2 can help make that happen.

But security threats aren’t always predictable — does SOC 2 account for unknowns?

Things change quickly in the cloud and malicious activity doesn’t always approach from a predictable direction. But part of SOC 2 compliance involves recognizing what baseline normal activity looks like, so when anomalies occur, alerting systems can be put in place. Appropriate alert systems are those that filter false positives and recognize things like unusual file transfers, access to privileged accounts, or areas of data exposure.

What about audit trails?

Strong security protocols are flexible. This means that not every single exposure or assault can be prevented, but these exposures can be recognized and dealt with expediently when they happen. And just as importantly, each anomalous incident can be tracked, recorded, analyzed, and used to alter the existing system and strengthen weaknesses. SOC 2 compliance means establishing clear audits of all security related activity.

What is the time investment for achieving SOC 2 compliance? 

A SOC 2 Type 2 audit can take from 6-12 months to complete. You’ll also have to take the time up front to ensure you’ve established all the security measures you need to achieve compliance. 

If my company hasn’t achieved SOC 2 compliance yet, what should I do?

SOC 2 compliance should be considered a requirement for all companies that handle secure data and expect to conduct business in a competitive 21st century landscape. And CEOs should embrace the compliance process fearlessly—and quickly. Almost all of the required protocols are fully manageable, even for companies that haven’t yet taken the first step. 

The best thing you can do is bring in third-party support to help you navigate the process so that a) you don’t have to hire a full-time team and b) you can leverage years of expertise in enabling SOC 2 compliance.

Looking to get started with SOC 2? Get in touch and let’s chat about how our team can help.

‍