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SOC 2 Compliance: A Step-by-Step Guide to Preparing for Your SOC 2 Audit

Compliance

SOC 2 Compliance: A Step-by-Step Guide to Preparing for Your SOC 2 Audit

Fedir Kompaniiets

DevOps and Cloud Architecture Expert Co-founder of Gart

October 7, 2024

Table of contents

What is SOC 2?
Trust Services Criteria
Pre-Audit Preparations
SOC 2 Audit Process
Critical Controls for SOC 2 Compliance
Post-Audit Steps
SOC 2 Audit Checklist
Human Factors in SOC 2 Compliance
SOC 1 vs. SOC 2
Key differences between SOC 2 and ISO 27001
Conclusion

SOC (Service Organization Control) audits are a way to show that your internal processes are up to standard—whether it’s managing financial data or protecting sensitive information like customer privacy.

SOC 2 compliance is a set of guidelines that helps companies manage and protect customer data. It’s especially important for businesses that offer services to other companies, like those in IT and cloud services.

If your business handles sensitive information, SOC 2 compliance audit is crucial. Preparing for a SOC 2 audit means following clear steps to make sure your data protection measures are working effectively.

In today’s digital age, being SOC 2 compliant shows your customers that you prioritize data security, building trust and confidence in your business.

What is SOC 2?

SOC 2 (System and Organization Controls 2) is a set of compliance standards developed by the American Institute of Certified Public Accountants (AICPA). It is aimed at service organizations that store customer data in the cloud.The audit assesses a company’s systems and processes based on five trust service criteria: security, availability, processing integrity, confidentiality, and privacy.

Unlike other frameworks that are rigid, SOC 2 is flexible and allows companies to select which trust service criteria they need to focus on, depending on their operational needs.

Trust Services Criteria

SOC 2 focuses on five key trust services criteria:

Security: Ensuring that systems are protected against unauthorized access (both physical and digital).
Availability: Making sure systems are available for operation and use as expected.
Confidentiality: Protecting sensitive information from unauthorized access.
Processing Integrity: Ensuring that data processing systems operate correctly, delivering accurate results.
Privacy: Protecting personal information collected and ensuring it is used appropriately.

Out of these five criteria, security is the only mandatory one. However, most organizations also focus on availability and confidentiality, as they are critical for maintaining customer trust.

Pre-Audit Preparations

Defining the Audit Scope

The first step in preparing for a SOC 2 audit is clearly defining the scope. This scope outlines the specific systems and processes that will be evaluated. It is essential to ensure that the defined information system – infrastructure, software, people, data, and processes – still meets the current business needs. If there have been changes, adjustments to the scope may be necessary.

Control Customization

SOC 2 allows organizations to customize controls based on their operational environment. For example, if your organization has shifted from a waterfall to an agile development process, the controls should reflect this change. Ensuring that controls align with how the business operates helps auditors understand your environment better, leading to a smoother audit process.

Team Readiness

Preparing the internal team for the audit is crucial. Assigning clear roles, setting agendas, and conducting control spot-checks beforehand can save time and ensure that everyone knows what is expected during the audit. Key personnel must understand their roles in explaining controls, providing evidence, and participating in system walkthroughs.

Ask how Gart Solutions can help you with SOC 2 compliance. Contact us today.

SOC 2 Audit Process

The SOC 2 audit is not a one-size-fits-all. Organizations can choose which of the trust service criteria they want to be audited on. This flexibility allows businesses to tailor their audit based on specific operational needs. For example, an e-commerce platform might focus on security and availability, while a healthcare provider might prioritize security and confidentiality.

The audit process itself involves several steps:

Documentation: It is essential to document all processes and policies. Auditors will review this documentation to verify that security measures are in place and that they are being followed. For example, if a company states that it conducts annual access reviews for AWS, it must provide evidence that these reviews actually took place.
Audit Execution: Auditors will examine the company’s controls to ensure compliance. This can involve reviewing data logs, verifying access permissions, and conducting interviews with key personnel.
Audit Types:
- Type 1 Audit: A snapshot of the organization’s compliance at a specific point in time.
- Type 2 Audit: Reviews the operational effectiveness of controls over a period, typically 12 months.

*The key difference between Type I and Type II audits is time. A Type I audit checks if the controls you have in place are working at a single point in time. A Type II audit goes further by testing whether those controls actually worked over a longer period, usually at least six months. Both SOC 1 and SOC 2 audits can come in either Type I or Type II formats, which is why it can get confusing.

