In this video, we discuss security policies and standard as it applies to cybersecurity as covered on Information Systems and Controls ISC CPA exam.
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To strengthen cybersecurity defenses and make IT infrastructure more resilient, it's crucial to integrate security measures across all organizational levels. This approach starts at the highest level with the development of security policies. These policies provide a broad outline of an organization's security needs and lay out a strategic plan for implementing necessary security measures. Essentially, they offer a high-level view of what the organization aims to achieve in terms of security.

Below these policies, at a more granular level, are security standards. These are benchmarks or criteria that the organization follows to reach the goals set out in the security policies. Standards serve as a bridge between high-level policies and practical actions, defining the specific technologies, configurations, and practices that should be adopted to achieve compliance with those policies.

At the base of this structure are the standard operating procedures (SOPs). These documents offer detailed, step-by-step instructions on how to execute business processes in line with both the organization's security policies and standards. SOPs are essential for ensuring that day-to-day operations adhere to the established security framework, thereby reducing risk and enhancing overall security.

In the context of a Service Organization Control 2 (SOC 2®) engagement, these three elements—security policies, standards, and procedures—are critically evaluated by service auditors. SOC 2® is a framework aimed at service organizations, focusing on non-financial reporting controls as they relate to security, availability, processing integrity, confidentiality, and privacy. During a SOC 2® audit, auditors assess how well an organization's security policies, standards, and procedures align with the Trust Services Criteria, which are the benchmarks for protecting and securing customer data.

Example:

Consider a cloud storage provider that aims to ensure the security and privacy of its clients' data. At the top level, the company establishes a security policy stating its commitment to data protection and outlining its strategy for risk management. This policy might emphasize the importance of encryption, access control, and regular security assessments.

At the next level, the company develops security standards specifying the encryption methods to be used (e.g., AES-256), the protocol for managing access controls (e.g., role-based access control), and the frequency and scope of security assessments.

Finally, at the bottom level, the company creates SOPs detailing how employees should implement these standards. For instance, an SOP might describe the process for setting up encrypted storage accounts, including step-by-step instructions for configuring encryption settings and assigning access rights.

During a SOC 2® audit, auditors review these policies, standards, and procedures to verify that the cloud storage provider not only has a comprehensive security framework in place but also adheres to it in practice, thereby ensuring the protection of client data according to the Trust Services Criteria.



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