Agiboo is well-known for its commodity trading and risk management software (CTRM), which prioritizes compliance and security – as we’ve previously highlighted in our update on regulatory compliance and how the 4.0 version of our flagship software is equipped to handle it. As we’ve since been asked: yes, Agiboo also holds SOC (System and Organization Controls) compliance certification to guarantee the highest standards of data security and privacy. Which is to say, we too have a high standard for our internal controls – and the certification to prove it.
In this article, we’ll explain all you need to know about SOC and share an overview of what SOC Compliance typically involves for Agiboo and its customers.
SOC compliance: an overview
The System and Organization Controls (SOC) reports are frameworks established by the American Institute of Certified Public Accountants (AICPA). They focus on internal controls, particularly those related to financial reporting, data security, and privacy.
SOC compliance requires independent audits of a company’s processes, systems, and data handling to ensure they meet rigorous security standards.
The three types of SOC reports:
SOC 1:
Focuses on internal controls over financial reporting. A SOC 1 audit helps service organisations examine and report on internal controls relevant to customers’ financial statements. It focuses on processing and securing business information for the purpose of financial statements as IT processes. IT systems are required to be included in a SOC 1 audit.
SOC 2:
A SOC 2 audit helps service organisations examine and report on internal controls relevant to information security, systems availability, processing integrity, confidentiality and/or privacy of customer data.
SOC 3:
A simplified version of SOC 2, intended for general audiences, that confirms the organization’s compliance with trust principles but doesn’t include the detailed technical information found in SOC 2. It focuses on data security and details the systems and processes you have in place to keep customer and consumer data secure.
Agiboo: SOC 1 certification
As Agiboo is a SaaS company, we hold SOC 1 certification. It assesses our ability to securely manage data, ensuring confidentiality and privacy in line with best practices. This is especially critical given the sensitive nature of commodity trading. The certification verifies that Agiboo’s systems are designed to keep data safe, and that our internal processes for handling and securing customer information are robust and trustworthy.
If and when a company outsources services that affect the internal control over financial reporting of another company, a SOC 1 is the logical choice. In fact, SOC 1 certification is required when an entity’s services impact a user entity’s financial reporting. It evaluates how our services impact our customers’ financial reporting control environment.
It is important to note here that a SOC 1 audit is not a financial audit, but intended to provide information relevant to anything that could affect the controls of the financial reporting process. Which is to say, it provides both management of the service organization and of the users, but also the independent auditors of their financial statements with about the various controls at the service organization that are likely to be relevant to the users internal control over financial reporting.
What it means for our customers
Agiboo’s SOC compliance ensures that clients’ data is managed in a secure environment, meeting regulatory standards for data protection. For businesses in regulated industries, this compliance reduces the burden of conducting their own due diligence on Agiboo’s systems. The SOC certification acts as a formal, third-party verification of Agiboo’s security practices.
Agiboo’s SOC compliance certification demonstrates our dedication to maintaining the highest standards of operational security and risk management, crucial for clients in sensitive sectors such as commodity trading.
Key benefits of SOC Compliance for Agiboo:
- Data Security:
Ensures that customer data is protected from unauthorized access - Risk Management:
Helps in identifying and mitigating risks related to data breaches or misuse. - Trust & Transparency:
Provides customers and stakeholders with confidence that Agiboo follows strict security and privacy controls. - Compliance Assurance:
Aligns with regulatory standards that many clients, especially those in financial and commodities sectors, must meet.
Does your CTRM software adhere to industry-standard security protocols and regulatory requirements? To secure your data but also ensure legal compliance? Agiblocks does.
