SOC 2
Definition
SOC 2 (System and Organization Controls 2) is a compliance framework developed by the American Institute of Certified Public Accountants (AICPA) that evaluates an organization's information systems based on five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
A SOC 2 Type I report evaluates whether controls are properly designed at a specific point in time. A SOC 2 Type II report evaluates whether those controls operated effectively over a period of time (typically 6-12 months). Enterprise buyers strongly prefer Type II reports.
Why It Matters
SOC 2 is the primary compliance standard that enterprise customers use to evaluate vendor risk. Without a SOC 2 report, selling to enterprise clients means answering hundreds of custom security questionnaire questions, undergoing bespoke vendor risk assessments, and facing extended sales cycles.
With a SOC 2 Type II report, the security review process is streamlined. The report serves as standardized evidence of your security posture, dramatically reducing the time and effort required to close enterprise deals.
For SaaS companies, SOC 2 is effectively a market access requirement. For advisory firms and technology service providers, it demonstrates operational maturity that differentiates against competitors who lack it.
The Five Trust Service Criteria
- Security -- Protection against unauthorized access (always in scope)
- Availability -- System availability consistent with commitments
- Processing Integrity -- System processing is complete, accurate, and timely
- Confidentiality -- Information designated as confidential is protected
- Privacy -- Personal information is collected, used, and disposed of properly
How BAG Uses It
BAG maintains an active SOC 2 readiness program, now in its 13th iteration. We have built automated evidence collection, continuous compliance monitoring, and documented controls across all five Trust Service Criteria. We help clients achieve SOC 2 readiness through a practical, 90-day framework that avoids consulting theater and focuses on the controls that actually matter.