Critical Controls for SOC 2 Compliance

SOC 2 compliance requires several key controls across the organization. Some of the most important include:

Access Controls: Implementing principles like “least privilege,” where only necessary personnel have access to sensitive data. Multi-factor authentication is also required for accessing sensitive systems like cloud services.
Encryption: Both encryption at rest (data stored) and encryption in transit (data moving between systems) are crucial. Encryption protects sensitive information from unauthorized access.
Change Management: In software companies, it’s important to maintain strict version control and require independent approval of changes. This ensures that code changes are securely managed and that no unauthorized changes affect the system.

Post-Audit Steps

Reviewing the System Description
After the audit fieldwork is completed, the next step is reviewing the system description. This section of the SOC 2 report details the organization’s systems and processes. It must be reviewed annually to ensure that it reflects any changes in the company’s operations. The system description can be lengthy, often around 30 pages, so early preparation is necessary.

Maintaining Compliance for Future Audits
Once the initial audit is done, it is important to establish an ongoing compliance program. This includes regular control checks, ensuring that controls continue to operate as expected. For example, if a control requires quarterly user access reviews, these must be conducted regularly. Assigning responsibility for each control ensures accountability and reduces the risk of future non-compliance.

Audit Closure and Next Steps
Once the audit is complete, it is essential to schedule a closeout meeting with the auditor to discuss improvements and plan for future audits. This meeting should also cover how to use the SOC 2 report for business purposes, such as sharing it with stakeholders or using it as a marketing tool to demonstrate compliance. Additionally, preparing for the next year’s audit by scheduling key dates and responsibilities is recommended.

SOC 2 Audit Checklist

SOC-2-Audit-Checklist Download

Human Factors in SOC 2 Compliance

While SOC 2 compliance focuses heavily on technical controls, human factors also play a critical role. Processes like employee onboarding and offboarding must be managed consistently to ensure that no unauthorized individuals gain access to systems. For instance, an overlooked background check due to an HR error could compromise compliance.

Automation tools, such as Secureframe, are invaluable in mitigating risks associated with human error. By automating reminders for critical processes (like access reviews or background checks), companies can reduce the chance of non-compliance due to manual oversights.

SOC 1 vs. SOC 2

SOC 1 audits, also known as SSAE16 audits, look at how well your company controls financial reporting. SOC 2 audits focus on other important aspects like security, system availability, data processing accuracy, confidentiality, and privacy. Think of it like comparing apples to oranges—they’re both fruit but serve different needs.

Key differences between SOC 2 and ISO 27001

Table

Aspect	SOC 2	ISO 27001
Definition	Set of audit reports based on Trust Service Criteria (TSC)	Standard for an Information Security Management System (ISMS)
Geographical Applicability	Primarily used in the United States	Internationally recognized
Industry Applicability	Service organizations across various industries	Organizations of any size or industry
Compliance	Attested by a Certified Public Accountant (CPA)	Certified by an accredited ISO certification body
Focus	Proves security level of systems against static principles and criteria	Defines, implements, operates, controls, and improves overall security
Report Types	Type 1 and Type 2 reports	Certification audit and surveillance audits
Purpose	Validates internal controls related to information systems	Establishes and maintains an ISMS

Conclusion

SOC 2 compliance is essential for organizations that handle sensitive data, particularly in the B2B sector. Achieving SOC 2 certification not only demonstrates that a company takes security seriously but also enables it to expand its business by selling to larger, security-conscious clients. SOC 2 is more than just a compliance program; it is a powerful tool for fostering customer trust and enhancing business opportunities.

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FAQ

How does SOC 2 audit flexibility benefit organizations in different industries?

SOC 2 audit provides significant advantages for organizations across different industries due to its customizable framework. SOC 2 allows businesses to select the trust service criteria—such as security, availability, and confidentiality—that best align with their operational needs. This flexibility is particularly beneficial because every organization operates differently, and compliance needs can vary based on industry-specific requirements. For instance, an e-commerce company may prioritize security and availability to ensure uptime and protect customer transactions, while a healthcare provider may focus on confidentiality and processing integrity due to the sensitive nature of patient data. SOC 2’s ability to adapt to these unique needs helps organizations tailor their information security programs, making the audit more relevant and manageable for their specific sector. This adaptability not only simplifies the audit process but also ensures that businesses can meet compliance standards without having to implement unnecessary controls that don’t apply to their operations. Thus, SOC 2’s flexibility makes it a valuable tool for a wide range of industries.

