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A check on tech: The rise of SOC reporting
May 24, 2023
Authored by RSM Canada LLP
Joel A. Humphrey, CPA, CA shared this article
E-BOOK | May 24, 2023
Is your organization receiving more and more requests for Systems and Organizational Controls (SOC) reports? Our growing dependence on technology, automation and outsourced service providers, combined with cyberthreats, supply chain issues, governance and data privacy, all mean your business will increasingly need to prove you have the controls in place to reduce digital risk.
Conducting thorough SOC reporting can allow you to proactively address these requests, paving the way for new partnerships and growth. But first, you need to understand what SOC reporting is, how it works and what to ask of third-party providers before you sign a contract.
73%
of respondents dealt with phishing attacks.
2022 Statista survey
2x
Account compromise attacks nearly doubled in 2022 compared to 2020
2022 Statista survey
What are SOC reports?
Although not yet required by law, both private and public entities are frequently interested in the behind-the-scenes details a SOC report provides. SOC reports, designed by the American Institute of CPAs (AICPA), provide transparency and insight into how companies operate and maintain their control environment. Validated by a third-party, SOC reports evaluate the infrastructure, software, people, procedures and data controls a company has in place.
Benefits of SOC reporting
Companies that outsource key business or technology processes are inundated with requests from customers, regulators and stakeholders about how vendors and service providers are managing risks. They spend massive amounts of time and resources responding to these questionnaires and associated audits. SOC reports can reduce or eliminate the time spent answering customer questionnaires about security and controls. They also can alleviate the stress of audits performed by customers, regulators and third parties.
The SOC reporting process
- Phase 1: Readiness
- Phase 2: Remediation
- Phase 3: Attestation and SOC report
Understand why your business needs SOC reports, explore what the SOC reporting process looks like and arm yourself with six key questions to ask third-party SOC report providers in this e-book.
The global cybersecurity insurance market, which was $7.6 billion in 2021, will grow from $11.9 billion in 2022 to $29.2 billion by 2027.
2022 ReportLinker study
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Source: RSM Canada
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