Which Trust Services Criteria Of SOC 2 Apply To Your Business?

May 15, 2023by Maya G

Introduction

One of the key components of a SOC 2 report is the Trust Services Criteria, which are standards for system controls related to security, availability, processing integrity, confidentiality, and privacy. These criteria are established by the American Institute of Certified Public Accountants (AICPA) and are used to evaluate the effectiveness of controls in place to protect client data and ensure the reliability of the services provided. Service organizations must undergo an audit by a third-party CPA firm to assess their compliance with the Trust Services Criteria in SOC 2. By demonstrating adherence to these criteria, organizations can assure their clients that their systems are secure, reliable, and have adequate measures in place to protect sensitive information.
Trust Services Criteria in SOC 2

What Are Trust Services Criteria In SOC 2?

Here are the Five Trust Services Criteria in SOC 2:

1. Security: The Security criterion ensures that the system is protected against unauthorized access (both physical and logical).
  • Essential Controls: Implementation of firewalls, intrusion detection systems, and other protective measures fall under this criterion to prevent data breaches.
2. Availability: This criterion addresses whether the system is available for operation and use as committed or agreed.
  • Key Measures: Organizations must ensure that they have effective disaster recovery plans, network redundancy, and operational maintenance schedules to service their clients without unnecessary downtime.
3. Processing Integrity: Processing Integrity ensures that system processing is complete, valid, accurate, timely, and authorized.
  • Control Practices: Organizations implement checks and balances, such as data validation processes and monitoring to maintain the integrity of the data being processed.
4. Confidentiality: The Confidentiality criterion relates to the protection of information designated as confidential per user agreements or applicable regulations.
  • Measures for Protection: Organizations utilize encryption, access controls, and classified data handling procedures to ensure sensitive information is accessed only by authorized individuals.
5. Privacy: This criterion focuses on the protection of personal information collected, used, retained, disclosed, and disposed of in conformity with privacy laws and regulations.
  • Compliance Actions: Companies must develop privacy policies, consent protocols, and user data management strategies that conform to relevant regulations, such as GDPR or CCPA.

SOC 2 Implementation Toolkit

Steps to Determine Which Trust Service Criteria In SOC 2 Apply to Your Business

1. Understand the Trust Service Criteria: Before diving into the specifics, familiarize yourself with the five Trust Service Criteria:

  • Security: Protection of the system against unauthorized access.
  • Availability: System is accessible and operable as committed or agreed.
  • Processing Integrity: System processing is complete, valid, accurate, timely, and authorized.
  • Confidentiality: Information designated as confidential is protected.
  • Privacy: Personal information is collected, used, retained, disclosed, and disposed of in conformity with the privacy notice.

2. Assess Your Business Model: Evaluate your business's operations, including:

  • The nature of your services or products.
  • The data you handle (e.g., customer data, financial information).
  • Industry regulatory requirements that may dictate certain criteria that must be met.

3. Identify Stakeholder Requirements: Engage with your stakeholders to understand their expectations.

This can include:

  • Customers who may have specific TSC requirements.
  • Partners and vendors who may require adherence to certain criteria.
  • Regulatory bodies that impose industry standards.

4. Conduct a Risk Assessment:Perform a comprehensive risk assessment to identify vulnerabilities in your systems. Following this assessment, determine:

  • Which TSCs are most relevant based on the risks identified.
  • Areas in need of enhancement to mitigate risks associated with data protection.

5. Evaluate Existing Policies and Controls: Review your current policies, controls, and practices to assess:

  • Compliance levels with relevant TSCs.
  • Gaps that need to be addressed in your controls surrounding data security, processing, confidentiality, and availability.

6. Consult Industry Benchmarks: Research industry benchmarks and standards to:

  • Understand best practices in your sector.
  • Identify which TSCs are typically prioritized by similar businesses.

7. Align with Business Objectives: Ensure that the selected Trust Service Criteria align with your business goals and values.

This step can involve:

  • Creating a business case for the chosen criteria.
  • Deciding on which criteria help fulfill your mission and improve customer trust.

Mapping SOC 2 Trust Criteria To Common Industries

Mapping these criteria to various industries helps organizations understand how they can align their operations with customer expectations and regulatory requirements.

1. Security in Healthcare

  • Confidentiality of Patient Data: Safeguarding sensitive personal data (PHI) through encryption and access controls.
  • Incident Response: Implementing a robust incident response plan to manage data breaches effectively.

2. Availability in Financial Services

  • Uptime Guarantees: Establishing systems that ensure high availability for critical financial operations, such as trading platforms or online banking services.
  • Disaster Recovery Plans: Regular testing of backup systems and recovery procedures to restore operations promptly.

3. Processing Integrity in E-commerce

  • Transaction Accuracy: Ensuring that all online transactions are processed accurately without errors.
  • Quality Control: Implementing checks to prevent fraud and ensure proper fulfillment of orders.

4. Confidentiality in Education

  • Student Data Protection: Protecting sensitive student information through secure storage and controlled access.
  • Compliance with FERPA: Adhering to the Family Educational Rights and Privacy Act to manage student records securely.

5. Privacy in Technology Services

  • User Consent and Data Sharing: Clearly outlining data usage policies and obtaining user consent for data processing.
  • Regular Audits: Conducting periodic privacy assessments to ensure compliance with GDPR and other privacy regulations.

Conclusion

The Trust Services Criteria of SOC 2 that apply to your business depend on the nature of your business and the services you provide. The five criteria are security, availability, processing integrity, confidentiality, and privacy. Security is a foundational requirement for all businesses, while availability is crucial for businesses that rely on continuous service availability. Processing integrity applies to businesses that process data accurately and in a timely manner.

SOC 2 Implementation Toolkit