How can a company modify the scope of its SOC 2 audit?

Modifying the scope of a SOC 2 audit is an essential step, particularly when preparing for the audit. The scope defines the information system that will be assessed, including infrastructure, software, people, data, and processes. Before the audit begins, it is crucial to confirm whether this scope still aligns with the company’s current business objectives. If the business has undergone changes, such as adopting new technology or shifting to a different operational process, adjustments to the audit scope may be necessary to ensure it accurately reflects the company’s environment. SOC 2 audits are flexible in that while the criteria set by AICPA remain unchanged, the controls can be customized. If the company has changed how it manages its software development lifecycle (SDLC), for example, it may need to update the controls to reflect its current practices. These changes should be communicated to the auditor to avoid surprises during the audit and ensure that the audit stays relevant to the business needs.

Compliance

DevOps

HIPAA Compliance: How to Prepare for a HIPAA Audit

Roman Burdiuzha

October 2, 2024

The Health Insurance Portability and Accountability Act (HIPAA), enacted by the U.S. Congress in 1996, serves as a crucial legislative framework that ensures the confidentiality, integrity, and availability of individuals' health information. This federal law was established to regulate the privacy and security of Protected Health Information (PHI), emphasizing the responsible handling of patient data across various entities in the healthcare sector. What is PHI (Protected Health Information)? HIPAA's main goal is to keep patients' medical records and personal health details safe from being shared without permission. It sets nationwide rules to make sure that health information stays private, accurate, and accessible only to the right people. These rules apply to health plans, doctors, hospitals, and any businesses that handle patient information. Protected Health Information (PHI) is any health-related data that can be traced back to a specific person. This includes things like medical records, names, social security numbers, and even fingerprints or other biometric data. HIPAA requires that all health information connected to personal details is considered PHI and must be kept secure. The U.S. Department of Health and Human Services (HHS) has defined 18 unique identifiers that classify health information as PHI, including but not limited to: Names Dates (except years) Social security numbers Medical record numbers Email addresses Device identifiers Biometric data (fingerprints, face scans) Who Must Comply with HIPAA? HIPAA compliance is mandatory for entities that handle PHI, including: Healthcare providers: Hospitals, clinics, nursing homes, pharmacies. Health plans: Health insurance companies, Medicare, Medicaid. Health clearinghouses: Organizations that process health data like billing services and data management firms. Business associates: Third-party vendors, including billing companies, consultants, and cloud service providers, who handle PHI on behalf of covered entities. HIPAA compliance extends beyond healthcare providers to include business associates—third-party entities that perform services involving the use or disclosure of Protected Health Information (PHI) on behalf of covered entities like hospitals or clinics. Examples of business associates include: Billing companies Cloud service providers Consultants Transcription services Data storage firms Business associates are required to ensure the same level of protection for PHI as the primary covered entities, such as hospitals and insurance companies. This means they must adhere to HIPAA’s Privacy, Security, and Breach Notification rules. If a breach occurs or there’s non-compliance, business associates face the same penalties, ranging from $50,000 fines per incident to $1.5 million annually. The Three Main Rules of HIPAA HIPAA compliance is governed by three primary rules: Privacy Rule This rule controls how personal health information (PHI) can be used and shared. It focuses on keeping patient information safe from unauthorized access while still allowing healthcare providers to share it when needed for treatment or running their services. It limits who can see a patient’s health information and under what conditions it can be shared, giving patients control over their personal health details. Security Rule This rule is about protecting electronic health information (ePHI). It requires security measures like encryption, access controls, and monitoring logs to keep data safe from breaches. Whether the data is being stored or sent, this rule ensures it is protected. It also requires healthcare organizations to have administrative, physical, and technical safeguards in place to keep electronic health data secure. Breach Notification Rule If there’s a breach involving unsecured health information, this rule requires healthcare providers to notify the affected individuals and, in some cases, the government and media. The individuals must be informed within 60 days if their health information was accessed without permission. If the breach is large, the Department of Health and Human Services (HHS) and the