Tech

What Is Soc-2 & Why Is It Important For Your Investor Relations Website

Investor Relations Website

Published on June 25th, 2022

With the constant threat of data breaches, IR website security isn’t something you can skimp on nowadays.

According to the Boston Consulting Group, cyber criminals are 300 times as likely to attack financial services than any other industry. And there’s little wonder why — investor relations intelligence contains confidential financial data, so your servers represent some of the biggest bounties online for fraudsters today.

With these odds, your team will likely face a malicious attack at some point, if not today, then sometime soon.

However, you can ensure you survive these attacks without leaking information with the right auditing procedures in place. Q4 join the top IR firms relying on SOC-2 to confirm their security meets international standards.

What Is SOC-2?

SOC-2 — short for System and Organization Control 2— is an auditing procedure performed by third-party auditors that assess the security systems of SaaS that store client data in the cloud, like Q4 and other modern IR services.

Their audits ensure IR firms meet the appropriate security standards when build investor relations websites and CRM tools.

Developed by the American Institute of Certified public Accountants, SOC-2 is the latest in a long line of procedures dating back to the early 1970s. In its most recent iteration, SOC-2 focuses on digital measures to protect against modern data breaches. It provides a framework for safeguarding data.

SOC-2 Certification And Its 5 Guiding Principles Of Trust

SOC-2 certification proves that a SaaS adopts its best practices for managing data. Before an IR website provider can become SOC-2 certified, it must show it complies with the auditing procedure’s five trust principles.

  1. Security: This principle refers to the actual security tools that a company uses to prevent cyberattacks, including access control, firewalls, encryption, and two-factor authentication.
  2. Availability: As a measure of how easily the software can be monitored and maintained, availability gauges whether security tools achieve their purpose at a minimum network performance.
  3. Processing Integrity: By processing the integrity of an IR website’s security, this best practice is a form of quality assurance that catches errors or issues in the processing operations.
  4. Confidentiality: Encryption is under its second review under this next criterium, as confidentiality addresses how SaaS companies safeguard classified information. In others, how a company secures data that only specific people or organizations can access.
  5. Privacy: The last trust principle reviews the way a system collects, uses, stores, shares, and disposes of personal information. This criterium compares these methods against the company’s privacy policy, the AICPA’s generally accepted privacy principles (GAPP), and country-wide privacy laws

Why Is SOC-2 Compliance Important For Your IR Website

Simply put, a SOC-2 certification provides peace of mind. As a third-party audit, you can trust there aren’t any biases when reviewing the success of data encryption and risk management processes. Any IR firm boasting this accreditation provides 24/7 monitoring while following best practices established by the security experts.

Although entirely voluntary, SOC-2 compliance and certification is now an industry standard for investor relations software. Make sure your IR tools provider can guarantee this level of security to protect your data from external threats.