What is the primary objective of **SOC 2**?

**The primary objective of SOC 2 is to provide independent assurance that a service organization's controls meet the Trust Services Criteria (TSC) for security, availability, processing integrity, confidentiality, and privacy.** Developed by the AICPA, SOC 2 evaluates systems handling customer data, with Security (CC1-CC9) mandatory. Type 2 reports assess design and operating effectiveness over 3-12 months, enabling SaaS providers and cloud firms to demonstrate robust risk mitigation to enterprise clients.

Who is legally or professionally required to comply with **SOC 2**?

**No organization is legally required to comply with SOC 2, as it is a voluntary AICPA framework, but service organizations are professionally compelled by enterprise customer mandates.** It targets SaaS, cloud, fintech, and data processors storing or transmitting customer data, especially those pursuing deals with Fortune 500 buyers demanding Type 2 reports in RFPs and MSAs. Startups scaling to $5K+ ACV contracts and firms with 10-500+ employees face exclusion without it.

Does **SOC 2** require an external audit or third-party certification?

**Yes, SOC 2 requires an external audit by an independent AICPA-accredited CPA firm to issue Type 1 or Type 2 attestation reports.** Type 1 verifies control design at a point in time; Type 2 tests operating effectiveness over 3-12 months via sampling, walkthroughs, and evidence like logs and pen tests. No formal certification exists—reports provide the assurance.

How often should an assessment for **SOC 2** be performed?

**SOC 2 Type 2 assessments should be performed annually to capture a full 12-month control period, with bridge letters extending validity up to 3 months.** The monitoring period requires 3-12 months minimum, followed by audit fieldwork. Annual recertification with bridged periods (prior 9 months + new 3 months) maintains continuous assurance for stakeholders.

What are the consequences of non-compliance with **SOC 2**?

**Non-compliance with client-mandated SOC 2 results in deal disqualification, extended sales cycles, and heightened breach liability, though no direct AICPA fines apply.** Enterprises reject vendors lacking Type 2 reports, inflating CAC by 20-50% and stalling 70-80% of SaaS deals. Breaches without documented controls trigger SLA penalties, litigation exceeding $1M, and reputational damage delaying funding.

An **SOC 2** be mapped to other international frameworks?

**Yes, SOC 2 controls map extensively to frameworks like ISO 27001 (80% overlap), NIST CSF, GDPR, and HIPAA via AICPA spreadsheets.** Common Criteria (CC1-CC9) align with ISO Annex A controls, enabling shared evidence for multi-compliance. This reduces duplication, with Security TSC foundational across mappings.

What is the first step to begin implementing **SOC 2**?

**The first step is a scoping exercise and gap analysis against the Trust Services Criteria, selecting Security (mandatory) plus relevant optional criteria.** Inventory assets, data flows, and vendors; engage a CPA for readiness assessment ($5-10K). Map existing controls to TSC using tools like Vanta, prioritizing 50-100 remediations.

What is the primary objective of **REACH**?

**The primary objective of REACH is to ensure a high level of protection of human health and the environment from chemical risks while enhancing EU chemicals industry competitiveness and promoting alternative testing methods.** REACH (Regulation (EC) No 1907/2006) shifts responsibility to industry for registering substances manufactured or imported >1 tonne/year, generating hazard, exposure, and risk management data via dossiers submitted to ECHA.

Who is legally or professionally required to comply with **REACH**?

**REACH legally requires manufacturers, importers, downstream users, and distributors placing substances, mixtures, or certain articles on the EU/EEA market to comply.** Obligations trigger at >1 tonne/year per legal entity per substance; non-EU manufacturers appoint an **Only Representative**. Article producers must notify ECHA for SVHCs ≥0.1% w/w exceeding 1 tonne/year (Article 7(2)).

Does **REACH** require an external audit or third-party certification?

**No, REACH does not require external audits or third-party certification.** It imposes continuous obligations like dossier submission to ECHA, but enforcement occurs via Member State inspections; ECHA conducts dossier evaluations without issuing certificates.

How often should an assessment for **REACH** be performed?

