Board of Directors Requirements: SOC 2 Type II Compliance

SOC 2 Type II is a set of standards for evaluating and auditing a company’s information security controls. It is one of several types of service organization control (SOC) reports designed to give customers and clients confidence that a company’s information security measures are effective and trustworthy.

SOC 2 Type II primarily focuses on controls related to the security, availability, processing integrity, confidentiality, and privacy of a company’s systems and data. To achieve SOC 2 Type II compliance, a company must undergo a thorough audit of its information security controls by a qualified third-party auditor, who will determine whether they meet the SOC 2 Type II standards.

One of the board of directors’ responsibilities is to ensure the organization takes appropriate measures to protect sensitive data, systems, and the company’s values and integrity. SOC 2 Type II compliance helps enhance risk management strategies to ensure the company’s information security measures are effective and trustworthy.

Effective information security measures are crucial for any organization, including nonprofits, for the following reasons:

• It protects sensitive data. Information security measures help to protect sensitive data, such as customer data, employee information, financial records, and trade secrets, from being accessed or compromised by unauthorized individuals.

• It ensures the confidentiality and integrity of information. Placing information security measures can help ensure only authorized individuals can access sensitive data and that it is not tampered with or altered in any way.

• It maintains the availability of systems and assets. Having functional information security measures ensures systems and assets are available when needed and that they are not disrupted or taken offline by security incidents.

• It complies with laws and regulations. Many industries are subject to rules and regulations that require companies to implement specific information security measures. Failing to act by these requirements can result in costly fines and penalties.

• It protects the company’s reputation. A security incident can damage an organization’s reputation and cause customers, clients, and other stakeholders to have skepticism in the company. By implementing effective information security measures, an organization can protect its reputation and maintain the trust of its stakeholders.

When evaluating whether to invest in a new piece of software, the board of directors should consider if the software complies with the relevant SOC 2 Type II standards and if it will help the company maintain or enhance its compliance.

Here are a few specific steps the board can take to ensure that the decision to invest in a new piece of software is consistent with the company’s SOC 2 Type II compliance:

• Review the software’s documentation and any available certification or accreditation information to determine whether it meets the relevant SOC 2 Type II standards.

• Engage the company’s information security team or an independent third party to assess the software’s compliance with SOC 2 Type II standards.

• Consider the potential impact of the software on the company’s overall information security posture.

• Evaluate if the software will help the company maintain or enhance its SOC 2 Type II compliance. 

OnBoard is SOC 2 Type II Certified. Its secure system of record for board meeting content, communication, and data limits exposure to risk and reduces the number of vulnerable endpoints.