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Security for B2B sales
As part of the 2021 Y Combinator Founder Bootcamp, Christina Cacioppo, Vanta CEO and co-founder, led a talk with a focus on Security and B2B sales. Read on for a deep dive into security reviews, vendor questionnaires, and how SOC 2 can put your company on a strong footing with customers and prospects when questions of security arise. At the end of this post we included some of the questions Christina received during Q&A and consolidated the answers for your reference.
Vendor, meet your first security review.

If you haven’t yet had a customer or prospect ask for your company’s SOC 2 or a customized security questionnaire, this scenario is on the horizon. Picture this: your company is about to close an important deal. Everything is moving along swimmingly — and then your prospect mentions the security review. If you’ve anticipated this moment, you’re positioned with resources to demonstrate proof of your company’s security policies and practices. Meanwhile, if you’re coming up against a security review for the first time — you may find that your deal is on hold while your company determines how best to prove its security.
Security reviews are becoming common practice in the sales cycle. If you’re a B2B software vendor that stores customer data, you should expect that enterprise clients will be focused on ensuring the security of their customers’ data within your information ecosystems. Enterprises are particularly attuned to the risk of a data breach, and are seeking ways to understand if your company can be entrusted with sensitive data.
How can your company create trust through the security review process?

The security review is an opportunity for your company to explain the measures you take to maintain data security. A successful security review can take a number of forms: You could spend time explaining to your prospects the security measures your company takes. You could share documentation of the security policies you’ve developed and adhere to. You could answer a vendor questionnaire developed by your prospect (and another questionnaire developed by another prospect, and so on). Or you can take the most proactive and arguably the best method of demonstrating your company’s security, embarking on a SOC 2 audit. The results of this audit will showcase your company’s security practices in a consistent format that you can share with each of your prospects.
What is a vendor questionnaire?
A vendor security questionnaire is an enterprise tool used to assess a service organization’s security practices before signing on to use their product. A vendor questionnaire can be extensive — think anywhere from 30 to 300 yes/no questions exploring the ins and outs of your company’s security program — and there’s no requirement for enterprises to utilize a standard format. (An enterprise will be better served by asking more questions of potential vendors up front, rather than learning down the road that they failed to thoroughly examine their vendors’ practices.) Your company’s CTO will usually be the party responsible for answering vendor questionnaires.
When and why should my company get a SOC 2?
Observe how your company is allocating time to proving its security, and you will understand when the scales tip toward getting a SOC 2. If you’ve been asked for proof and have been leaning on workarounds, you may eventually find that the workarounds are more time-consuming than simply going through an audit. As a startup, your time is your most valuable resource. When putting your CTO on the phone (again) to explain your company’s security practices to a new prospect turns into one time too many, then you may find it’s time for a SOC 2.
We also like to say that the best time to get a SOC 2 is as soon as you possibly can. If your company is proactive about security and audit preparation, you’ll be ready with a SOC 2 when you need it. If you’re on the road to closing a deal with a key prospect, SOC 2 can pave the way for a smooth security review and point you toward the finish line. For a deeper dive into when and why to get a SOC 2, how long it will take, and how much it costs to get SOC 2 certified, check out our Recap on SOC 2 for Scaleups.
How to turn security into a sales strategy?
Building a strong security program for your company will serve you well as you grow, no matter what. It can be more challenging to retroactively build security into your roadmap if you haven’t tackled it as a core business concern from the start. One key upside of leading with security is that you’re positioned to communicate your company’s security practices as part of your sales strategy. In whatever form your proof of security takes shape — a readiness to respond to customized vendor questionnaires, to share your policies and documentation, to put your CTO on the phone, or to let your prospect know that you’ve already conducted a security audit and are able to share your SOC 2 report then and there — your solid security practices and documented proof of security become key components in your company’s marketing toolkit.
Let’s dig into a few of the great questions that came up in the Q+A session:
How early in the life of a startup should we be looking into compliance auditing and certification?
