What is Environmental Audit?

Environmental Audits are very important, especially if we want a healthy and safe environment for your organization. Nowadays, almost everyone is concerned about the environment and its safety. Consequently, the organizations are under high pressure for minimizing the harmful effects of their activities on the environment.

Environmental audit provide your organization with third-party verification and reviewing of your environmental initiatives and improvements. The experienced environmental auditors of the particular certification body that you will choose, will guide you to work on maintaining lower energy and raw materials use, minimizing waste and pollution, and preventing risks of accidents and emergency situations. Your business operations will not only be environmentally sustainable, but it will also result to be more efficient and productive.

Benefits of an environmental audit:

• This helps you to safeguard the environment and preserve the natural resources that are very much essential for maintaining a healthy environment in your organization.
•  It can also assist you to identify and address actual or potential problem areas.
•  It can help your organization in reducing cost expenses and minimizing organizational waste and other activities.
•  It helps you to be up-to-date with all the required information to stay in compliance with the current environmental laws.
•  It helps you to prove that your organizational processes are totally environment friendly and assure environmental protection and safety.

Process of Environmental Audit:

1. Fill the application form

You will be required to fill the application form provided by us. This form will seek information about the type of your work, the size of your organization, etc.

2. Review of the application

Our operations team will review every aspect of your organization by analyzing the information provided by you. On its basis, we will quote the best price for you

3. Performance of the audit

One of our auditors will visit your organization and conduct documentation reviews, walkthroughs, inspections, and interviews (as and when required).

4. Report Submission

Based on the audit, the auditor will submit a detailed report of the same.

Types of Environmental Audit

There are three types of Environmental Audits. These are:

1. Environmental Compliance Audits – It reviews an organization’s environmental performance and environmental responsibility. It ensures that an organization adheres to all the laws, regulations, guidelines, policies and procedures.

2. Environmental Management Audits – Environmental Management Audits Evaluate EMS and ensure the efficiency of the system. It helps the organization to understand its performance on its own environmental performance standards. It reviews and evaluates the organization’s environmental legal requirements and assesses compliance with those requirements.

3. Functional Environmental Audits – Functional Environmental Audits are conducted to evaluate compliance with the specific aspects and ensure implementation of corrective actions. It evaluates the effect of a particular activity or process.

Phases of Environmental Audit

Environmental Audit consists of three phases. These are:

phase of environmental audit

1. Pre-Audit – It includes:

Creation of an Auditing team
Construction of an Audit plan
Documentation review- It includes

1. Pre-Audit – It includes:

Creation of an Auditing team
Construction of an Audit plan
Documentation review- It includes

– Permit application
– Records related to production
– Reports
– Reports of previous audits(if any) along with proof of the corrective actions taken

Preparing a list of possible questions and follow-ups related to prior audits conducted
Filing the ‘Disclosure of Violation Table’ of identified issues

2. Audit – It includes:

Setting ground rules
Determining solutions for the identified issues
Regular meetings to document data
Evaluation of the following documents

– Environmental policies
– Compliance
– Reports related to training
– Monitoring and storing records of Air, Water and Noise pollution
– Determining the emergency response process
– Addressing environment-related complaints
– Evaluating documents to ensure legal compliance

Site inspection
Evaluating operations to ensure compliance
Collecting samples if required
Cross-examining EHS personnel, operation, management, maintenance and policies
Identifying issues of concern
Conduction of a closing meeting enlisting and discussing all the identified issues and implementing corrective actions

3. Post-Audit – It includes

Preparation of Environment Audit reports and the Disclosure of Violation Table
Listing identified issues and concerned areas
Listing action taken and required follow-ups

What is Energy Audit?

Energy Audit is a process in which all the energy flow in the system is identified and quantification of energy usage according to its discrete function is done. It aims to balance the input and output of energy. Along with helping in improving the operating and maintenance practices of the system, Energy Audits helps in pollution control, cost optimization, and other safety aspects.

An energy audit helps in shielding an organization from fluctuation in energy cost availability. It also helps in deciding appropriate energy mix, enables reliability of energy supply, and encourages the usage of better equipment and technology for energy conservation.

Why Energy Audits ?

• It reduces energy losses up to 80% which translates to savings in energy cost by 7% to 10%.
• It assists in saving energy with the least investment or investment with good ROI.

What benefits the Energy Audits can bring to business?

• Reduce energy costs of the organization.
• With reduced energy cost, the production cost is reduced, which makes the organization more competitive.
• Dependence on imports for energy is reduced.
• Reduce pollution and environmental damage.
• Energy security is increased.