**REACH assessments must be performed continuously, with updates triggered by events like tonnage changes, new hazards, Candidate List additions, or Annex XIV/XVII amendments.** Annual tonnage reviews and monitoring of ECHA's CoRAP, SVHC Roadmap (250+ entries as of 2025), and restriction updates ensure ongoing compliance; records retained 10 years.

What are the consequences of non-compliance with **REACH**?

**Non-compliance with REACH results in Member State penalties that must be effective, proportionate, and dissuasive per Article 126.** These include fines, product seizures, market withdrawal; enforcement coordinated via ECHA's Forum, with variability by country (e.g., administrative fines to criminal sanctions).

Can **REACH** be mapped to other international frameworks?

**REACH cannot be formally mapped to other frameworks as it is a directly applicable EU regulation with unique obligations.** While data may support aligned reporting, its tonnage triggers (>1/10 tonnes/year), SVHC duties, and ECHA-specific processes stand alone without equivalence.

What is the first step to begin implementing **REACH**?

**The first step to implement REACH is to conduct a substance inventory identifying all substances manufactured or imported ≥1 tonne/year per legal entity.** Map tonnages, uses, and roles (manufacturer/importer/downstream user), prioritizing against Candidate List, Annex XIV, and Annex XVII for registration and gap analysis.

SOC 2 vs REACH

Standards Comparison

SOC 2

Voluntary

2010

AICPA framework for auditing service organization controls

REACH

Mandatory

2007

EU regulation for chemical registration, evaluation, authorisation, restriction

Quick Verdict

SOC 2 provides voluntary trust assurance for tech data handlers globally, while REACH mandates chemical risk management for EU manufacturers/importers. Tech firms adopt SOC 2 for enterprise sales; chemical firms use REACH for legal market access.

Cybersecurity / Trust

SOC 2

System and Organization Controls 2

Cost

€€€€

Complexity

High

Implementation Time

6-12 months

Key Features

Type 2 reports validate operating effectiveness over 3-12 months
Mandatory Security criterion with CC1-CC9 common controls
Flexible scoping of four optional Trust Services Criteria
Independent CPA firm audit attestations for trust
Risk-based controls overlapping ISO 27001 and GDPR

Chemical Safety

REACH

Regulation (EC) No 1907/2006 (REACH)

Cost

€€€

Complexity

Medium

Implementation Time

18-24 months

Key Features

Industry-led registration of substances over 1 tonne/year
SVHC Candidate List triggers communication and notifications
Authorisation regime for very high concern substances
Annex XVII restrictions with bans and limits
Supply-chain SDS and exposure scenario obligations

Detailed Analysis

A comprehensive look at the specific requirements, scope, and impact of each standard.

SOC 2 Details

What It Is

SOC 2 (System and Organization Controls 2) is a voluntary attestation framework by the AICPA evaluating service organizations' commitments to Trust Services Criteria (TSC). It assures controls for security, availability, processing integrity, confidentiality, and privacy of customer data using a risk-based, control-oriented approach via Type 1 (design) and Type 2 (operating effectiveness) reports.

Key Components

Five TSCSecurity** (mandatory CC1-CC9), Availability (A1), Confidentiality (C1), Processing Integrity (PI1), Privacy (P1-P11)
50-100 controls per scope, with redundancy (2-3 per category)
Built on COSO principles and 2017/2022/2023 TSC updates
CPA-issued reports with auditor opinions and evidence tests

Why Organizations Use It

Unlocks enterprise deals, shortens sales cycles by 15-30%
Builds trust moat, reduces CAC, mitigates breach liabilities
Voluntary but client-mandated in RFPs/MSAs
Enhances resilience, overlaps 80% with ISO 27001/HIPAA
Signals maturity to VCs, investors, hyperscalers

Implementation Overview

Phased: scoping/gap analysis (4-8 weeks), deployment/monitoring (3-6 months), audit (4-12 weeks)
Targets SaaS/cloud/fintech of all sizes, especially 10-500+ employees
Automation (Vanta/Drata) cuts effort 70%; annual Type 2 recertification

(178 words)

REACH Details

What It Is

REACH (Regulation (EC) No 1907/2006) is a directly applicable EU regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals. It aims to protect human health and the environment by shifting responsibility to industry for identifying and managing chemical risks across the supply chain. Its risk-based approach requires data generation on substances, mixtures, and articles.