- Your customers and prospects are your best guide on this point. When you’re in the early stages (and beyond) of building and selling a product, listen to your clients and customers to learn what they want from you. Remember that approaching security in a proactive way is a solid way to demonstrate the stability and trustworthiness of your business.
What industries can benefit from completing a SOC 2 audit?
- If your company gathers, stores, or works with any form of customer data, no matter the industry, SOC 2 certification can support your security goals. In today’s business environment, as more and more enterprises store and process data using third-party providers, a broad range of industries — from fintech to healthcare to hospitality and everything in between — now require that their vendors obtain a SOC 2 report to prove their security practices against a shared and accepted standard.
How often might a startup be asked to present a SOC 2 when dealing in the B2B space, given the wide range and type of customers?
- There are a few guiding principles to consider here. The larger the business your company is selling into, the more likely it is that security and SOC 2 will become a focal point. If the company you’re selling to has itself gone through a SOC 2 audit, they may also be more inclined to ask for and expect your SOC 2 certification as well. You’ll most likely be asked for your SOC 2 or proof of security depending on the type of data your tool stores, and the sensitivity of that data. Products seeking to operate in fintech or healthcare and to be entrusted with the sensitive data common to those spaces will find that proof of security is high on prospective clients’ radars. In other spaces, if your tool requires email access, for example, prospective customers will be eager to understand how your company will guard and preserve the security of that access.
Does Vanta or other compliance software help automate processes for HIPAA?
- Vanta includes HIPAA compliance support, and we offer guidance, information, policy templates, tracking features, and more to help your company prepare for its HIPAA audit fieldwork. We can help you utilize Vanta’s feature set to help track a range of HIPAA tasks and to further customize your HIPAA compliance approach.
Vanta is “security in a box” for companies of all shapes and sizes, trusted by hundreds for their SOC 2 preparation and more. Vanta provides a set of automated security and compliance tools that scan, verify, and secure a company’s IT systems and processes. Our cloud-based technology identifies security flaws and privacy gaps in a company’s security posture, providing a comprehensive view across cloud infrastructure, endpoints, corporate procedures, enterprise risk, and employee accounts. Vanta also offers a suite of tools streamlining the non-technical components of security tracking and audit preparation, so gathering and consolidating audit evidence is easier for both your company and your auditor. Ready to get started?
Determine whether the GDPR applies to you and if so, if you are a processor or controller (or both)
Do you sell goods or service in the EU or UK?
Do you sell goods or services to EU businesses, consumers, or both?
Do you have employees in the EU or UK?
Do persons from the EU or UK visit your website?
Do you monitor the behavior of persons within the EU?
Create a Data Map by taking the following actions
Identify and document every system (i.e. database, application, or vendor) which stores or processes EU or UK based personally identifiable information (PII)
Document the retention periods for PII in each system
Determine whether you collect, store, or process “special categories” of data
Determine whether your Data Map meets the requirements for Records of Processing Activities (Art. 30)
Determine whether your Data Map includes the following information about processing activities carried out by vendors on your behalf
Determine your grounds for processing data
For each category of data and system/application have you determined the lawful basis for processing based on one of the following conditions?
Take inventory of current customer and vendor contracts to confirm new GDPR-required flow-down provisions are included
Review all customer contracts to determine that they have appropriate contract language (i.e. Data Protection Addendums with Standard Contractual Clauses)
Review all in-scope vendor contracts to determine that they have appropriate contract language (i.e. Data Protection Addendums with Standard Contractual Clauses)
Have you performed a risk assessment on vendors who are processing your PII?
Determine if you need to do a Data Protection Impact Assessment
Is your data processing taking into account the nature, scope, context, and purposes of the processing, likely to result in a high risk to the rights and freedoms of natural persons?
Review product and service design (including your website or app) to ensure privacy notice links, marketing consents, and other requirements are integrated
Do you have a public-facing Privacy Policy which covers the use of all your products, services and websites?
Does the notice to the data subject include the following items?
Does the notice also include the following items?
Do you have a mechanism for persons to change or withdraw consent?
Update internal privacy policies to comply with notification obligations
Update internal privacy notices for EU employees
Do you have an Employee Privacy Policy governing the collection and use of EU and UK employee data?
