Introduction to SOC 2 & Its relevance
Security-conscious Businesses, especially those offering Cloud-based Services, often ask: What are the 5 criteria for SOC 2? Understanding these five Trust Service Criteria is essential for Organisations aiming to demonstrate strong internal Controls over Data & System Operations.
SOC 2, short for System & Organisation Controls 2, is a Framework developed by the American Institute of Certified Public Accountants [AICPA] to evaluate how well a company protects Data & uphold Privacy & Availability. Unlike SOC 1, which focuses on Financial Reporting Controls, SOC 2 focus on Non-Financial Controls critical for building Trust in Digital Services.
Understanding the Trust Services Criteria
The five (5) criteria in SOC 2, also called the Trust Services Criteria, form the foundation of the Audit process. So when you ask What are the 5 criteria for SOC 2?, the answer lies in these Core Principles:
- Security
- Availability
- Processing Integrity
- Confidentiality
- Privacy
Each of these serves a unique function in evaluating the reliability of an Organisation’s System & Service commitments. Let us break them down.
Security: The Core Principle of SOC 2
Security is the only mandatory criterion in every SOC 2 Audit. It addresses how systems are protected against Unauthorised Access, Data Breaches or Misuse of Information.
Common Controls evaluated under this criterion include:
- Firewalls & Multi-factor Authentication
- Intrusion Detection & Monitoring
- Access Management Policies
Understanding What are the 5 criteria for SOC 2? always begins with Security, as it underpins the entire Framework.
Availability: Ensuring Operational Uptime
Availability focuses on whether systems are Accessible & Operational as promised. It is particularly important for SaaS & IaaS Businesses whose Customers depend on consistent uptime.
Controls in this area include:
- Disaster Recovery planning
- Backup & Restoration processes
- System performance monitoring
When Businesses ask What are the 5 criteria for SOC 2?, Availability is often a top concern for Customer satisfaction & Reliability.
Processing Integrity: Accuracy in Action
Processing Integrity ensures that system processing is complete, valid, accurate & authorised. This criterion matters most for Services where automated processes directly affect Customers, such as E-commerce or Financial Platforms.
Relevant Controls might include:
- Input & Output validation
- Reconciliation Procedures
- Audit trails
To answer What are the 5 criteria for SOC 2?, it is important to see that integrity is not just about Data it is about the way data flows through your Systems.
Confidentiality: Controlling Sensitive Data Access
Confidentiality relates to how Sensitive or Classified Information is protected. It goes beyond basic Data Security by focusing on limiting access based on Business Need.
This includes Controls such as:
- Role-based Access Control
- Encryption for data at rest & in transit
- Information Classification & Retention Policies
A crucial part of answering What are the 5 criteria for SOC 2? is understanding the balance between Data Utility & Control.
Privacy: Respecting & Safeguarding Personal Data
Privacy, although similar to Confidentiality, zeroes in on Personal Data, how it is collected, used, stored & shared. It often involves Compliance with Regulations like GDPR or CCPA.
This includes practices like:
- Transparent Privacy notices
- Data Subject access request handling
- Consent Management Mechanisms
For Companies asking What are the 5 criteria for SOC 2?, Privacy is often the most legally sensitive & regulated area.
Limitations & Challenges in Applying the Criteria
While the five (5) criteria provide a solid Framework, implementation is not always straightforward. Companies may face:
- Resource constraints in smaller Teams
- Overlap with other Compliance efforts (such as: ISO 27001 or HIPAA)
- Confusion over which criteria apply to their specific services
Knowing What are the 5 criteria for SOC 2? is just the first step. The bigger challenge lies in aligning them with your Operational & Legal environment.
How Teams can Prepare for a SOC 2 Audit?
Preparation begins with a Readiness Assessment. This helps identify Control gaps, Resource needs & Timeline expectations.
Key steps include:
- Conducting Internal Risk Assessments
- Documenting all relevant Policies & Procedures
- Implementing Technical & Administrative safeguards
- Partnering with an Auditor experienced in your Industry
Understanding What are the 5 criteria for SOC 2? empowers Teams to design & defend a Compliance posture that is both Strategic & Sustainable.
Takeaways
- SOC 2 focuses on five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality & Privacy.
- Security is always mandatory in any SOC 2 Audit.
- Understanding What are the 5 criteria for SOC 2? helps Organisations build trust with Customers & Stakeholders.
- Implementation of Controls must be tailored to your Services, Risk Appetite & Compliance obligations.
- Continuous review & Audit readiness are key to maintaining SOC 2 Compliance.
FAQ
What are the 5 criteria for SOC 2?
The five (5) criteria are Security, Availability, Processing Integrity, Confidentiality & Privacy. These trust principles evaluate the effectiveness of Internal Controls over Data Systems.
Why is Security the only mandatory criterion in SOC 2?
Security is the foundation of all other criteria. Without proper Security Controls, other trust criteria like Availability or Privacy become ineffective.
Can a Company choose only certain SOC 2 criteria?
Yes. While Security is mandatory, Companies can include other criteria based on Service commitments & Risk profiles.
How often should a Company review its SOC 2 Controls?
SOC 2 Controls should be reviewed annually or whenever there is a significant change in Systems or Business processes.
Is SOC 2 the same as ISO 27001?
No. SOC 2 is Audit-based & specific to U.S. frameworks. ISO 27001 is an International Standard for Information Security Management Systems.
What Industries typically require SOC 2?
Tech Companies, SaaS Providers, Fintech Firms & any Service-based Businesses handling Customer Data often require SOC 2 Compliance.
Do Startups need to comply with all five SOC 2 criteria?
Not necessarily. Startups usually begin with the Security criterion & add others as they scale or face Client requirements.
Does achieving SOC 2 Certification guarantee Security?
No Framework guarantees absolute Security, but understanding What are the 5 criteria for SOC 2? helps build a strong, trust-based posture.
Need help?
Neumetric provides organisations the necessary help to achieve their Cybersecurity, Compliance, Governance, Privacy, Certifications & Pentesting goals.
Organisations & Businesses, specifically those which provide SaaS & AI Solutions, usually need a Cybersecurity Partner for meeting & maintaining the ongoing Security & Privacy needs & requirements of their Clients & Customers.
SOC 2, ISO 27001, ISO 42001, NIST, HIPAA, HECVAT, EU GDPR are some of the Frameworks that are served by Fusion – a centralised, automated, AI-enabled SaaS Solution created & managed by Neumetric.
Reach out to us!