Applicable to :

Cement, Iron and Steel, Sugar, Fertilizer, Pharmaceuticals , Paper and Pulp, high-rise buildings, Power Plants, malls, commercial establishments, hospitals, and IT companies Facility management companies.

Types of Energy Audit:

Preliminary Energy Audit : It is essentially a data-gathering exercise in the preliminary stage, as well as its analysis. It uses just the available data and limited diagnostic instruments for the audit.

Detailed Energy Audit : The detailed audit can be understood as the verification, monitoring, and analysis of the use of energy, and suggest an action plan for reducing the energy consumption through a technical report. Thus, it goes beyond quantitative estimates. The detailed energy audit is performed after the preliminary energy audit. Here, sophisticated instrumentation such as flow meter, flue gas analyzer. and scanner is used for computing energy efficiency.

Scope of work for detailed Energy Audit:

• Data Collection,
• A B C Analysis,
• Field Study,
• Data Collation and Analysis,
• Report Preparation and submission.

Areas covered:

Electrical utility

Thermal utility

What is Safety Audit?

A safety audit checklist an organization’s health by conducting an in-depth and impartial review of its health and safety programs and processes. The safety audit report highlights the effectiveness of the safety programs of the organization as well as their reliability in ensuring a safe work environment.

Types of Safety Audits

The safety audit helps an organization evaluate its safety program, and there are three types of safety audits. These are:

Compliance Audit – Compliance audit reviews and evaluates the organization’s compliance with all the laws and regulations related to workplace safety.

Program Audit – It evaluates the effectiveness of a safety program, as it reviews all the safety programs and their practical implementation.

Management Audit – It is a combination of compliance audit and program audit and simultaneously reviews the organization’s safety policies. It takes employe        feedback to gain a better understanding of the safety measures and evaluates the organization’s compliance with Occupational Health and Safety Management System.

The Safety Audit Checklist

A safety audit checklist aims to detect the areas of potential risks and hazards associated with workplace safety. The safety audit checklist is as follows :-

• Evaluating compact spaces, height areas and restricted areas.
• Review electricity, compressed air spaces and slippery areas
• Detecting the existence of harmful gases, asbestos, dust and airborne particles.
• Review risks associated with working around water, vehicular movement, manual handling, and overhead hazards.
• Defining risks level in the category of likelihood, severity and risk rating.
• Recommending control measures for common hazards and risks.

Who Needs Safety Audit Checklist

The safety audit checklist is significant for almost every organization. Because of the following reasons:

• It applies to almost every organization irrespective of size, nature and location. The following organization need a safety audit checklist –

               – Vendors

               – Manufacturers

               – Retailers

               – Information Technology Industry

               –  Educational institutions

• Helps organizations in avoiding regulatory fines and penalties due to non-compliance as it reviews an organization’s compliance with the Occupational Health and Safety Management System and other regulations and standards related to work safety.

What are the benefits of safety audits of an organization?

Although every safety audit is different as it varies from one organization to another. With safety audits, your organization can be benefited in the following ways :-

• Tracking of the effectiveness of the organization’s safety programs.
• Compliance with regulatory and industry requirements regarding the health and safety of the organization.
• Identification and assessment of the potential hazard and preparation of their prevention and mitigation procedures.
• Establishment of communication and emergency procedures.
• Comprehensive and effective safety training for the employees.
• Alignment of safety program with the company’s goals.

What to Include in Your Checklist

The safety audit aims to identify hazards and risks related to workplaces and suggest appropriate controls to create safe and healthy workplaces. An organization needs to include the following details in its checklist : –

Work Process –  It helps users to identify the risk associated with the processes and procedures and demonstrates that your organization implement effective controls to ensure the safety of the employees.

Fire Emergency –  An organization must include safety measures to prevent fire hazards and formulate an adequate evacuation plan.

Loading and Unloading –  If the organization deals in the regular loading and unloading of products, then it needs to review processes and procedures to ensure safety during the process.

Lightening and Electrical –  Adequate lighting is necessary to maintain workplace safety as it impacts productivity and safety.

Tools and Machinery –  If your organization deals with heavy machinery, vehicles and tools, then it requires implementing appropriate tools to ensure workplace safety.

Process of safety audit:

1. Fill the application form – You will be required to fill the application form provided by us. This form will seek information about the type of your work, the size of your organization, etc.
2. Review of the application – Our operations team will review every aspect of your organization by analyzing the information provided by you. On its basis, we will quote the best price for you.
3. Performance of the audit – One of our auditors will visit your organization and conduct documentation reviews, walkthroughs, inspections, and interviews (as and when required).
4. Report Submission – Based on the audit, the auditor will submit a detailed report of the same.