Determine if you need to appoint a Data Protection Officer, and appoint one if needed
Have you determined whether or not you must designate a Data Protection Officer (DPO) based on one of the following conditions (Art. 37)?
If you export data from the EU, consider if you need a compliance mechanism to cover the data transfer, such as model clauses
If you transfer, store, or process data outside the EU or UK, have you identified your legal basis for the data transfer (note: most likely covered by the Standard Contractual Clauses)
Have you performed and documented a Transfer Impact Assessment (TIA)?
Confirm you are complying with other data subject rights (i.e. aside from notification)
Do you have a defined process for timely response to Data Subject Access Requests (DSAR) (i.e. requests for information, modification or deletion of PII)?
Are you able to provide the subject information in a concise, transparent, intelligible and easily accessible form, using clear and plain language?
Do you have a process for correcting or deleting data when requested?
Do you have an internal policy regarding a Compelled Disclosure from Law Enforcement?
Determine if you need to appoint an EU-based representative, and appoint one if needed
Have you appointed an EU Representative or determined that an EU Representative is not needed based on one of the following conditions?
If operating in more than one EU state, identify a lead Data Protection Authority (DPA)
Do you operate in more than one EU state?
If so, have you designated the Supervisory Authority of the main establishment to act as your Lead Supervisory Authority?
Implement Employee Trainings to Demonstrate Compliance with GDPR Principles and Data Subject Rights
Have you provided appropriate Security Awareness and Privacy training to your staff?
Update internal procedures and policies to ensure you can comply with data breach response requirements
Have you created and implemented an Incident Response Plan which included procedures for reporting a breach to EU and UK Data Subjects as well as appropriate Data Authorities?
Do breach reporting policies comply with all prescribed timelines and include all recipients i.e. authorities, controllers, and data subjects?
Implement appropriate technical and organizational measures to ensure a level of security appropriate to the risk
Have you implemented encryption of PII at rest and in transit?
Have you implemented pseudonymization?
Have you implemented appropriate physical security controls?
Have you implemented information security policies and procedures?
Can you access EU or UK PII data in the clear?
Do your technical and organizational measure ensure that, by default, only personal data which are necessary for each specific purpose of the processing are processed?
Consider streamlining GDPR compliance with automation
Transform manual data collection and observation processes into continuous monitoring
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Develop a roadmap for successful implementation of an ISMS and ISO 27001 certification
Implement Plan, Do, Check, Act (PDCA) process to recognize challenges and identify gaps for remediation
Consider ISO 27001 certification costs relative to org size and number of employees
Clearly define scope of work to plan certification time to completion
Select an ISO 27001 auditor
Set the scope of your organization’s ISMS
Decide which business areas are covered by the ISMS and which are out of scope
Consider additional security controls for business processes that are required to pass ISMS-protected information across the trust boundary
Inform stakeholders regarding scope of the ISMS
Establish an ISMS governing body
Build a governance team with management oversight
Incorporate key members of top management, e.g. senior leadership and executive management with responsibility for strategy and resource allocation
Conduct an inventory of information assets
Consider all assets where information is stored, processed, and accessible
- Record information assets: data and people
- Record physical assets: laptops, servers, and physical building locations
- Record intangible assets: intellectual property, brand, and reputation
Assign to each asset a classification and owner responsible for ensuring the asset is appropriately inventoried, classified, protected, and handled
Execute a risk assessment
Establish and document a risk-management framework to ensure consistency
Identify scenarios in which information, systems, or services could be compromised
Determine likelihood or frequency with which these scenarios could occur
Evaluate potential impact of each scenario on confidentiality, integrity, or availability of information, systems, and services
Rank risk scenarios based on overall risk to the organization’s objectives
Develop a risk register
Record and manage your organization’s risks
Summarize each identified risk
Indicate the impact and likelihood of each risk
Document a risk treatment plan
Design a response for each risk (Risk Treatment)
Assign an accountable owner to each identified risk
Assign risk mitigation activity owners