Key Components

Four pillars: Registration (>1 tonne/year dossiers), Evaluation (dossier/substance checks), Authorisation (SVHC permissions), Restriction (Annex XVII bans/limits).
17 technical annexes defining data requirements, SDS rules, lists (e.g., Annex XIV).
Built on precautionary principle; no certification, but ongoing compliance via ECHA databases.

Why Organizations Use It

Mandatory for EU manufacturers/importers to ensure market access.
Mitigates fines, seizures, recalls; enhances supply-chain transparency.
Drives substitution, innovation; builds stakeholder trust via SDS/SVHC communication.

Implementation Overview

Phased: gap analysis, inventory, dossiers, monitoring.
Applies to chemical/product firms EU-wide; complex for globals.
No certification; national enforcement, self-audits essential. (178 words)

Key Differences

Aspect	SOC 2	REACH
Scope	Data security, availability, privacy controls	Chemical registration, evaluation, authorisation, restriction
Industry	SaaS, cloud, tech service organizations globally	Chemicals, manufacturing, importers in EU/EEA
Nature	Voluntary AICPA audit framework	Mandatory EU regulation with penalties
Testing	Type 2 audits over 3-12 months by CPAs	Dossier submissions, ECHA/Member State evaluations
Penalties	Lost business, no legal fines	Fines up to €10M, market bans, seizures

Scope

SOC 2

Data security, availability, privacy controls

REACH

Chemical registration, evaluation, authorisation, restriction

Industry

SOC 2

SaaS, cloud, tech service organizations globally

REACH

Chemicals, manufacturing, importers in EU/EEA

Nature

SOC 2

Voluntary AICPA audit framework

REACH

Mandatory EU regulation with penalties

Testing

SOC 2

Type 2 audits over 3-12 months by CPAs

REACH

Dossier submissions, ECHA/Member State evaluations

Penalties

SOC 2

Lost business, no legal fines

REACH

Fines up to €10M, market bans, seizures

Frequently Asked Questions

Common questions about SOC 2 and REACH

SOC 2 FAQ

REACH FAQ

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SOC 2

REACH

Quick Verdict

SOC 2

Key Features

REACH

Key Features

Detailed Analysis

SOC 2 Details

What It Is

Key Components

Why Organizations Use It

Implementation Overview

REACH Details

What It Is

Key Components

Why Organizations Use It

Implementation Overview

Key Differences

Scope

Industry

Nature

Testing

Penalties

Frequently Asked Questions

SOC 2 FAQ

What is the primary objective of SOC 2?

Who is legally or professionally required to comply with SOC 2?

Does SOC 2 require an external audit or third-party certification?

How often should an assessment for SOC 2 be performed?

What are the consequences of non-compliance with SOC 2?

An SOC 2 be mapped to other international frameworks?

What is the first step to begin implementing SOC 2?

REACH FAQ

What is the primary objective of REACH?

Who is legally or professionally required to comply with REACH?

Does REACH require an external audit or third-party certification?

How often should an assessment for REACH be performed?

What are the consequences of non-compliance with REACH?

Can REACH be mapped to other international frameworks?

What is the first step to begin implementing REACH?

You Might also be Interested in These Articles...

Singapore PDPA Implementation Guide: Mastering Part 6A Breach Notification Thresholds and Timelines from Primary Statute

Beyond the Boardroom: 5 Ways Modern Compliance Software Elevates Every Department

The Regulatory Radar: How Data-Driven Compliance Tools Provide Strategic Foresight

Run Maturity Assessments with GRADUM

Check out these other Gradum.io Standards Comparison Pages

ISO 50001 vs ISO 17025

UL Certification vs ISO 30301

SAFe vs ISO 14001