Data privacy and security are at the forefront of concerns for most organizations. For mid-market and enterprise companies, as well as those in the Private Equity space, maintaining these protections is crucial due to the vast amounts of sensitive data they manage. Information security can be especially complex to implement and monitor across portfolio companies and sponsors. With the increasing complexity of data environments and cyber threats, safeguarding sensitive information has never been more critical. According to Wipfil’s The Outsourcing Report 2024, when it comes to outsourcing to a vendor or professional services firm, 84% of respondents said data privacy and security was a factor. At E78, we understand the gravity of this responsibility. Our recent achievement of SOC 2 compliance underscores our commitment to providing clients with the highest level of data security and privacy.
Why Data Security Matters
Organizations, from SMBs to enterprises and alternative investment firms, handle large volumes of confidential data, including financial records and operational strategies. A breach not only poses a direct threat to this information but can also damage trust and result in significant financial and reputational loss. This is why SOC 2 compliance is critical. Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 sets rigorous standards for managing customer data based on principles of security, availability, processing integrity, confidentiality, and privacy.
By achieving SOC 2 compliance, E78 assures our clients that we maintain stringent controls over their data, actively reducing the risk of security breaches. This level of assurance is not just about meeting regulatory requirements; it’s about building and maintaining trust with our clients in every interaction.
Key Lessons from a SOC 2 Compliance Journey
The path to SOC 2 compliance is both challenging and rewarding. Here are three primary factors that contribute to a successful accreditation that will guide your business:
- Executive Leadership Support
For a project of this scale, backing from the Executive Leadership Team (ELT) is essential. Stakeholders and decision makers should be fully committed to the process, prioritizing data security across all departments. This support facilitates prompt cooperation and resource allocation. SOC 2 compliance demands input from multiple teams across an organization, and executive sponsorship will break down silos, making security a company-wide priority.
- A Skilled and Experienced Internal Team
The expertise of our internal technical team was a cornerstone of our compliance process. SOC 2 examines multiple aspects of an organization’s security posture, including personnel practices, software development protocols, and cloud security. The team managing compliance must efficiently coordinate the collection of evidence, manage secure testing procedures, and collaborate with auditors to ensure that every requirement is met. Without an experienced team, the process can become quickly become complex, delaying or even derailing compliance efforts.
- Automated Compliance Tools and Strategic Partners
Streamlining the compliance process is vital. Third party providers like Vanta, a leading compliance management software, will automate evidence collection and continuously monitor compliance posture. Automation reduces the manual workload of gathering documentation and provides real-time visibility into compliance status. For the audit, we partnered with Prescient Assurance, experts in security and compliance attestation, who provide valuable guidance throughout the process. Identifying the right tools and partners can simplify the journey, ensuring efficiency and accuracy.
Our Ongoing Commitment to Data Security
Achieving SOC 2 compliance is not a one-time effort; it marks the beginning of an ongoing commitment to data security and privacy. Establishing continuous monitoring protocols ensures that we adhere to the highest standards in data security. SOC 2 compliance reflects our dedication to safeguarding our clients’ data and enhancing their trust in our services.
By maintaining this rigorous standard, our clients are able to focus on core business activities, confident that their data is secure. In an environment where data breaches have severe consequences, we take our role as guardians of client data seriously. If your organization is seeking to strengthen its data security framework, engage with us to learn more about the journey. Our experience and commitment to data privacy make us a trusted partner in navigating the intricacies of data security.