What is Good Manufacturing Practice GMP Certification ?

Good Manufacturing Practice (GMP) is a certification of proof of maintaining consistency in the production of goods as per the quality standards. It helps in minimizing the risks in any stage of the production that cannot be eliminated through testing the final product.

GMP overviews all the aspects of production, from raw materials to production units, equipment, training, and personal hygiene of the staff. The quality of the finished product can be influenced by detailed, written procedures. A systemized documentation acts as proof that the procedures in the manufacturing process are followed consistently.

The GMP Certification provides a framework for manufacturing, testing, and assuring the quality and safety of food and other products. There are many countries that have put forward legislation according to which the food, pharmaceutical, and medical device manufacturers should follow GMP procedures and create their own guidelines in order to be compliant with the legislation.

The common basic principles of all guidelines are as follows:

Hygiene : The manufacturing facility must be clean and hygienic.

Prevention of cross-contamination of food or drugs from adulterants by maintaining controlled environmental conditions.

A clear, defined, and controlled manufacturing process. Manufacturing processes are clearly defined and controlled. Validation of all critical processes are done to ensure consistency and compliance.

Evaluation of changes in the manufacturing processes that are kept under control.

Clarity and unambiguity in written instructions and procedures.

Training of operators to carry out the procedures and document them.

Either manual or instrumental records are made during the manufacture to demonstrate that the right steps were taken in order to ensure the quality and quantity of the products as per the expectation. Any deviation is investigated and documented.

Manufacturing and distribution records should be maintained in order to ensure the traceability of the product or batch.

Minimizing the risk to the quality of products when they are distributed.

There should be an availability of a system to recall any batch from sale or supply.

Complaints about marketed products are evaluated, the causes of defects are analyzed, and appropriate measures are taken so that the recurrence of defects can be prevented.

The ultimate goal of implementing GMP in any organization is to safeguard the health of customers by producing good quality food, medicine, medical devices, active pharmaceutical products, and other products.

Even if the product passes all the specification tests, it is still deemed as “adulterated” if the manufacturing facilities do not comply with the GMP guidelines.

GMP Certification guidelines are general principles that must be followed during the manufacturing processes. They are not prescriptive in nature. It is the responsibility of an organization to set up GMP guidelines for the purpose of their quality program. It is the company’s responsibility to determine the most effective and efficient quality process.

Benefits of GMP Certification

It demonstrates the organization’s credibility in ensuring product quality and safety.

Develops awareness and habits among the employees for the purpose of good production/operation.

Reduction of safety risk

Timely detection of problems in production and management as well as a reduction in cost.

Better understanding and compliance with the relevant regulations

Enhancement of international credibility and image

Improvement in customers’ confidence in the organization.

Frequently Asked Questions about Good Manufacturing Practice (GMP)

Question : What is Good Manufacturing Practice (GMP)?

Answer : Good Manufacturing Practices or GMP is a system that consists of processes, procedures and documentation that ensures manufacturing products, such as food, cosmetics, and pharmaceutical goods, are consistently produced and controlled according to set quality standards.

Question : When Did The Current Code Of GMP Become Mandatory?

Answer : The current Code of GMP was introduced on 29 July 2009 with a transition period up to 30 June 2010. It became mandatory from 1 July 2010.

Question : What is the primary objective of Good Manufacturing Practice (GMP)?

Answer : The primary objective of GMP is to reliably deliver great medications or clinical gadgets that fulfill the global guidelines required for capably oversaw medicinal services. Procedures utilized in manufacture are deliberately controlled, and any progressions to the procedure must be assessed.

Question : What is the difference between GMP and cGMP?

Answer : GMP: GMP is the part of Quality assurance which ensures that products are consistently produced and controlled to the quality standards appropriate to their intended use and as required by the marketing authorization. GMP are aimed primarily at diminishing the risks inherent in any pharmaceutical production. Such risks are essentially of two types: Cross-contamination (in particular of unexpected contamination) and Mix-ups (confusion). cGMP: Current Good Manufacturing Practices. This means any procedure / system adopted by the manufacturer which proves to be necessary and important for identity, strength and purity of a product.

Question : Which information should master document carry on every page not just one of the pages to meet GMP ?

Answer : Page number, document reference number and authorizing signatures.

Kosher Certification originates in the Hebrew word “Kasher” or “Kosher” which means pure and suitable for human consumption. Kosher foods must comply with kashrut rules as laid down in the Torah. KOSHER foods fall into various categories such as par-eve, dairy, and animal products.

