SOC 2 Type 2 Attestation Report

In today’s digital society, cybersecurity is a critical priority. The importance of protecting sensitive data against threats is widely recognized, however, understanding the nuances of various compliance frameworks, attestations, or reports can be complex.

Common terms such as SOC 2, ISO 27001, HIPAA, PCI DSS represent standards designed to ensure that organizations manage information securely and responsibly.

 

SOC 2 (System and Organization Controls 2) is a set of criteria designed to help organizations manage customer data based on five ‘’ Trust Service Criteria ‘’ : Security, Availability, Processing Integrity, Confidentiality, and Privacy. SOC 2 ensures that companies have rigorous protocols to prevent unauthorized access, keep systems operational, maintain data integrity, ensure confidentiality, and respect privacy. In other words: how data is protected from hackers, how systems remain operational when needed, and how any errors or issues with data are handled.

SOC 2 Type 1 vs Type 2

SOC 2 reports come in two varieties: Type 1 and Type 2.

• SOC 2 Type 1: This report evaluates the design of a company’s systems and processes at a specific point in time. It assesses whether the necessary controls are in place but does not verity their operational effectiveness over time. This assessment is conducted by an independent third-party auditor.
• SOC 2 Type 2: The Type 2 report is more comprehensive and assesses not only the design, but also the effectiveness of the company’s control over a period, typically ranging from a few months to a year. This provides assurance that the controls are not only in place but are consistently functioning as intended. As with Type 1, the audit is performed by an independent third-party auditor.

Companies often start with a Type 1 audit to establish the presence of necessary controls before progressing to a Type 2 audit to valide ongoing effectiveness. Sinistar has completed its SOC 2 Type 1 audit and has now undergone its SOC 2 Type 2 audit.

Why is SOC 2 important for Sinistar?

At Sinistar, we manage sensitive data from various stakeholders, including insurers, their policyholders and hosts. Ensuring the security and privacy of this information is crucial, and achieving SOC 2 compliance demonstrates our commitment to protecting stakeholder information through robust, well-tested controls.

Regulatory Compliance vs. Compliance Frameworks

Compliance extends beyond frameworks like SOC 2. It also incudes adhering to regulatory requirements. For instance, in Québec, Law 25 (Loi 25) mandates specific data protection measures, and the _Personal Information Protection and Electronic Documents Act _(PIPEDA) governs how Canadian private-sector organizations collect, use, and disclose personal information. These laws set the legal baseline for data protection, ensuring that organizations comply with statutory obligations.

In the tech industry, meeting regulatory standards alone is insufficient. Regulatory compliance provides a minimum standard for data protection, whereas compliance frameworks like SOC 2 offer additional layers of security and trust. SOC 2 provides a structured approach to managing and protecting data that goes beyond basic legal requirements, making it a valuable asset for tech companies.

Beyond Compliance

While compliance frameworks are vital, they are not foolproof solutions. Risks in data security and privacy remain, necessitating continuous improvement of safety measures to mitigate these risks.