media may also need to be notified. Penalties for Non-Compliance Failing to comply with HIPAA can lead to severe consequences. Financial penalties range from $50,000 per incident to $1.5 million per violation category per year. Persistent violations or multiple breaches can result in multi-million-dollar fines, and in some cases, criminal charges. Even if an organization is found to be compliant today, they may face fines for any previous deficiencies. These penalties can be financially debilitating, highlighting the importance of maintaining a thorough and consistent compliance plan. What Is a HIPAA Audit? A HIPAA audit is an assessment process conducted to verify if a healthcare provider, health plan, or their business associates comply with the required privacy and security standards. These audits are conducted by the Department of Health and Human Services (HHS) Office for Civil Rights (OCR). In recent audits, a company known as FCI Federal was awarded a million-dollar contract to conduct these reviews. What Is Being Audited? During a HIPAA audit, organizations must submit their HIPAA compliance plans. The audits may be desk audits, where organizations have 10-14 days to submit their documentation. Auditors focus on both current and historical compliance efforts, meaning that even if an organization has only recently implemented HIPAA compliance, they could still be held accountable for past deficiencies. Key Areas of Review Compliance Plan: Ensure that your organization has a robust HIPAA compliance plan in place that outlines how PHI (Protected Health Information) is handled. Historical Compliance: Organizations must provide evidence that they have consistently updated their policies and procedures to comply with HIPAA standards over time. This includes documentation of any policy updates and actions taken to rectify past compliance gaps. Implementation and Best Practices HIPAA compliance requires organizations to adopt several best practices, including: Employee Training: All employees handling PHI must be thoroughly trained on HIPAA policies and procedures. Risk Management: Organizations should regularly assess risks to PHI and take necessary steps to mitigate them. Access Control: Only authorized personnel should have access to PHI, ensuring that medical information is protected from unauthorized access. HIPAA compliance checklist HIPAA-Compliance-ChecklistDownload How Gart Solutions can help? Gart Solutions can help organizations with HIPAA audits in several ways by ensuring compliance and improving security in healthcare-related systems. Here’s how: Cloud Infrastructure Design and Compliance Data Encryption Automated Compliance Monitoring Audit Trail Creation Incident Response Automation Risk Assessment and Management Backup and Disaster Recovery Business Associate Agreements (BAA) Gart Solutions can design and implement cloud infrastructure that adheres to HIPAA security and privacy standards. This includes ensuring that the architecture is secure, scalable, and meets the technical safeguards required for protected health information (PHI) handling. One of the core requirements for HIPAA compliance is ensuring that sensitive data, such as PHI, is encrypted both in transit and at rest. Gart Solutions can implement encryption protocols on cloud services, ensuring that all data is protected from unauthorized access. Using DevOps practices, Gart Solutions can automate the monitoring of cloud environments for HIPAA compliance. By setting up automated scans and alert systems, they can ensure that any misconfigurations or potential breaches are identified and resolved in real-time. HIPAA requires that organizations maintain a record of access and activity for all systems handling PHI. Gart Solutions can deploy logging and monitoring tools to ensure a robust audit trail. This makes it easier to demonstrate compliance during an audit. In case of a security incident, a fast and effective response is critical. Gart Solutions can automate incident response procedures, minimizing response time and ensuring that any HIPAA violations are addressed immediately. Gart Solutions can conduct regular risk assessments, helping organizations identify vulnerabilities in their cloud infrastructure. They can then implement remediation plans and continuously monitor the environment to reduce the risk of non-compliance. HIPAA requires that organizations have plans for backup and disaster recovery in place. Gart Solutions can set up automated, secure backups and disaster recovery solutions, ensuring that data is always recoverable and protected from loss. For any cloud services provided to healthcare organizations, a BAA is required to establish responsibilities for HIPAA compliance. Gart Solutions can help navigate the process of drafting and maintaining BAAs with cloud vendors, ensuring proper legal protection and compliance. These services ensure that organizations meet HIPAA requirements while maintaining efficient, secure cloud operations. Conclusion HIPAA serves as a cornerstone of healthcare privacy and security regulations, ensuring that individuals' health data is protected. Healthcare providers, insurance companies, and associated businesses must understand and adhere to HIPAA's rules to avoid heavy penalties and safeguard patient trust.

