In today’s business environment, compliance is no longer optional; it’s a competitive necessity. Organizations across industries are under increasing pressure to demonstrate strong controls that help warrant reliable financial data, adhere to regulatory requirements, and enforce data security, especially as outsourcing functions become increasingly common.
System and Organization Controls (SOC) compliance is often identified as a strategic approach to help achieve our clients’ objectives, which are normally to align with their internal goals and meet external requirements. However, achieving compliance may require companies to make a fundamental shift in culture, operations, and internal processes.
Two recent case studies, one within the technology sector and another within the insurance industry, illustrate the challenges organizations face and how Forvis Mazars helped them navigate compliance with confidence.
The Challenge: A Compliance Crossroad
Both companies, one a data analytics company and the other a leading insurance provider, found themselves at pivotal moments in their growth. Each needed to achieve compliance with key industry standards, SOC 1 for the data analytics company and SOC 2 for the insurance provider, to meet customer expectations and remain competitive. Yet, both faced significant internal obstacles, including:
- Lack of Defined Controls: Neither company had a structured set of formalized controls, leading to inconsistencies and vulnerabilities within their operations.
- Limited Understanding of Compliance Processes: Internal stakeholders were unfamiliar with audit procedures, documentation requirements, and best practices when it comes to internal controls, making the compliance journey quite challenging.
- Operational Complexity: The data analytics company struggled with an ad hoc decision-making environment, while the insurance provider had a vast portfolio of applications, adding further complexity to the process.
These hurdles made it clear that achieving compliance reached beyond meeting external compliance requirements and required a broader shift toward operational discipline and security-minded business practices.
The Process: A Tailored Approach to Readiness
Recognizing the distinct challenges of each client, Forvis Mazars tailored its approach to help achieve success.
Forvis Mazars conducted a SOC 1 Readiness Assessment for the data analytics company and a SOC 2 Readiness Assessment for the insurance provider. For each company, this process included the following pivotal steps:
- Mapping Processes to the SOC Framework: Utilizing internal practice tools, our professionals mapped the client’s existing processes to the SOC control framework, which involved a detailed analysis of their current processes and identifying areas that needed refinement to align with best practices relevant to their respective sector.
- Training and Education: Forvis Mazars provided informal training sessions for the client’s control owners. These sessions covered the purpose of a SOC Report, common terminology, and expectations for the engagement. By educating the control owners, our professionals empowered them with the knowledge needed to help them handle their responsibilities and understand the importance of their roles related to internal controls.
- Detailed Walkthroughs and Working Sessions: Through in-depth walkthrough meetings with product owners and collaborative working sessions with management, Forvis Mazars gained a deep understanding of each application, which allowed our professionals to accurately scope each report to include only the relevant applications. These sessions also helped with identification of potential gaps and areas for improvement within the client’s control environment.
- Identification of Gaps: Our professionals pinpointed specific areas in which the client’s controls were lacking or needed improvement. This detailed overview provided the client with a clear understanding of their current state and the steps needed to help achieve SOC compliance.
- Recommendations for Improvement: Forvis Mazars provided actionable recommendations to help address the identified gaps. These recommendations were tailored to the client’s specific needs and were aimed at enhancing their overall control environment. By following these recommendations, both clients strengthened their controls and improved their compliance posture.
- Enhanced Operational Rigor: The introduction of consistent and formally-documented procedures led to greater operational discipline. This improvement not only increased efficiency but also helped reduce the risk of errors and inconsistencies within their processes.
Both companies benefited from our SOC & HITRUST team’s ability to translate complex compliance requirements into actionable steps, helping to prepare their teams for their respective audits.
The Outcome: Strengthened Operations That Resulted in New Business Opportunities
Through these efforts, both organizations successfully transformed their control environments and positioned themselves for long-term success.
- The data analytics company is now prepared to pursue a SOC 1 Type 2 Examination, opening the door to new enterprise prospects and a more structured, risk-conscious operational approach.
- The insurance provider successfully obtained a SOC 2 Type 1 Report and is actively working toward its Type 2 Report, solidifying its commitment to data security and compliance across the organization.
In both cases, Forvis Mazars’ strategic guidance helped the above clients build stronger, more resilient control environments that may support growth, increase customer trust, and refine operational excellence in the long term.
The Bigger Picture: Compliance as a Competitive Advantage
The journeys of these two companies highlight an important lesson: compliance is not just a regulatory hurdle; it’s a foundation for sustainable business success. Organizations that invest in robust controls and security practices may find it helps them build trust with clients, differentiate themselves in competitive markets, and mitigate risks.
If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.