The only meat that is derived from animals that have split hooves and chew the cud is permissible under KOSHER and this includes cows, sheep, and goats. Birds may be consumed but only chicken, ducks, geese, and turkey. All such animals must be slaughtered in a prescribed way under the supervision of a Schochet who is trained in KOSHER Certification rituals.

Thereafter the veins and blood must be removed by soaking in water and rubbing with salt only after which it is declared fit for consumption. Even utensils that are used in slaughter, cleaning, and preparation must be KOSHER Certification and specifically designated for the purpose. Kosher does not permit the mixing of animal and dairy products and utensils for both must be kept separate.

What is CMMI Certification?

The Capability Maturity Model Integration, also known as CMMI, provides a framework for the organisation to enhance its services and quality of products. It focuses on leveraging your current business strategy, identifying problem areas, developing tools, and creating models for current and future processes.

History of CMMI Certifications

The Software Engineering Institute at Carnegie Mellon University, USA, invented the CMMI model as a procedure to improve processes and ease risks related to software, product and service development. U.S. Department of Defence created this model to monitor the quality and capability of their software providers, but this model has inflated worldwide. Currently, the CMMI model is directed by the CMMI Institute, which was acquired by the ISACA in 2016.

Importance of CMMI Maturity Level Certifications for Companies or Organisations

It proposes training programs for professionals and guides them to improve the organisation’s development processes. It helps organisations to enhance, build and measure their performance on different parameters.

It is a conduct and procedure model that identifies and resolves process issues, minimizes risk, and promotes building a corporate culture. It addresses three areas such as Product and service expansion, Service building and product and service accession.

The CMMI model incorporates multiple CMMIs and intents to deliver a single improvement framework to the industry to enhance processes and services. CMMI version 1.1 was terminated in 2002, and currently, version 2.0 is being operated by the organizations. Each version of CMMI seeks to be more coordinated and comprehensive.

Benefits of CMMI Level 3 Certifications

Assures better quality: One of the most significant concepts of CMMI is repeatability. It aims at discovering and employing processes that are easily repeatable and consistently maintain product quality.

Less time-consuming: It provides quick and efficient delivery of products and services to remove time constraints.

An improvement oriented: It frequently analysis the operations and practices to remove entities causing undesired results.

Helps to reduce cost: It encourages continuous planning and direction to lower costs.

Improves ROI(Return on Investment): It reduces errors and employs competent practices, which reduces costs and enhances ROI.

It aims at providing high-quality, timely, and required products and services. CMMI model is an integrated set of best practices that improves an organisation’s ability and meet customer requirements. It operates on six capability levels and five maturity levels.

Get CMMI Level 3 & Level 5 Certifications

CMMI Capability levels are a set of practices that draw a path for an organisation to improve its ability and capability related to process areas. These CMMI certification training levels are cumulative, which means higher capability levels include the attributes of the lower levels. These are labeled from level 0 to level 5.

Level 0: Incomplete – It refers to the incomplete process, which shows a delay in setting one or more goals of the process area. It affects the organisation’s ability and shows inconsistent performances.

Level 1: Initial – It concentrates on performance issues and prompts the formulation of appropriate practices to meet the intent process area.

Level 2: Managed  – It is a complete set of practices and monitors the organisation’s performance. It concentrates on project performance objectives and does not use the organisation’s assets.

Level 3: Defined – It uses the organisation’s assets and focuses on attaining project performance and organizational performance objectives.

Level 4: Quantitatively Managed – Quantitative objectives are established for process and quantity, and criteria are defined for managing the process.

Level 5: Optimising – It continuously focuses on improving project and organisational performance objectives.

CMMI Certifications Levels Online

CMMI certification levels, also known as Maturity levels, are a set of practices that guides toward achieving a mature software process.

There are six maturity levels, and each maturity level builds on the previous one and adds new functionality to it.

Level 0 : Incomplete– Ad hoc and unknown – Processes are usually Ad hoc and unknown. The performance depends on the individual ability as the industry does not provide a needed environment.

Level 1 : Initial- Unpredictable and reactive – At this level, the work gets concluded, but often it takes more time and money than needed.

Level 2 : Managed- Managed on the project level – The projects are performed, measured, and controlled at this level. It also ensures that all the requirements and services are well planned and managed.

Level 4 : Quantitatively Managed- Measured and controlled – It is a sub-process that significantly notifies about the industry’s performance on the set objectives. It stresses support-based decision-making to enhance current and future operations.

There are six Capability Maturity Model Integration levels, but Level 3 and CMMI Level 5 certification are the most important ones, let’s understand why.

What is CMMI Level 3 Certification?

