HECVAT vs. SOC 2: Find Out the Difference

Organizations today, particularly those handling sensitive data or offering IT services, must respond to mounting calls for transparency on security and compliance procedures. Two such frameworks that fulfill this need are the Higher Education Community Vendor Assessment Toolkit (HECVAT) and the Service Organization Control 2 (SOC 2). However, they differ in their functions, target audiences, and degree of complexity. It is imperative for companies, especially IT service providers and vendors who collaborate with educational institutions or enterprises that prioritize data security, to comprehend the difference between HECVAT and SOC 2.

This post will examine these two frameworks in detail, point out their differences, and talk about how businesses should handle compliance with each.

What is HECVAT and Why is It Important?

The security assessment tool known as HECVAT (Higher Education Community Vendor Assessment Toolkit) was created especially for universities. It was developed to assist educational institutions in assessing the information security measures of outside vendors and service providers, especially those that offer cloud services. Universities are important data processors that handle large volumes of financial, academic, and personal data, which makes them easy targets for hackers.

The toolkit comprises a set of inquiries centered around a vendor's security, privacy, and data protection policies, practices, and processes. The goal is to assist academic institutions in evaluating a vendor's security posture and compliance with industry standards for protecting sensitive data.

Key Features of HECVAT:

• Tailored for Higher Education: HECVAT is designed with the needs of universities and colleges in mind, with questions specifically targeting issues pertinent to these institutions.
• Standardization: It provides a standardized approach to security assessments for vendors working with educational institutions, reducing the need for multiple custom questionnaires.
• Transparency: By filling out the HECVAT, vendors can demonstrate their commitment to transparency in their security practices.

There are two primary versions of the toolkit:

• HECVAT Full: A comprehensive questionnaire designed for vendors managing sensitive or substantial amounts of data.
• HECVAT Lite: A shorter version of the toolkit, intended for smaller vendors or those overseeing sensitive data.

What is SOC 2 and Why is It Important?

The American Institute of Certified Public Accountants (AICPA) created the SOC 2 auditing technique to ensure that service providers handle data securely. The SOC 2 framework emphasizes the importance of safeguarding customer data, ensuring that service providers maintain high standards of security, availability, processing integrity, confidentiality, and privacy. This compliance not only helps build trust with clients but also demonstrates a company's commitment to protecting sensitive information from potential threats. While HECVAT is exclusive to higher education, SOC 2 is applicable to a wide range of enterprises, particularly those in technology and service-oriented industries.

SOC 2 centers on five criteria for Trust Services:

1. Security: The organization fortifies the system against physical and logical intrusions.
2. Availability: The system can be used and operated as promised or arranged.
3. Processing Integrity: All system processing is approved, timely, valid, accurate, and complete.
4. Confidentiality: As agreed upon or necessary, confidential information is protected.
5. Privacy: Personal data is gathered, utilized, stored, shared, and destroyed in accordance with the entity's privacy notice and the standards outlined in the Generally Accepted Privacy Principles (GAPP) of the AICPA.

SOC 2 audits are conducted by certified public accountants (CPAs), and they result in a detailed report that certifies whether an organization’s security controls meet the established criteria. Unlike HECVAT, SOC 2 is not a self-assessment; it is a third-party audit and provides a higher level of assurance to customers, partners, and stakeholders.

Key Features of SOC 2:

• Wide Applicability: SOC 2 applies to a wide range of industries, especially companies providing cloud computing services or managing sensitive data on behalf of others.
• Third-Party Validation: A SOC 2 report is generated after a formal audit by an independent CPA, offering an elevated level of credibility.
• Customization: SOC 2 audits can be tailored based on the specific needs of the organization, such as focusing on one or more of the Trust Service Criteria.

There are two types of SOC 2 reports:

• SOC 2 Type 1: A snapshot of the organization’s systems and controls at a specific point in time.
• SOC 2 Type 2: A more comprehensive report that evaluates the effectiveness of the controls over a period of time (usually six months).

Differences Between HECVAT and SOC 2

Purpose and Audience

HECVAT: Designed with educational institutions in mind, this tool evaluates the security posture of companies that provide services to colleges and universities. By ensuring that vendors have sufficient security measures in place to safeguard sensitive academic and personal data, the framework assists these institutions.