Compliance

Digital Transformation

Compliance Monitoring: Ensuring Businesses Stay on the Right Side of the Rules

Fedir Kompaniiets

August 29, 2024

Compliance monitoring is the ongoing process of checking that an organization is following all the rules, regulations, and standards that apply to its operations. In simple terms, it's about making sure a company is "playing by the rules" set by governments, industry bodies, or its own policies This practice is critical in several industries, including: Healthcare Finance and banking Pharmaceuticals Energy and utilities Food and beverage manufacturing Environmental services Compliance monitoring helps ensure that an organization follows laws and rules. It helps avoid legal problems and fines, and it builds the organization's reputation and trust with clients and partners. Key Components of Compliance Monitoring Effective compliance monitoring involves several important parts working together. At its core, there's a clear set of rules or standards that a company needs to follow. These could be laws, industry regulations, or even the company's own policies. Visit our compliance audits page to explore different compliance frameworks and regulations in detail. Next comes the crucial step of actually checking compliance. This involves regularly examining the company's activities and comparing them against established rules and regulations. It's essentially a health check-up for the business, ensuring everything is running according to plan. For companies looking to streamline this process, Gart Solutions offers specialized services to help assess regulatory compliance. Our expertise can be particularly valuable in navigating complex regulatory landscapes, providing businesses with peace of mind that they're meeting all necessary standards and requirements. Read more: Gart’s Expertise in ISO 27001 Compliance Empowers Spiral Technology for Seamless Audits and Cloud Migration Good record-keeping is another crucial piece. Companies need to keep detailed notes about what they're doing and how they're following the rules. This helps prove they're on track if anyone asks. There's also the tech side of things. Many companies use special software to help track and manage their compliance efforts. This can make the whole process smoother and more accurate. Read more about RMF (Resource Management Framework) a unified system for monitoring digital solutions for landfills that we developed for our client. Lastly, there's the response plan. This is what the company does if they find they're not following a rule. It might involve fixing the problem, reporting it to the right people, or changing how things are done to prevent it from happening again. Risk Assessment: Finding out where things might go wrong Policies and Procedures: Writing down clear rules for everyone to follow Training: Teaching employees about the rules and why they matter Regular Checks: Looking at work often to make sure rules are being followed Reporting: Keeping track of how well the company is following rules Technology: Using computers and software to help monitor things Updating: Changing the monitoring system when new rules come out Response Plan: Knowing what to do if a rule is broken Documentation: Keeping good records of all compliance activities Leadership Support: Making sure bosses take compliance seriously All these parts work together to create a strong compliance monitoring system, helping companies stay on the right side of the rules and avoid potential problems. Types of Compliance Monitoring Compliance monitoring comes in various forms, each serving a specific purpose in ensuring an organization adheres to relevant rules and regulations. One common type is regulatory compliance monitoring. This focuses on making sure a company follows laws and regulations set by government agencies. For example, a bank might monitor its practices to ensure it complies with anti-money laundering laws. Internal compliance monitoring is another important type. Here, companies check if their employees are following internal policies and procedures. This could involve reviewing expense reports to ensure they match company guidelines, or checking that proper safety protocols are being followed in a manufacturing plant. Industry-specific compliance monitoring is crucial for businesses operating in highly regulated sectors. For instance, healthcare providers must monitor their practices to ensure patient data privacy, while food manufacturers need to check that their production processes meet food safety standards. Environmental compliance monitoring has become increasingly important. Companies, especially those in manufacturing or energy sectors, must track their environmental impact to ensure they're meeting pollution control regulations. Financial compliance monitoring is critical for publicly traded companies. This involves ensuring accurate financial reporting and adhering to accounting standards to maintain investor trust and meet stock exchange requirements. Lastly, there's technology compliance monitoring. With the rise of data protection laws, companies must monitor how they collect, use, and store digital information to protect consumer privacy and prevent data breaches. Each type of compliance monitoring plays a vital role in helping organizations navigate the complex landscape of rules and regulations they face in today's business world. Challenges in Compliance Monitoring One of the biggest challenges is dealing with complex and ever-changing regulations. Laws and industry standards are often intricate, with many details to track. What's more, these rules frequently change, sometimes without much warning. This means companies must constantly update their knowledge and practices to stay compliant. Another major concern is balancing compliance with data privacy and security. In today's digital age, many compliance efforts involve handling sensitive information. Companies need to find ways to monitor and report on their activities without putting private data at risk. This can be especially tricky when dealing with customer information or confidential business data. Resource limitations also pose a significant challenge. Effective compliance monitoring often requires dedicated staff, sophisticated software, and ongoing training. For many businesses, especially smaller ones, finding the budget and personnel for these efforts can be difficult. They must find ways to meet regulatory requirements without breaking the bank or stretching their teams too thin. Need a Compliance Audit? Is your business fully aligned with the latest regulations and standards? At Gart Solutions, we specialize in comprehensive compliance monitoring to keep you on the right side of the rules. Our expert team offers tailored audits and monitoring services across various industries, including healthcare, finance, pharmaceuticals, and more. Ensure your business stays compliant and protected — contact Gart Solutions for a customized compliance audit today!

