Risk Mitigation

1. Gap Analysis Before Audit

• Risk: Going straight to audit without preparation leads to gaps being discovered too late.
• Mitigation: Run an internal gap assessment (with a consultant or using a vendor platform). Fix gaps before engaging the auditor. [Before our evidence collection period] [Needs Attention]

2. Scope

• Risk: Including too many systems/processes in scope → audit complexity + higher failure risk.
• Mitigation: Define scope tightly (limit to customer-facing systems, main cloud infra, and critical processes). Avoid dragging in experimental tools or unused systems. (Defining our GCP scope is highly important and needs to get reviewed from the consultant) [Needs Attention]

3. Policy–Practice Mismatch [IMPORTANT: As everything revolved around this]

• Risk: Having written policies but not following them → non-compliance findings.
• Mitigation:
  • Write realistic policies (not just boilerplate). ->keep scope limited so that the renewal is easy, manageable
  • Train employees and ensure actual practices match.

4. Evidence Gaps

• Risk: Inability to provide consistent evidence across the audit period (Type II).
• Mitigation:
  • Vendor mostly do and must support and guide through this
  • Set up continuous monitoring instead of last-minute collection.
  • Create an evidence calendar to ensure periodic activities (e.g., access reviews every quarter)

5. Employee Awareness

• Risk: Employees unaware of compliance responsibilities → accidental violations. [Needs Attention]
• Mitigation:
  • Run security training & phishing tests.
  • Document onboarding/offboarding procedures clearly.

6. Overreliance on Vendor Tools

• Risk: Thinking platforms like Vanta/Sprinto alone guarantee SOC 2 → false sense of readiness.
• Mitigation: Treat them as tools, not substitutes for actual processes. Engage with an auditor or consultant early.

7. Auditor Selection

• Risk: Choosing an auditor not AICPA-accredited or not experienced with SaaS startups → wasted effort, report rejection.
• Mitigation: Verify auditor’s AICPA license, ask for past SaaS audit experience, and ensure they’re accepted by your target customers. Detailed :
• https://bookstack.bynry.com/books/soc-ii/page/auditor-qualification

8. Timeline Mismanagement

• Risk: Underestimating how long it takes → missed customer deadlines.
• Mitigation:
  • Plan 3–6 months for readiness. [Post policy making and outlining boundaries]
  • Type II, add 3–12 months observation window.

9. Data Security Incidents During Audit

• Risk: Breach or incident during audit period undermines credibility.
• Mitigation:
  • Have an incident response plan documented and tested.
  • Keep logs and communications clear to show proper handling.