What It Is

SOC 2 (System and Organization Controls 2) is a voluntary attestation framework developed by the AICPA for evaluating service organizations' controls. It focuses on Trust Services Criteria (TSC)—Security (mandatory), Availability, Processing Integrity, Confidentiality, and Privacy—using a risk-based, control-oriented approach to assure data handling security.

Key Components

• Five TSC domains, with Common Criteria (CC1-CC9) under Security as foundation.
• 50-100+ controls mapped to TSC, often with redundancy (2-3 per point).
• Built on AICPA principles; Type 1 (design at point-in-time) vs. Type 2 (design + operating effectiveness over 3-12 months).
• CPA-led audits yield attested reports.

Why Organizations Use It

• Accelerates enterprise sales, unlocks markets like SaaS/cloud.
• Builds stakeholder trust, reduces due diligence friction.
• Mitigates breach risks, enhances resilience.
• Voluntary but market-mandated; ROI via higher ACVs, efficiency.

Implementation Overview

• Phased: scoping/gap analysis (2-8 weeks), deployment/monitoring (3-6 months), audit.
• Targets SaaS/fintech service orgs; scalable via tools like Vanta.
• Annual Type 2 recertification with continuous monitoring.

What It Is

GRI Standards (Global Reporting Initiative Standards) are a modular framework for sustainability reporting. They provide a global common language for disclosing significant economic, environmental, and social impacts. The impact-centric approach requires identifying material topics based on actual and potential effects on stakeholders, using a structured materiality process.

Key Components

• Universal Standards (GRI 1 Foundation, GRI 2 General Disclosures, GRI 3 Material Topics): baseline requirements.
• **Sector Standardssector-specific material topics (e.g., Oil & Gas, Mining).
• **Topic Standardsspecific disclosures (e.g., GRI 403 Occupational Health & Safety, GRI 308 Supplier Environmental Assessment). Built on principles like accuracy, balance, verifiability; includes mandatory GRI Content Index for traceability. Voluntary compliance model with omissions allowed if justified.

Why Organizations Use It

Drives accountability, regulatory alignment (e.g., EU CSRD), risk management, and benchmarking. Enhances stakeholder trust, investor appeal via interoperability (SASB, ISSB), and operational improvements in HES.

Implementation Overview

Phased: materiality assessment, data systems, disclosures, assurance. Applies to all sizes/industries globally; no certification but third-party assurance recommended. (178 words)