Compliance

How to Be Prepared for NIS2 Compliance Update? (before October 17, 2024)

Fedir Kompaniiets

August 20, 2024

NIS2 Directive Update Taking Effect in October 2024 The NIS2 Directive is a significant update to the original NIS Directive which was implemented in 2016. It aims to bolster cybersecurity resilience across the European Union (EU) by introducing stricter regulations and expanding its reach. EU member states have until October 17, 2024, to translate the NIS2 Directive into their national laws. This means businesses have just a bit more than 60 days (about 2 months) to ensure compliance. Article 21 has its complete list of policies for the protection of network and information systems, as well as the physical environment of those systems from incidents. Below is the entitlement of the requirements: Article 21 of the NIS2 directive to protect networks, information systems & physical environment from incidents. Why is this Security Update Important for European Businesses? The NIS2 Directive represents a major shift in cybersecurity regulations for European businesses. Here's why it's critical: Fortress Against Rising Cyberattacks Europe is a prime target for cyberattacks, with a documented surge in incidents across critical infrastructure. According to Deloitte, attacks skyrocketed by 45% globally and a staggering 220% within the EU between 2020 and 2021. NIS2 compliance strengthens your organization's online defenses and fosters a collective EU bulwark against emerging threats. Proactive Risk Management and Business Continuity NIS2 mandates proactive risk management strategies to identify and mitigate cyber threats before they disrupt operations. Furthermore, compliance promotes business continuity planning to ensure minimal disruption and maintain customer trust even in a cyberattack. Improved Threat Response and Collaboration The directive fosters better incident reporting, allowing you to notify relevant authorities about security breaches and their potential consequences. This timely information sharing safeguards other organizations and fosters collaboration within the business community to exchange best practices and threat prevention experiences. New Industries Under the NIS2 One of the significant changes in the NIS2 Directive is the expansion of its scope. The updated directive now includes more industries than the original version. Previously, the NIS Directive targeted sectors like energy, transport, banking, and health. NIS2 extends to cover additional industries such as: Food and water supply chains Digital infrastructure Public administration Space industry Waste management This expansion means that more businesses will need to align with the new cybersecurity standards, ensuring a wider net of protection across the EU. Fines & Penalties Non-compliance with NIS2 can lead to significant financial penalties that vary depending on the classification of your organization (essential entity). Here's a breakdown of the potential consequences: Essential Entities Failing to comply can result in fines of up to €10 million, or less, a penalty reaching 2% of your total global annual turnover. That's a significant financial blow that could cripple your business. Important Entities The penalties are still substantial, with fines reaching €7 million or 1.4% of your global annual turnover. Beyond hefty fines, NIS2 also enforces stricter accountability on management. Company leaders can be held personally liable for infringements, facing potential temporary bans and even the suspension of services. This underscores the seriousness with which the EU views cybersecurity and the importance of implementing robust security measures. NIS2 Compliance Directive with Gart: Tips & Recommendations At Gart Solutions, we understand the challenges businesses face in navigating complex regulations like NIS2. Here are some tips to help you achieve compliance: Identify Your Compliance Status The first step is to determine whether your organization falls under the scope of NIS2. We will help you to conduct a thorough assessment of your industry and activities. Perform a Security Risk Assessment Identification and evaluation of potential cybersecurity risks is a must. Gart can manage this journey within your organization. Develop a Cybersecurity Strategy We will help to evaluate your security posture and design a cybersecurity strategy that addresses the risk management profile. Invest in Employee Training As Gart is an IT Consulting provider — we also dedicate our efforts to educate your employees on cybersecurity best practices to prevent social engineering attacks and phishing attempts. Seek Expert Guidance Partnering with a trusted cybersecurity solutions provider like Gart Solutions can ensure you have the resources and expertise necessary to achieve and maintain NIS2 compliance. Contact us for a Free Consultation. Download our Free Checklist See how we can help to comply with the latest NIS2 