CMMI Level 3: Defined- Proactive, rather than reactive –

It is achieved when a business successfully meets SCAMPI A proposal, which acts as a hallmark for an organisation. It must be performed by a confirmed lead appraiser, who should be in the location evaluation group.

SCAMPI A appraisal verifies that the business is operating at CMMI level 3 certification. It confirms that the industry is following all the standards and objectives.

It is an indicator of the industry’s efficiency and implies that an organisation is working on all the standards set to meet cmmi certification process areas and cmmi certification requirements.

What is CMMI Level 5 Certification?

Level 5: Optimising- Stable and flexible

It focuses on persistent process enhancement to implement new techniques and methods that can be enforced to make the organisation more efficient.

CMMI level 5 appraisal indicates that the business is at a phase of incomparable stability. It provides the organisation with more flexibility to implement new objectives related to the industry’s needs. It ensures that the business is operating and executing required practices to meet process areas.

It also provides a stage for innovation and agility in the organisation.

What is SCAMPI?

The Standard CMMI Appraisal method for process improvement (SCAMPI) provides a framework related to the Capability maturity model. It applies to both internal and external capability determinators.

The SCAMPI family of appraisals possesses classes A, B, and C appraisal methods.

SCAMPI A:  It is the only method that can result in a rating. It is one of the most rigorous methods. It confirms that the industry is following all the standards and objectives.

SCAMPI B:  It is less formal than SCAMPI A as it helps to discover the objectives for the CMMI development level. It assists the industry with a superior notion to remain in the development procedure.

SCAMPI C: This is an evaluation technique. It is much shorter and more adaptable and affordable.

Frequently Asked Questions (FAQs) about Capability Maturity Model Integration (CMMI) 3 Certifications

Question : What is CMMI and what’s the advantage of implementing it in an organization?

Answer : CMMI stands for Capability Maturity Model Integration. It is a process improvement approach that provides companies with the essential elements of an effective process. CMMI can serve as a good guide for process improvement across a project, organization, or division.

Question : What is the Difference Between CMM and CMMI?

Answer : CMM measures the maturity level of an organization by determining if an organization completes the specific activities listed in the Key Performance Areas (KPA), oblivious to whether the completion of such activity leads to the desired result. CMMI (released in 2002) was the successor of the CMM model with more mature and defined set of guidelines and a combination of the components of the individual CMM models. CMMI is also an activity-based approach but the major difference is that CMMI takes a more result-oriented approach when defining and measuring Key Performance Areas.

Question : Does everyone in an organization need formal CMMI Development training?

Answer : The short answer is, no. The only required personnel that need formal training are those that plan to participate as an Appraisal Team Member (ATM).

Question : What are the different models in CMMI?

Answer : There are two models in CMMI. The first is “staged” in which the maturity level organizes the process areas. The second is “continuous” in which the capability level organizes the process area.

Question : What are some of the changes with the new CMMI V2.0?

Answer : The changes are many, but I’ll cover a few of them here as There is no book. The new model is presented entirely online in the “Model Viewer.” Using the model is no longer free. There have been a few nomenclature changes: Process Areas are now Practice Areas. Specific Practices are now just practices, Constellations are now called Views, Sub-Practices are now called Example Activities”. SCAMPI A is gone – now it’s “Benchmarking Appraisal.”

What is GDPR?

GDPR stands for General Data Protection Regulation, which is the heart of European legislation on digital confidentiality. It requires companies to safeguard the personal information and privacy of EU citizens for transactions carried out within the EU Member States. And non-compliance could end up costing businesses.

The European Parliament approved the GDPR in April 2016, replacing an outdated 1995 data protection directive. It includes provisions that require companies to safeguard the personal information and privacy of EU citizens carried out within EU member states. In addition, it regulates the exports of personal information outside the European Union.

The provision is uniform across all the 28 EU member states, which means the business only has one standard to comply with data privacy within the European Union. However, this will require most businesses to invest massively in order to meet and manage it.

Key benefits of GDPR Compliance:

Improvement in customers’ confidence : It will show to customers that the organization is a good custodian of personal information.

Greater security of the data : GDPR compliance provides a foundation for greater data privacy and security.

Reduction of maintenance costs : GDPR compliance can help your organization to reduce its costs by encouraging you to remove any existing information inventory software and applications which are no longer relevant to your company.

Improved alignment with technological change : As an extension of GDPR compliance, your organization will enhance the security and privacy of its network, devices, and applications. To check conformity with the requirements the organization can use GDPR compliance Checklist.

Better decision-making : Organizations no longer can make automated decisions based on an individual’s personal information.

