Obtaining a SOC 2 report requires an investment of both time and money for a service organization and, at some point, might seem like more work than it’s worth. However, the advantages to obtaining a SOC 2 report far outweigh the initial investment. The following are a few benefits:
- Obtain a competitive advantage by applying best practice advice when implementing and reporting on controls.
- User entities that are concerned with security, confidentiality, and privacy are more likely to partner with service organizations that are audited by an independent auditor and can provide a SOC 2 report; alternatively, those service organizations who cannot provide a SOC 2 report are likely to be at a significant competitive disadvantage when finding new and maintaining current clients.
- Since most companies utilize IT systems to perform critical operations, they need to be sure that their service organizations have procedures and controls in place to provide constant and reliable services.
- Management can gain a better understanding of how risk is addressed in similar organizations in the same industry.
- Steer the organization’s operations to offer better services by better understanding the risk faced by clients.