A service organization control audit, or SOC 2 audit, provides a report on an organization’s security controls. There are two types of SOC 2 reports, Type I and Type II, which we have touched on in other posts. Here we’ll discuss why B2B tech companies of all sizes are pursuing SOC 2 audits more than ever before.
On the surface, a SOC 2 certification may sound like just another flashy security badge or boring report that management reads. However, having a successful SOC 2 has been proven to be an asset, supporting company growth by helping organizations land enterprise contracts, grow revenue, and increase their market share.
Land Enterprise Contracts
The secret to landing bigger business partnerships is not having buckets of funds and a bigger workforce than your competitors. It revolves around earning the trust of prospective clients. Trust in your people, processes, and technology. Sure, you can hire a subject matter expert to conduct internal controls auditing, but this doesn’t really provide prospective clients with the comfort that their data is in safe hands. Moreover, this self-attestation may unintentionally contain biases of the auditor or business.
Enterprises additionally are risk-centric. Startups and small businesses often have minimal to show for in the business world. Big businesses understand that protecting their brand reputation and public image entails a rigorous risk management program. In many cases, the risk factor is so important it supersedes the contract price negotiation. Is your company fully prepared to answer detailed cybersecurity questionnaires expecting large enterprise type security measures?
There is perhaps no better way to demonstrate credibility and the security posture of a company than attaining a true 3rd party attestation, a SOC 2 examination report. Yeah, we know what you might be thinking- “SOC 2 is just another sticker to put on our business portfolio.” However, working with an experienced cybersecurity firm to attain SOC 2 alignment is one of the most valuable undertakings your business can pursue. This is because many small businesses lack a high-level strategy for their cybersecurity needs. This subsequently, means enterprises are less likely to engage with an organization who A- has few security controls put into place, OR B- doesn’t take the topic seriously. Both of these worries are eliminated in a prospect’s mind with a SOC 2 report.
They say money runs the world, and this is true. With breaches occurring around the clock there are millions of dollars getting thrown into cybersecurity. Unfortunately, far too much of this is post-incident. For instance, capital must be spent to cover a PHI data lawsuit or to rebuild after a ransomware attack. These costs quickly rack up for organizations who fall victim to a threat actor and have little to no cybersecurity controls.
What if there was a way to protect your organization against a data breach while also increase your revenue? At Silent Sector, we believe having security at the forefront of your business can enable you to establish a repertoire of proactive security that you can immediately leverage as a competitive advantage, and ultimately grow your revenue. This may seem too good to be true, but we have seen countless B2B tech companies leverage SOC 2 audits and make a large multiple on their investment. We believe this is in part because businesses that take cybersecurity seriously are more likely to land more contracts. Unlike their competitors, they think five steps ahead and not one.
After all, what is the first thing an enterprise looks when evaluation a technology service provider or solution after they understand the features and capability? They look at the cybersecurity posture to ensure they’re not taking on unnecessary risk.
Increase Market Share
News spreads fast when an organization flops. It has been 7 years since the infamous Target breach and yet Target is still regularly referenced as a “what happens when you don’t have adequate security controls.” On the bright side, quick news spreading is not always negative. In many cases, it can help organizations who specialize and excel at a service to grow their customer base. For example, contractors who complete on time and budget deliverables are quickly shared amongst their respective industries as being the “go-to,” as a result they quickly absorb a great deal of the industry clientele.
A challenge for organizations who provide services but want to gain market popularity is how to position themselves as a secure organization? This is particularly pertinent as most vendors don’t have the resources for a complete in-house security department and consequently are a lucrative target for cybercriminals. Silent Sector believes that instead of buying flashy security tools, organizations are better off leveraging their existing technologies and fine-tune them for their environment. Then after this has been completed, seek a SOC 2 audit to formalize the technological security. A SOC 2 report attests that your organization has executed controls to ensure data confidentiality, integrity, and availability are maintained.
SOC 2 audits are growing in popularity because they endorse an organization's information security controls through requiring an endorsement from a reputable auditor, much like SOX (Sarbanes-Oxley) helps identify and protect against accounting errors. Customers and prospective clients are very keen on knowing their data is secure. A SOC 2 report will enable your organization to boost the credibility of its security measures without giving a false claim. Satisfied clients are typically very happy to share their experience with business partners. Moreover, testimonials from even a handful of industry leaders or well-known companies can absolutely pave the way to an increased market share for your company.
A SOC report ultimately sanctions your organization as widely trusted so that you can focus on profitability and growth. The big picture is that adhering to SOC 2 requirements demonstrates a forward-thinking and growth trajectory that enables organizations of all sizes to land enterprise contracts, grow revenue, and increase their market share.
Interested in hearing how the SOC 2 audit process works, getting a SOC 2 Readiness Assessment, or stepping right into a formal audit? Schedule a meeting with Silent Sector’s experts to learn more.