Enhancements to Data Management : It audits all the relevant information you have, which enables you to better organize and store personal information. GDPR compliance enhances the credibility and reliability of an organization

What is the purpose of the GDPR Certification?

The quick answer to this is the concern of public security and privacy. Europe has long had stricter rules about how companies use their citizens’ personal inputs. It replaces the European Data Protection Directive, which came into force in 1995. It was long before the Internet became the online business center, just as it is nowadays. Therefore, the directive security is outdated and does not address the many ways in which input is stored, collected, and transferred today.

What types of personal data does the GDPR safeguard?

GDPR certification applies to all industries, large and small, irrespective of nature and location. The types of personal data protected by GDPR Certification are:-

Identifies details such as name, address, and identification numbers.

Website data such as location, IP address, cookies, and RFID labels.

Health and genetic evidence.

Biometric information.

Racial or ethnic information.

Political opinions

Sexual orientation

What businesses are affected by the GDPR?

Any business which processes personal input concerning EU citizens in EU states must comply with the General Data Protection Regulation, although if they don’t have their commercial presence within the EU. The specific requirements the companies must meet are:

• A presence in an EU Member State.
• No presence in the EU, but it handles European residents’ personal information.
• Over 250 staff members.
• Less than 250 employees, but its processing impacts the rights and liberties of input subjects, is not casual or includes certain types of sensitive personal inputs. That means practically every company. A PwC survey found that 92% of US companies consider the General Data Protection Regulation (GDPR) a top priority for protecting.

What impact does the GDPR have on the contracts with third-party/customers?

The GDPR Certification imposes an equal responsibility for data controllers (an organisation that owns the information) and data processors (an external organisation that helps to manage the information). A non-compliant third-party processor means your organisation is out of compliance. The new regulations also provide stringent rules in order to report non-compliance that all members of the chain must be able to comply with. Organisations must also notify customers of their GDPR entitlements.

This means all existing contracts (e.g., cloud service providers, SaaS service providers, or payroll vendors) and clients need to clarify responsibilities. The revised contract must also set out coherent processes for information management and protection and how breaches are reported.

Who within the organisation will be in charge of GDPR compliance?

The General Data Protection Regulation defines several roles to ensure compliance: Data Protection Officer (DPO), Data Controller, and processors. The controller defines the way personal inputs are processed and the purposes for which they are processed. It is also the comptroller’s responsibility to ensure compliance by external contractors.

The information processors may be internal groups for maintaining and processing personal input records or any outsourcing firm that carries out these activities. It holds processors responsible for violations or nonconformities. As a result, it is possible that your company and your operating partner, such as a cloud service provider, will be responsible for penalties even if the fault lies entirely with the operating partner.

It requires the controller and the processor to appoint a DPO to supervise the data security strategy and compliance with the General Data Protection Regulation. Businesses should have a DPO if they operate or store large amounts of input on EU citizens, process or store specific personal input, monitor information subjects regularly, or be a public authority. Certain public entities, such as law enforcement organisations, may be exempted from the DPO requirement.

Frequently Asked Questions about General Data Protection Regulation (GDPR)

Question : What is GDPR?

Answer : GDPR stands for General Data Protection Regulation, which is the heart of European legislation on digital confidentiality. It requires companies to safeguard the personal information and privacy of EU citizens for transactions carried out within the EU Member States.

Question : What is the purpose of GDPR?

Answer : The purpose of the GDPR is to provide a set of standardised data protection laws across all the member countries. This should make it easier for EU citizens to understand how their data is being used, and also raise any complaints, even if they are not in the country where its located.

Question : What is GDPR Compliance?

Answer : The General Data Protection Regulation (GDPR) is legislation that updated and unified data privacy laws across the European Union (EU). GDPR was approved by the European Parliament on April 14, 2016 and went into effect on May 25, 2018. GDPR replaces the EU Data Protection Directive of 1995.

Question : What is GDPR equivalent in India?

Answer : India is now well equipped to legislate the much needed Personal Data Protection Act (PDPA), which would control the collection, processing, storage, usage, transfer and protection of Indian citizens. This act is the need of the hour and is a much needed development for global managers.

What is a SOC Report?

SOC stands for System and Organisation Controls. A SOC compliance ensures that an organisation follows best practices related to protecting its customers’ data before entrusting a business function to that organisation. These best practices are in the areas of finance, security, processing integrity, privacy, and availability. The reports which are generated and approved by the third party provide independent assurance and help clients/partners understand the potential risks associated with collaborating with the organisation that has been assessed.

You may choose to pursue SOC compliance because you are working on signing a potential client that values your security or your own company works with sensitive data and you wish to be proactive in implementing security power.

