Security & Compliance Glossary

Clear definitions for SOC 2, ISO 27001, GDPR, and security terminology. Everything you need to understand compliance.

SOC 2

8 terms

Terms related to SOC 2 compliance and auditing

SOC 2

System and Organization Controls 2 - An auditing procedure developed by the AICPA that evaluates a service organization's controls relevant to security, availability, processing integrity, confidentiality, and privacy. Unlike a certification, SOC 2 produces an audit report issued by a licensed CPA firm.

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Trust Services Criteria (TSC)

The five categories of controls evaluated in a SOC 2 audit: Security (required), Availability, Processing Integrity, Confidentiality, and Privacy. Developed by the AICPA, these criteria define the control objectives organizations must meet.

SOC 2 Type 1

A point-in-time audit that evaluates whether controls are designed appropriately on a specific date. It proves controls exist but not that they work consistently over time. Most enterprise customers do not accept Type 1 as real compliance.

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Learn more: SOC 2 Type 1 vs Type 2

SOC 2 Type 2

A period-of-time audit that evaluates whether controls are designed appropriately AND operating effectively over a minimum 3-month observation period. This is the industry standard that enterprise customers expect.

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Learn more: SOC 2 Type 1 vs Type 2

Observation Period

The mandatory 3-month (minimum) timeframe during which auditors monitor and test controls for a SOC 2 Type 2 report. This period is set by AICPA standards and cannot be compressed or shortened.

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Learn more: How Long Does SOC 2 Take?

Common Criteria (CC)

The nine control categories (CC1-CC9) that make up the Security criterion in SOC 2. Includes Control Environment, Communication, Risk Assessment, Monitoring, Control Activities, Access Controls, System Operations, Change Management, and Risk Mitigation.

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AICPA

American Institute of Certified Public Accountants - The organization that developed and maintains the SOC 2 framework, Trust Services Criteria, and auditing standards. Only licensed CPA firms can issue SOC 2 reports.

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In-Progress Letter

A letter from auditors confirming that an organization has engaged in the SOC 2 audit process. Used to satisfy procurement requirements while the observation period is ongoing. Includes the security controls being audited and estimated completion date.

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ISO 27001

8 terms

Terms related to ISO 27001 certification

ISO 27001

An international standard for information security management systems (ISMS), published by the International Organization for Standardization. Unlike SOC 2, it produces an actual certificate valid for 3 years, with annual surveillance audits.

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ISMS

Information Security Management System - A systematic approach to managing sensitive company information through people, processes, and technology. Required for ISO 27001 certification and includes policies, procedures, risk assessments, and continuous improvement.

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Statement of Applicability (SoA)

A key ISO 27001 document that lists all 93 controls from Annex A and indicates which are applicable, which are implemented, and justification for any exclusions. Required for certification.

Stage 1 Audit

The first phase of ISO 27001 certification where auditors review documentation to verify ISMS readiness. Covers policies, risk assessment methodology, Statement of Applicability, and management commitment. Identifies gaps before Stage 2.

Stage 2 Audit

The main ISO 27001 certification audit where auditors verify controls are implemented and operating effectively. Includes interviews, evidence review, and testing. Results in certification if passed.

Surveillance Audit

Annual audits in years 2 and 3 of the ISO 27001 certification cycle. Shorter than initial certification, they verify continued compliance and continuous improvement of the ISMS.

Annex A Controls

The 93 security controls organized in 4 categories (Organizational, People, Physical, Technological) that organizations select from when building their ISO 27001 ISMS. Not all controls are mandatory - selection is risk-based.

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Certification Body

An accredited organization authorized to conduct ISO 27001 audits and issue certificates. Must be accredited by a national accreditation body (e.g., UKAS in UK, COFRAC in France) to ensure audit quality.

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Security Controls

10 terms

Common security and technical control terminology

MFA / Multi-Factor Authentication

A security mechanism requiring two or more verification factors to access an account or system. Typically combines something you know (password), something you have (phone/token), or something you are (biometrics). Required for SOC 2 compliance on all critical systems.

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Encryption at Rest

The practice of encrypting stored data (in databases, file systems, backups) so it cannot be read without the decryption key. Standard is AES-256. Required for SOC 2 and most compliance frameworks.

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Encryption in Transit

The practice of encrypting data as it moves between systems or networks using protocols like TLS 1.2+. Protects against man-in-the-middle attacks. Required for all external connections in compliance frameworks.

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Penetration Testing

Authorized simulated cyber attacks performed by security professionals to identify vulnerabilities before malicious hackers do. Typically 20+ hours of manual testing. Required annually for SOC 2; not required for ISO 27001.

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Vulnerability Scanning

Automated tools that scan systems, applications, and networks for known vulnerabilities. Should run regularly (weekly or on code changes). Complements but does not replace penetration testing.

