Most organizations outsource some aspect of their business to vendors, whether it’s to perform a specific, integral task or replace an entire business unit. Vendors can be in roles like customer support, financial technology, record storage, software development, or claims processing. Using vendors can further an organization’s business objectives, enable them to function more effectively, and may be more cost-efficient. With all these opportunities, organizations must remain aware of the risks vendors carry with them.
As a result of the additional risks that vendors bring, more and more organizations are asking vendors to receive SOC 1 or SOC 2 attestations. But, when you do receive a SOC 1 or SOC 2 report from a carved-out vendor, do you know how to read it? Which areas do you focus on and what do the results mean? SOC 1 and SOC 2 reports are lengthy and complex, but incredibly important in understanding the risks posed to your organization. Let’s take a look at some key components of SOC 1 and SOC 2 reports that will help you analyze the security of your vendors.