Based on the information required and the type of organisation involved, there exist multiple versions of SOC reports, they are SOC 1, SOC 2, and SOC 3.

SOC 1 (System and Organisation Controls 1)

Service and Organisation Control 1, also known as SOC 1. It is documentation prominently designed for institutions offering outsourcing technology services and can impact the financial security of their clients. It benefits companies providing outsourcing services, as it helps them to acquire leverage in the industry. It evaluates the internal controls of the industry related to the financial statements of its customers. It functions as a shred of evidence and assurance for the potential customers related to the security and transparency of the internal operations of the industry.

SOC 1 Certification is a piece of documentation which works as a piece of evidence that a SOC 1 audit was conducted on the organisation’s services concerning clients’ financial reports and information. It secures that the company follows best practices to safeguard customers’ data regarding finance, security, privacy and processing integrity. It is also helpful when a client asks to audit the company without SOC 1, this could be a costly and time-intensive process.

The report prepared after conducting SOC 1 audit is called SOC 1 report. It was previously known as SAS 70 (Statement on Auditing Standards 70), but eventually, it was replaced by SSAE 16 (Statements on Standards for Attestation Engagements no.16)

SOC 1 Report

SOC 1 report is in compliance with Internal Control over Financial Report (ICFR). It is documentation of the internal power that may be relevant when conducting an audit of a client’s financial statements.

There are two types of SOC 1 reports:

TYPE 1: It indicates how efficiently the industry can design its internal financial controls. It lays emphasis on the design of controls in order to accomplish the associated objectives, including the opinion of the service auditor, the management statement, and the description of the system. This describes the power over service units at a particular point in time.

TYPE 2: It demonstrates that the company’s controls operate effectively. It emphasizes the design and operating efficiency of power for at least six months, including all the information in Type 1 with the addition of the tests performed by the service audit. According to auditors, this type provides assurance over the controls of an organisation.

SOC 1 Certification assures that the organization providing services keeps information safely and securely concerning their customers.

An organization has to comply with SOC 1 to show adherence to the objective if the company deals with public trading.

SOC 2 (System and Organisation Controls 2)

SOC 2 is an auditing procedure developed by the American Institute of CPAs (AICPSs), which provides guidelines to the organisation on how to manage customer data. SOC 2 focuses only on security, whereas SOC 1 measures the effectiveness of an organisation on internal controls. It is designed for organisations that store company and customer data in the cloud or companies that offer outsourcing services to third-party vendors such as SaaS, Cloud computing providers.

Initially, it was launched in 2013 with the purpose to use in the domestic market only, but now it is accepted all over the world.

It ensures that your service provider securely handles the data and privacy of the clients and delivers trust that your data will not be at risk. A third-party audited accreditation like SOC 2 is a minimal requirement for the service provider companies.

If a company does not process financial data but deals with other types of data, then it can go for SOC 2 Certification.

It defines criteria for managing a database established on ‘Five service principles’ renamed to ‘Trust service criteria’ in 2018

SOC 2 reports

SOC 2 reports are unique to each company as every organisation controls and yields to one or other trust service criteria. It defines the criteria for managing client’s data on the basis of five “trusted service principles”: security, availability, processing integrity, privacy, and confidentiality. It is specific to each business unit. In accordance with specific business practices, each develops its own power to conform to one or more of the trust principles. These provide you with important information about how your service provider handles data.

The two types of SOC 2 Reports are –

These ‘Trust service criteria’ are-

Security: It protects the system and the data from unauthorized access and prevents data theft and system abuse. It focuses on managing customer privacy and integrity and prevents data breaches.

Availability: It ensures and involves security-related criteria and secures it must to available for use and operation.

Processing integrity: It works on the principle of delivering accurate data at the right place at the right time, which suggests processing should be accurate, authorised and timely.

Confidentiality: The data held by the organization is confidential, and it is the organisation’s responsibility to keep the customers’ information unharmed and protected.

Privacy: The service provider companies held covert information about the customers. The principle ensures that the statistics collected must be used, retained, disclosed and disposed of adequately.

The reports prepared after conducting SOC 2 audit are known as SOC 2 reports.

Does the SOC have the opinion of the auditor?

Yes, the SOC has the auditor’s opinion. A SOC shall contain the opinion of the auditor covering the following areas :-

If the service organisation controls are fairly described.

If the controls of the service unit are designed in an effective manner.

