Blockchain SOC Audit was written for the ISACA GWDC by Broadly.
Why does your blockchain need a SOC audit? Blockchain technology is seemingly taking over the world. This is a distributed database shared among computer network nodes. The blockchain will store information in digital format as a database. The technology is renowned for its role in the cryptocurrency sector, such as encrypting Bitcoin. In this case, blockchain maintains a secure and decentralized transaction record. Blockchain technology is also used in the supply chain, healthcare, modern voting, and property records sectors to keep secure records. Undoubtedly investing in this technology is sure to bring your firm a tidy profit. However, this will only be when you take the necessary steps to keep your blockchain in top shape. One of these steps is investing in a SOC {Systems and Organizations Control} audit. This is an audit conducted on the company controls that are in place to ensure the availability, confidentiality, security, and privacy of clients’ data. This audit was overseen and created by the AICPA {American Institute of Certified Public Accountants}.
There are two SOC audit types, including SOC 1 and 2. SOC 1 will focus on your firm’s financial processes and reports. On the other hand, SOC 2 centers on how you secure your technology and data. The SOC 2 audit defines the criteria for customer data management according to five “trust” principles. These include security, availability, security, processing integrity, privacy, and confidentiality.
In the case of blockchain technology, an SOC 2 audit is the typical one for your company. Below are some reasons for conducting this SOC audit for your company.
Gives clients peace of mind
In most instances, clients will demand your SOC report when you are handling their sensitive data. This will give them meaningful insight into your firm’s security landscape, governance over internal controls, vendor management, and regulatory compliance. With the audit in place, customers can have peace of mind that their data is safe. This is crucial because all service organizations primarily rely on their brand reputation to draw in and keep clients. The SOC audit report will also satisfy your clients’ third-party vendor management processes because they will be sure their networks and systems are secure.
It is a marketing differentiator
In the current cutthroat competition in all business sectors, everyone is looking for a marketing differentiator that sets them apart. Your brand can stand out from your competitors with a SOC audit. With this report, you can market your brand as one that adheres to rigorous compliance standards that your competitors do not. The SOC 2 report, in particular, will set your firm apart as one with a serious commitment to protecting clients’ data, something that customers in the current world place a lot of emphasis on.
It results in long-term cost saving
Before investing in anything, the first thing a savvy business owner will ask is how much the return on investment will be. Based on a company’s complexity and size, a SOC audit can cost between $20000-$80000. Besides these figures, you will factor in the additional software and staffing expenses needed for the audit, along with any lost productivity during the process.
The figures might seem high, but they will pale when compared to the losses you will incur in case of a data breach. According to data from IBM, data breaches in 2021 cost companies an average of $4.24 million, which was a 9.8% increase from 2020. Other than this, your business will suffer significant reputation damage, leading to lost business. A SOC audit minimizes the risk of a data breach and thus protects you from huge losses.
It streamlines compliance mapping
A SOC certification will facilitate your company’s compliance across other standards or frameworks that your business might need. For instance, if you accept credit card payments, you will likely need to comply with Data Security Standards {DSS} and Payment Card Industry {PCI} standards. Thankfully, the AIPCA has common criteria mapping guidelines with most compliant bodies. In the above example, therefore, you will have complied with most of the DSS and PCI requirements when you are getting a SOC audit. This saves you some time and the cost of complying with the requirements of different regulatory bodies.
You can pinpoint weaknesses in your organization
Most people will cringe when they hear of an audit because they assume this will magnify their flaws to punish them. Nonetheless, a SOC audit will independently review your systems to point out weaknesses and give you the chance to improve different aspects before a client embarrassingly points out a flaw in your organization.
You can also use the report to streamline your business based on the knowledge of the cybersecurity risks to which your data is exposed. This information will guide a few changes in your company to save money and attract new business. For instance, you might learn that the changes your organization goes through warranty a six-month security assessment rather than an annual one. You can also tailor the security assessment according to your cybersecurity risks.
You cannot afford to use blockchain technology while ignoring the above benefits of a SOC audit for your firm. When you sign up for an assessment, the auditor will first determine the SOC audit type that will benefit your company. You will then collect all the evidence, policies, and procedures needed for the audit before identifying any compliance gaps that might cause issues during the audit.
You would no doubt want to know how the SOC audit has impacted your clients and what they would like to see you improve in your data security. Most companies will give their clients questionnaires to fill out detailing their experiences and suggestions. Set yourself apart with a Google reviews link on which clients can leave their comments online.
You only have to send your rink for Google review to your clients to streamline the feedback collection process. With the links, these suggestions and compliments will be visible to other online users. They will thus serve as an advert for new clients, since most people now check online reviews before investing in a company.
Want to learn more about cybersecurity? Join our Information Technology Certified Associate™ (ITCA™) – Cybersecurity Fundamentals.
