SOC 2 compliance is related to the security, availability, confidentiality, and integrity of data services provided by third-party vendors. These service providers work with big clients. Their job is to take care of data and for this reason, clients want the service providers to follow all necessary rules and regulations formed to improve data safety.
Regulatory compliance is necessary for the following businesses
1. Software as a Service (SaaS) Providers
Saas services involve delivering software applications over the web and for this reason, they need to store and process large amounts of data that could be crucial for their clients. Regulatory compliance is mandatory for them because it is the only way to assure clients of reliable services. Also, clients expect complete fulfillment of rules and regulations.
2. Data Centers and Hosting Providers
Data and hosting services require the storage of vast amounts of data which increases the risk of data breach. It is for this reason that SOC 2 compliance has been made mandatory for data companies. They have to fulfill all international standards related to data safety. Without regulatory compliance, they won’t get any business.
3. Financial Institutions
Financial institutions such as banks, credit and loan companies, and financial advisors save critical information related to the financial profiles of their clients. This information shouldn’t land in the hands of criminals as they can misuse the info to rob people. Regulatory compliance is the only way for banks and other financial institutions to demonstrate their commitment to data safety.
4. Technology Companies
Companies providing IT services like software development, consulting, and managed services need to be careful about their data handling. They use and deal with sensitive data. But they can make sure that they keep things simple and safe with the help of SOC 2 compliance. Without regulatory compliance, they could attract heavy penalties.
5. E-commerce Platforms
E-commerce platforms provide online shopping services. They provide the liberty to shop online from the comfort of your mobile. But they take care utmost care of your data. When you transact business with an e-commerce platform, you share sensitive data with that platform. In other words, you rely on the safety standards of the e-commerce site.
6. Cloud Service Providers
IT companies delivering computing resources over the cloud have to get SOC 2 compliance to ensure the safety of data. They deal with sensitive data and if they don’t comply with necessary rules and regulations, they could lose data and land in trouble. Also, they won’t get business without regulatory compliance.