If the service organisation controls are operating effectively over a set period of time (only Type 2)

If the above elements have been achieved by the organisation, the auditor would provide a clean opinion. If the above has been met, but the auditor has found significant exceptions (i.e. such that an objective was not in place or was ineffective), the auditor would issue an “amended opinion“. However, if the organisation physically failed one or more of the above elements, the auditor would issue a “negative” opinion.

There are two types of SOC 2 reports:

Type 1 report- It ensures that the vendors’ controls are suitable, placed accurately and operating on trust services criteria effectively. It describes a supplier’s system and whether its design is suitable for meeting relevant trust principles on a specific date.

Type 2 report- It collects the information regarding every operation and monitors them. It focuses on the effectiveness of the controls. It describes the operating effectiveness of such systems for a specified period of time.

If an organisation holds a SOC 2 certification, it gives the customer security that the data will remain secure, hence they can provide you with their sensitive information.

It is not a legal requirement, but it gives leverage to an organisation in the industry. It protects you against data breaches and cyber-attacks and ensures privacy.

SOC 3 (System and Organisation Controls 3)

SOC 3, also known as System and Organisation Controls 3, works on the same lines as SOC 2. SOC 3 is intended for a general audience and keeps track of organisations’ security controls. It operates on Five pillars, also known as Trust service criteria(These pillars are the same for SOC 2).

Security

Availability

Process integration

Confidentiality

Privacy

The reports prepared after completing the SOC 3 audit are known as SOC 3 reports. These reports are shorter and general in nature, hence can be shared openly with the general public on the company’s website with a monogram indicating SOC 3 compliance.

SOC 3 reports

SOC 3 report is designed for Trust Service Criteria for General Use Report. It summarises the content of a SOC 2 report but excludes details of the tests performed and the results of these tests. A SOC 2 report must have been prepared to receive a SOC 3 report.

SOC for Cyber Security

Performance and reporting requirements for a review of an entity’s cybersecurity risk management program and associated controls.

Which organisation requires a SOC report?

Any service unit that requires independent validation of powers relevant to the manner in which it transmits, processes, or stores customer data may require SOC compliance. Furthermore, due to the increased scrutiny of third-party controls, clients are increasingly demanding SOC Certifications from their organisations.

What determines the cost of a SOC report?

Achieving SOC compliance may not be costly, as soc 1 certification cost mostly depends on many factors such as the type and number of controls in place, the system complexity, related environmental control, etc. A Type 2 is more expensive than a Type 1 due to testing levels and documentation requirements.

What is the most effective way to prepare for a SOC exam?

In almost all cases, we recommend a readiness assessment prior to a business unit commencing a SOC review for the first time. As part of a readiness assessment, we will undertake a high-level assessment of power within the scope and document our findings. This gives the concerned organisation an opportunity to fill the gaps before we start the SOC reporting process. Moreover, much of this work can be utilised in the SOC.

Does the SOC have the opinion of the auditor?

Yes, the SOC has the auditor’s opinion. A SOC shall contain the opinion of the auditor covering the following areas:

If the service organisation controls are fairly described.

If the controls of the service unit are designed in an effective manner.

If the service organisation controls are operating effectively over a set period of time (only Type 2)

If the above elements have been achieved by the organisation, the auditor would provide a clean opinion. If the above has been met, but the auditor has found significant exceptions (i.e. such that an objective was not in place or was ineffective), the auditor would issue an “amended opinion“. However, if the organisation physically failed one or more of the above elements, the auditor would issue a “negative” opinion.

Is it possible for someone to distribute a SOC for marketing purposes?

No, no one is allowed to circulate SOC 1 report and SOC 2 report for marketing purposes. In such a case, only the SOC 3 report may be distributed for marketing purposes. It is a general-use report as mentioned earlier, which means that the service provider is allowed to give this to anyone.

Frequently Asked Questions about System and Organization Controls (SOC)

Question : What is SOC 2?

Answer : SOC 2 refers to a standardized form of auditing and reporting. It assesses the state of privacy and security of a service organization when it interacts with other businesses to process client data. Formerly known as the Service Organization Controls, the SOC now represents System and Organization Controls.

Question : What Is SOC 2 Certification or Compliance ?

Answer :  Attaining SOC 2 certification means ensuring compliance. And compliance with SOC 2 comprises meeting minimum levels of maturity and fidelity across the TSC.

Question : What are the Types of SOC Reports?

Answer : There are three types of SOC reports such as SOC 1, SOC 2, and SOC 3. SOC 1 is a report on service organization controls relevant to a user entity’s internal control over financial reporting.A SOC 2 report is needed when the vendor is providing services related to data security and storage. SOC 3 is also a trust services report for service organizations. It covers the same subject matter as a SOC 2 report but with some key differences.