business Should Your Cloud Service Provider have a SOC Report? May 20, 2024 The right cloud service provider can make all the difference in your business’ security posture. But how can you be confident with their controls and operating effectiveness? Ask them for their SOC report as part of your vendor assessment process. Read on. According to a 2023 Cloud Security Report sponsored by ISC2, cloud organizations have almost a 1 in 4 chance of suffering a public cloud-related security breach. Choosing the right cloud provider can help mitigate that risk…but be sure your due diligence includes asking potential cloud providers whether they have undergone a SOC (SOC 1 or SOC 2) examination. Here’s what you should know. How do cloud security breaches happen? Cloud security breaches arise when an unauthorized person gains access to confidential data and sensitive personal information in the cloud. These breaches happen due to a variety of circumstances including: Unrestricted password & file sharingLeaving devices open in publicAPI (Application Programming Interface) hacking How can a SOC report help you in selecting and monitoring your cloud provider? A SOC report provides an independent auditor’s opinion regarding the design of controls and their operating effectiveness (included in a Type 2 examination) at a service organization/cloud provider. Read more about SOC audits here: KLR Blog: What is a SOC Audit? “A SOC report is a crucial factor to consider when evaluating cloud providers for your organization’s needs. Having a SOC audit performed shows that the provider is committed to complying with important security frameworks.” - Daniel M. Andrea, CPA, CITP, CISA 3 Benefits of utilizing SOC certified cloud providers More security assurance: Having a SOC report demonstrates a commitment to rigorous security and privacy standards set by the AICPA. This assurance reduces the risk of data breaches and instills confidence in users regarding the protection of their sensitive information.Streamlined Vendor Evaluation: A SOC report provides a standardized framework for evaluating a cloud provider’s security practices, which streamlines the vendor selection process for organizations. Knowing that the cloud provider has already undergone thorough scrutiny and meets industry-recognized security standards (through the SOC audit) makes the selection process so much easier. Compliance Readiness: Robust controls for information security and privacy (provided by a SOC report) make it easier for organizations to demonstrate compliance with regulatory requirements such as GDPR or HIPAA.
