Understanding the cost for the SOC 2 report
It’s pretty fair to say that various organizations have serious problems when it comes to data security. This is especially the case in situations where outsourcing of tasks is heavily practiced. It is for this reason, according to UnderDefense, businesses are trying to find security service providers that offer proper protection against risks such as data theft and malware exposure. This makes knowing the cost for SOC 2 report services so important.
As you would think, the cost for SOC 2 report services warrants the protection you get as it is one of the best processes out there. So, why are the prices for this security provision what they are and how do you justify them? Let’s read on to find out.
What is SOC 2?
Before discussing the total cost for SOC 2 report services as well as why it makes sense, you have to understand exactly what SOC 2 is and how it works. SOC 2 is a process that audits companies you’re currently working with, ensuring that they protect all data they require to operate. In doing so, you and your clients are protected from security threats.
If you’re considering a third party to work with, they would have to meet the SOC 2 requirements before you go that route. Their compliance with the audit means that every aspect of their data handling has to be inspected. Five points of data processing in particular are looked at to see if a partnership is risky and they are as follows:
The audit will look at how the potential vendor will handle each data protection pillar, after which the report will be sent to you. Said report comes in two forms which include:
- Type I, which presents the general outlook of the potential vendor and their ability to handle data.
- Type II, which takes an in-depth look into the mechanisms put in place to handle each of the five requirements as well as their efficacy.
The importance of the audits
It’s important to note that while compliance is not always a requirement, hence why some may not want to spend on it, SOC 2 services are highly advantageous according to UnderDefense. The key benefits of having the audit conducted can be applied to you and your customers in some rather significant ways. Customers knowing their security is safe is the most obvious advantage. The effect of this is the build-up of trust, which leads to more customers flocking to use your services.
On your part, it gives you an edge over your rivals by assuring customers that their data is protected. It also relieves you of the burden of conducting such investigations on your own, as the SOC 2 audit is thorough and accurate.
What’s with the cost?
The cost for SOC 2 report services, interestingly enough, is another advantage of ensuring third-party compliance. Everything you’ve read so far has given you a slight glimpse into understanding the reasoning behind the prices you’re going to see. However, the following will show you why it’s not only justified but the best you could go for.
The two types
Several things determine the price of receiving a report and they range from the complexity of the audit to the size of the considered third part, which may affect the time spent compiling the report. The two biggest factors, however, are the types of reports that are requested. You already know the two types as they are listed above, so you should probably look at how they could be priced:
Just by looking at the description of the report, a type I version of the SOC 2 report is pretty general and doesn’t look at the details as closely as their counterpart. As such, they are much more affordable, usually ranging between $10,000 and $20,000.
This usually begins with an initial payment of about half of the $10,000 average. This often excludes certain key features such as having a finished report as well as using trained personnel to look at specific methods of data handling.
While type I will give you fairly useful information, none of what is provided will be worth much in terms of satisfying customer confidence. As such the more detailed type II audit is preferred.
This audit is far more thorough and as such costs significantly more. That said, it’s pretty easy to see where every cent is spent by simply analyzing each step of the process.
It all begins with initial prep, which is done to gather what’s necessary for the process to begin. This all depends on how many of the five key pillars of trust are assessed. This entire bit can cost as little as $15,000 and as much as $85,000, which can be adjusted depending on what you want to know.
The prep often means acquiring the right equipment and this may require training personnel to use it efficiently. This can cost extra and if the company used to train personnel is called in to oversee the work or find looked-over information, a bill of $85,000 can be amassed. This is really if they do the entire process themselves.
When the entire process is complete and other expenses such as legal fees and future maintenance are looked at, the price can be as much as $100,000. This price can be reduced if certain steps are deliberately overlooked, which isn’t advisable.
Another justification regarding the cost for SOC 2 report services in comparison to rivals is flexibility when it comes to fitting around an organization’s approach to data handling. This makes its lower cost quite remarkable as it isn’t as expensive as other, more rigid varieties.
Even if it were as expensive, it would be difficult to argue and dismiss the cost for SOC 2 report services as they typically meet the standard and go beyond them. The benefits alone make use of this tool something worth considering and hopefully knowing the reasons for the costs has given you greater clarity. SOC 2 may seem expensive, but it’s affordable in the long run.