As we discussed in our recent blog, Capital Markets firms are increasingly focused on making data protection a top priority. They have recognised increased reliance on technology to drive innovation and efficiency comes hand in hand with escalating cybersecurity threats. In the European Union (EU), stringent data protection regulations like the General Data Protection Regulation (GDPR) and the Digital Operational Resilience Act (DORA) set the benchmark for safeguarding sensitive information. Central to meeting these regulations is adherence to a known framework such as SOC2.
SOC2, or Service Organization Control 2, is a framework designed by the American Institute of Certified Public Accountants (AICPA) to ensure that service providers securely manage data to protect the interests and privacy of their clients. While SOC2 originated in the United States, its global relevance has grown, especially with the increasingly interconnected nature of businesses and the borderless digital environment.
One of the primary reasons SOC2 is gaining prominence is its alignment with the core principles of EU regulations, particularly GDPR. SOC2, with its focus on data security and privacy controls, serves as a complementary framework that aids organizations in meeting GDPR’s stringent standards.
The SOC2 framework consists of five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy. Each criterion addresses specific aspects of data management and protection, making SOC2 a comprehensive approach to cybersecurity.
The Security criterion, for example, emphasizes the need for robust access controls, encryption, and monitoring to safeguard sensitive data. In the context of GDPR, this aligns seamlessly with the regulation’s requirement for implementing appropriate technical and organizational measures to ensure a level of security appropriate to the risk.
At KRM22, we have taken our steps to meet our obligations to data protection since foundation. We appointed a DPO to give our customers confidence that we address GDPR in an appropriate manner, and have a CISO to manage information security as a whole. Alongside this, we built our processes to be SOC2 compliant from day one. This culminated in us achieving our first successful audit three years ago. This month we have completed our 2022/23 audit, and have passed again.
Not only do we give cybersecurity the respect it deserves, but we practice what we preach. We use our Risk Cockpit software to manage our entire SOC2 audit process. By tracking regular tasks and processes in the Risk Cockpit, we are able to extract evidence for our auditors simply and quickly. This year, this has led to us not receiving any clarification requests, a first for our audit process. Our auditors have commented at how much they appreciate this level of accuracy and tracking.
In conclusion, as organizations navigate the intricate landscape of cybersecurity and EU regulations, SOC2 emerges as a beacon of assurance and compliance. KRM22’s Risk Cockpit has been built to assist firms manage these process. Talk to us about how we can help you with your SOC2 and other framework management.