requirements Download NIS2-Compliance-Checklist-A-Comprehensive-Guide-to-Audit_Free-PDFDownload Choosing the EU Cloud Solutions Provider: What is The Way to Be Prepared for the Update? Choosing the EU cloud provider is one of the options to be prepared for the NIS2 compliance update. Gart Solutions, together with our partner — vBoxx, a renowned EU cloud solutions provider, offers a range of managed hosting and cloud server services that can significantly support businesses in their digital transformation journey. vBoxx is an expert in the data journey part of NIS2 and has outlined how to simplify your data security compliance: 1. Understanding the NIS2 Directive The NIS2 Directive represents a significant evolution in EU cybersecurity regulation, broadening the scope of compliance requirements to include a wider array of sectors. This directive underscores the necessity of not only securing data but also understanding its entire journey. Organizations must be vigilant about tracking their data flow to mitigate risks and meet the stringent new standards imposed by NIS2. 2. Comprehensive Data Tracking Compliance with NIS2 requires an in-depth understanding of where and how data is processed, stored, and transferred. This involves documentation of every stage of the data lifecycle — from creation and processing to storage and eventual deletion. By mapping out the data journey, organizations can better identify vulnerabilities and ensure that all parties involved in data handling adhere to high security standards. 3. The Challenge of Sub-processors One of the most complex challenges introduced by NIS2 is the need for organizations to maintain visibility over all sub-processors involved in data processing. Each sub-processor, regardless of their role, must meet the same rigorous cybersecurity standards. This requires thorough vetting and ongoing monitoring to ensure compliance, making it critical for businesses to establish strong relationships and clear communication channels with their sub-processors. 4. Strategic Shifts in the Market In response to NIS2, many businesses are re-evaluating their reliance on third-party sub-processors, especially those located outside the EU. By consolidating data operations within the EU, organizations can better manage compliance and reduce the risk of data breaches. This trend towards localized data handling is reshaping the market, as companies seek to simplify their data ecosystems and enhance security. 5. Practical Steps for Compliance To align with NIS2, businesses must take proactive measures, such as engaging closely with their service providers, conducting comprehensive risk assessments, and considering a shift to EU-based data centers and services. These steps not only facilitate compliance but also strengthen the overall cybersecurity posture, ensuring that the organization is well-prepared to meet current and future regulatory demands. How Not to Repeat Mistakes: Case of Microsoft If you say, we are using public data providers, there’s still are pitfalls we have to consider. Let’s take, for example, Microsoft. Microsoft's products continue to be widely used, but they present significant challenges in transparency and data security. At the time of writing, Microsoft lists 47 subprocessors and 36 data centers, but details on their operations and data handling are unclear. This is concerning given Microsoft's ongoing GDPR violations and multiple security breaches last year. Moreover, the global spread of subprocessors, often linked to parent companies in various countries, adds complexity and potential security risks, making it difficult for companies to verify compliance and data safety. Learn more about Microsoft’s Data Practices and numerous DDoS attacks they responded to. This is a good case of how to not repeat their mistakes. Final words Prepare your business for the NIS2 compliance update with the expert guidance of Gart Solutions and our partner — vBoxx. Download our Free Checklist — a comprehensive guide to the NIS2 audit, and ensure your organization is ready for the upcoming changes. Partner with Gart Solutions and vBoxx — overcome the security challenges and align with NIS2 in this ever-evolving cybersecurity landscape. Wanna know how? Contact us. Schedule a Free Consultation See how we can help to overcome the challenges of NIS2 compliance. Contact us

What is SOC 2?

Trust Services Criteria

Pre-Audit Preparations

SOC 2 Audit Process

Critical Controls for SOC 2 Compliance

Post-Audit Steps

SOC 2 Audit Checklist

Human Factors in SOC 2 Compliance

SOC 1 vs. SOC 2

Key differences between SOC 2 and ISO 27001

Conclusion

FAQ

How does SOC 2 audit flexibility benefit organizations in different industries?

How can a company modify the scope of its SOC 2 audit?

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How to Be Prepared for NIS2 Compliance Update? (before October 17, 2024)

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