SOC 2: SOC 2 covers a wider range of industries than education and is suitable for businesses in the healthcare, financial services, and technology sectors, among others. It acts as an accepted benchmark for evaluating the internal controls that a company has in place for availability, privacy, and information security.

Assessment Method

HECVAT: HECVAT is a self-assessment tool. Vendors complete a standardized questionnaire, answering questions related to their security protocols, data handling practices, and privacy measures. The goal is to provide transparency to higher education institutions, allowing them to make informed decisions.

SOC 2: SOC 2 is a formal audit conducted by a third-party CPA firm. The audit is based on the Trust Service Criteria, and organizations are evaluated on the design and operational effectiveness of their controls. SOC 2 reports offer more rigorous, independent validation compared to a self-assessment like HECVAT.

Standardization vs. Customization

HECVAT: Provides a one-size-fits-all questionnaire for all vendors, focusing on higher education-specific concerns. While this standardization makes it easy for educational institutions to compare vendors, it may not address all unique aspects of a vendor’s business model or technology stack.

SOC 2: SOC 2 audits can be highly customized. Organizations can choose to be evaluated on all or some of the five Trust Service Criteria, depending on their specific operations and the concerns of their customers. This makes SOC 2 more flexible for service providers across different sectors.

Assurance Level

HECVAT: Because HECVAT is a self-assessment, it gives a lower level of confidence compared to SOC 2. The seller is responsible for completing the questionnaire, and while the responses provide useful insight, there is no independent verification.

SOC 2: Offers a higher level of assurance since the audit is undertaken by a third party. A SOC 2 report certifies that an organization’s controls have been examined and are functioning effectively.

Time and Resources

HECVAT: Completing HECVAT is less resource intensive. The self-assessment can be completed in a short amount of time, depending on the size of the vendor and the version of HECVAT (Full or Lite) being used.

SOC 2: A SOC 2 audit is a longer, more resource-intensive process. Organizations may need to prepare for several months, ensuring that their security controls are in place and well-documented before the audit begins. Additionally, the audit itself can take several weeks or months, depending on its scope.

Cost

HECVAT: As a self-assessment, HECVAT is low-cost. Vendors may need to allocate internal resources to complete the questionnaire, but there are no fees for a formal audit or third-party validation.

SOC 2: A SOC 2 audit can be expensive, especially for small organizations. The cost depends on the complexity of the organization’s IT systems and the number of Trust Service Criteria being audited. Organizations must also factor in the cost of internal preparations, such as policy updates and system improvements.

Choosing Between HECVAT vs. SOC 2

Deciding whether to seek HECVAT, SOC 2, or both relies on the nature of your firm, your customer base, and your overall compliance goals.

If your principal clients are educational institutions, HECVAT may be sufficient, especially if they need it as part of the vendor selection process. Completing HECVAT can demonstrate your organization’s commitment to security while minimizing the need for custom assessments for each customer.

For firms wanting broader, industry-wide assurance that their security measures meet rigorous criteria, SOC 2 is the superior choice. SOC 2 offers third-party validation that can be shared with several clients across different industries.

While both HECVAT and SOC 2 strive to review and enhance security processes, they differ in scope, audience, and depth. HECVAT is a relatively specialist tool targeted for the higher education industry, while SOC 2 is a widely known audit applicable across different businesses. Organizations must examine their client demands, resource availability, and long-term goals while choosing amongst these frameworks.

By knowing the distinctions between HECVAT vs. SOC 2, organizations can make informed judgments about which framework to follow, ensuring they satisfy the demands of their clients while maintaining a solid security posture.

Compass Simplifies HECVAT and SOC 2 Compliance

Navigating the complexities of HECVAT and SOC 2 can be challenging for organizations, but Compass is here to help. We guide businesses through both frameworks, ensuring that they not only meet compliance requirements but do so in a cost-effective and efficient manner. Whether you are preparing for HECVAT or undergoing a SOC 2 audit, our expertise simplifies the process, allowing you to focus on your core operations with confidence.

Contact us today to learn how Compass can help you achieve seamless compliance and robust security posture.