SOC 2+ reports have become increasingly crucial for organizations aiming to demonstrate their commitment to security and compliance. While the standard SOC 2 framework provides a solid foundation, many industries require additional criteria to address their unique risks and regulatory requirements. This article explores the concept of industry-specific criteria in SOC 2+ reports and how they enhance the value of these assessments for specialized sectors.

Understanding industry-specific SOC 2+ criteria

Industry-specific criteria in SOC 2+ reports are tailored requirements that complement the standard Trust Services Criteria (TSC) used in traditional SOC 2 audits. These additional criteria are designed to address the unique challenges, risks, and regulatory obligations faced by organizations in particular sectors.

By incorporating industry-specific criteria, SOC 2+ reports provide a more comprehensive and relevant assessment of an organization's controls and processes. This approach allows businesses to demonstrate compliance with both general security principles and sector-specific requirements in a single report.

The development of industry-specific criteria often involves collaboration between industry experts, regulatory bodies, and auditing professionals. This ensures that the additional criteria accurately reflect the current state of risks and compliance obligations within each sector.

Benefits of incorporating industry-specific criteria

1. Enhanced Relevance: By addressing sector-specific concerns, SOC 2+ reports with industry-specific criteria offer more meaningful insights to stakeholders within that particular industry. This increased relevance can lead to greater confidence in the organization's security and compliance posture.
2. Regulatory Alignment: Many industries are subject to specific regulations and standards. Incorporating industry-specific criteria into SOC 2+ reports helps organizations demonstrate compliance with these requirements more effectively, potentially streamlining regulatory audits and reducing compliance-related overhead.
3. Competitive Advantage: Organizations that undergo SOC 2+ audits with industry-specific criteria can differentiate themselves in the market. This comprehensive approach to security and compliance can be a valuable selling point when engaging with clients or partners who prioritize robust risk management practices.

Examples of industry-specific SOC 2+ criteria

• Healthcare: For organizations handling protected health information (PHI), industry-specific criteria might include detailed requirements for HIPAA compliance, such as specific access controls, encryption standards, and breach notification procedures.
• Financial Services: Banks and financial institutions may incorporate criteria related to payment card industry (PCI) standards, anti-money laundering (AML) controls, or specific requirements set by financial regulators in their jurisdictions.
• Cloud Service Providers: Additional criteria for cloud providers might focus on data residency requirements, multi-tenancy controls, or specific service level agreement (SLA) metrics relevant to cloud infrastructure and services.

Implementing industry-specific criteria in SOC 2+ audits

The process of incorporating industry-specific criteria into a SOC 2+ audit requires careful planning and collaboration between the organization, its auditor, and industry experts. Key steps in this process include:

1. Identifying Relevant Criteria: Work with auditors and industry specialists to determine which additional criteria are most relevant to your organization's operations and risk profile.
2. Gap Analysis: Conduct a thorough assessment of existing controls and processes to identify areas that may require enhancement to meet the industry-specific criteria.
3. Implementation and Documentation: Develop and implement new controls or modify existing ones to address the additional criteria. Ensure that all processes are well-documented to support the audit process.

By following these steps, organizations can effectively integrate industry-specific criteria into their SOC 2+ audits, resulting in a more comprehensive and valuable assessment of their security and compliance posture.

Conclusion

Industry-specific criteria in SOC 2+ reports represent a significant advancement in the field of security and compliance assessments. By tailoring the audit process to address sector-specific risks and requirements, organizations can provide stakeholders with a more accurate and relevant picture of their control environment. As industries continue to evolve and face new challenges, the incorporation of specialized criteria in SOC 2+ reports will likely become increasingly important for demonstrating robust security and compliance practices.

This article was prepared in cooperation with partner ITGRC Advisory Ltd.