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RBAC / Role-Based Access Control

A method of restricting system access based on user roles rather than individual permissions. Implements least privilege by granting only the access needed for each role. Core requirement for SOC 2 and ISO 27001.

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Least Privilege

The security principle that users and systems should have only the minimum access necessary to perform their functions. Reduces attack surface and limits damage from compromised accounts.

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MDM / Mobile Device Management

Software that enables organizations to secure, monitor, and manage employee mobile devices and laptops. Can enforce encryption, remote wipe, and security policies. Required for endpoint security in most compliance frameworks.

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EDR / Endpoint Detection and Response

Security technology that monitors endpoint devices (laptops, servers) for suspicious activity, detects threats, and enables rapid response. More advanced than traditional antivirus.

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SIEM

Security Information and Event Management - A system that aggregates and analyzes log data from across an organization's IT infrastructure to detect security threats and enable incident response.

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Compliance & Governance

10 terms

General compliance and governance terminology

Compliance Framework

A structured set of guidelines, controls, and best practices that organizations follow to meet regulatory requirements or industry standards. Examples: SOC 2, ISO 27001, GDPR, HIPAA, PCI DSS.

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vCISO

Virtual Chief Information Security Officer - An outsourced security executive who provides strategic security leadership on a part-time or fractional basis. Cost-effective alternative to full-time CISO for startups and SMBs.

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Risk Assessment

The systematic process of identifying, analyzing, and evaluating security risks to an organization's information assets. Required for both SOC 2 and ISO 27001. Includes threat identification, vulnerability assessment, and impact analysis.

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Learn more: ISO 27001 Risk Assessment

Risk Register

A documented list of identified risks including their likelihood, impact, risk level, treatment decision, controls applied, and residual risk. Central document for risk management in ISO 27001.

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Control

A safeguard or countermeasure implemented to reduce risk to an acceptable level. Can be technical (firewalls, encryption), administrative (policies, training), or physical (locks, cameras).

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Evidence Collection

The process of gathering documentation and proof that controls are implemented and operating effectively. Can be automated through integrations or manual through screenshots, logs, and documents.

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Learn more: SOC 2 Evidence Collection

Access Review

The periodic review of user access rights to ensure they remain appropriate. Typically conducted quarterly. Verifies least privilege is maintained and removes inappropriate access.

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Incident Response

The organized approach to detecting, responding to, and recovering from security incidents. Includes preparation, detection, containment, eradication, recovery, and post-incident review phases.

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Business Continuity

The capability to continue essential business functions during and after a disaster or disruption. Includes Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP).

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Vendor Risk Management

The process of identifying, assessing, and mitigating risks associated with third-party vendors who have access to your data or systems. Required for SOC 2 (CC9) and ISO 27001 (Supplier Relationships).

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Other Frameworks

8 terms

Additional compliance frameworks and standards

Cyber Essentials

A UK government-backed cybersecurity certification scheme with 5 technical controls: Firewalls, Secure Configuration, Security Updates, User Access Control, and Malware Protection. Required for many UK government contracts. Valid for 12 months.

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HIPAA

Health Insurance Portability and Accountability Act - US legislation that sets standards for protecting sensitive patient health information (PHI). Applies to healthcare providers, health plans, and their business associates.

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PCI DSS

Payment Card Industry Data Security Standard - Security standard for organizations that handle credit card data. Required for any business that stores, processes, or transmits cardholder data. 12 requirement categories.

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DORA

Digital Operational Resilience Act - EU regulation requiring financial entities to ensure they can withstand, respond to, and recover from ICT-related disruptions. Effective January 2025.

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NIS 2

Network and Information Security Directive 2 - EU directive expanding cybersecurity requirements to more sectors including digital infrastructure, ICT services, and public administration. Broader scope than NIS 1.

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HDS

Hébergeur de Données de Santé - French certification required for hosting health data. Based on ISO 27001 with additional healthcare-specific requirements. Required for any organization hosting French patient data.

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SOC 1

System and Organization Controls 1 - An audit report focused on internal controls relevant to financial reporting. Used by service organizations whose services affect their customers' financial statements. Different from SOC 2 (security controls).

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Learn more: SOC 1 vs SOC 2 vs SOC 3

SOC 3

A publicly distributable version of the SOC 2 report. Contains the auditor's opinion but less detail than SOC 2. Used for marketing purposes when the full SOC 2 report cannot be shared.

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Learn more: SOC 1 vs SOC 2 vs SOC 3

Learn More

What is SOC 2?

Complete guide to SOC 2 compliance, including costs, timeline, and requirements.

What is ISO 27001?

Everything you need to know about ISO 27001 certification and ISMS implementation.

What is GDPR?

Guide to GDPR compliance for startups, including key requirements and terminology.

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