PYA has released a white paper that discusses the importance of the AICPA’s cybersecurity risk management framework and System and Organization Controls for Cybersecurity in assessing the strength and effectiveness of cybersecurity risk management programs for title and settlement companies.
A new PYA white paper outlines the American Institute of Certified Public Accountants’ (AICPA) cybersecurity risk management framework and System and Organization Controls (SOC) for Cybersecurity, and the role they play in the development of an effective cybersecurity risk management program and the assessment of cybersecurity risk readiness for title and settlement companies.
A cybersecurity breach can result in tremendous financial loss—to the tune of millions of dollars—and reputational damage— sometimes fatal—for afflicted companies. To help mitigate the risk, the AICPA released a cybersecurity risk management reporting framework last year. The framework is used as a reference point for independent certified public accountants (CPAs) to engage SOC reporting on the overall effectiveness of an organization’s cybersecurity risk management program. The SOC for Cybersecurity, when combined with the Best Practices Framework developed by the American Land Title Association (ALTA) offers many benefits over a stand-alone Best Practices certification.
According to the white paper, “Alone, the ALTA Best Practices Certification does not include this level of detailed information…With a SOC for Cybersecurity Report, not only will lenders and customers of a title and settlement company be able to see the company’s entity-wide commitment to developing effective controls over cybersecurity, lenders and customers will also have the assurance of a CPA’s independent opinion on the description and effectiveness over the entity’s cybersecurity controls.”
PYA assists title and settlement companies by conducting SOC 2 and SOC cybersecurity risk management examinations; gap analysis to determine if an organization is ready for SOC 2 or SOC cybersecurity; and examinations to mitigate regulatory, financial, and reputational risks.