Establish target dates for completion of risk treatment activities
Complete the Statement of Applicability worksheet
Review 114 controls of Annex A of ISO 27001 standard
Select controls to address identified risks
Complete the Statement of Applicability listing all Annex A controls, justifying inclusion or exclusion of each control in the ISMS implementation
Continuously assess and manage risk
Build a framework for establishing, implementing, maintaining, and continually improving the ISMS
Include information or references to supporting documentation regarding:
- Information Security Objectives
- Leadership and Commitment
- Roles, Responsibilities, and Authorities
- Approach to Assessing and Treating Risk
- Control of Documented Information
- Communication
- Internal Audit
- Management Review
- Corrective Action and Continual Improvement
- Policy Violations
Assemble required documents and records
Review ISO 27001 Required Documents and Records list
Customize policy templates with organization-specific policies, process, and language
Establish employee training and awareness programs
Conduct regular trainings to ensure awareness of new policies and procedures
Define expectations for personnel regarding their role in ISMS maintenance
Train personnel on common threats facing your organization and how to respond
Establish disciplinary or sanctions policies or processes for personnel found out of compliance with information security requirements
Perform an internal audit
Allocate internal resources with necessary competencies who are independent of ISMS development and maintenance, or engage an independent third party
Verify conformance with requirements from Annex A deemed applicable in your ISMS's Statement of Applicability
Share internal audit results, including nonconformities, with the ISMS governing body and senior management
Address identified issues before proceeding with the external audit
Undergo external audit of ISMS to obtain ISO 27001 certification
Engage an independent ISO 27001 auditor
Conduct Stage 1 Audit consisting of an extensive documentation review; obtain feedback regarding readiness to move to Stage 2 Audit
Conduct Stage 2 Audit consisting of tests performed on the ISMS to ensure proper design, implementation, and ongoing functionality; evaluate fairness, suitability, and effective implementation and operation of controls
Address any nonconformities
Ensure that all requirements of the ISO 27001 standard are being addressed
Ensure org is following processes that it has specified and documented
Ensure org is upholding contractual requirements with third parties
Address specific nonconformities identified by the ISO 27001 auditor
Receive auditor’s formal validation following resolution of nonconformities
Conduct regular management reviews
Plan reviews at least once per year; consider a quarterly review cycle
Ensure the ISMS and its objectives continue to remain appropriate and effective
Ensure that senior management remains informed
Ensure adjustments to address risks or deficiencies can be promptly implemented
Calendar ISO 27001 audit schedule and surveillance audit schedules
Perform a full ISO 27001 audit once every three years
Prepare to perform surveillance audits in the second and third years of the Certification Cycle
Consider streamlining ISO 27001 certification with automation
Transform manual data collection and observation processes into automated and continuous system monitoring
Identify and close any gaps in ISMS implementation in a timely manner
Learn more about achieving ISO 27001 certification with Vanta
Book an ISO 27001 demo with Vanta
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Download NowDetermine which annual audits and assessments are required for your company
Perform a readiness assessment and evaluate your security against HIPAA requirements
Review the U.S. Dept of Health and Human Services Office for Civil Rights Audit Protocol
Conduct required HIPAA compliance audits and assessments
Perform and document ongoing technical and non-technical evaluations, internally or in partnership with a third-party security and compliance team like Vanta
Document your plans and put them into action
Document every step of building, implementing, and assessing your compliance program
Vanta’s automated compliance reporting can streamline planning and documentation
Appoint a security and compliance point person in your company
Designate an employee as your HIPAA Compliance Officer
Schedule annual HIPAA training for all employees
Distribute HIPAA policies and procedures and ensure staff read and attest to their review
Document employee trainings and other compliance activities
Thoroughly document employee training processes, activities, and attestations
Establish and communicate clear breach report processes
to all employees
Ensure that staff understand what constitutes a HIPAA breach, and how to report a breach
Implement systems to track security incidents, and to document and report all breaches
Institute an annual review process
Annually assess compliance activities against theHIPAA Rules and updates to HIPAA
Continuously assess and manage risk
Build a year-round risk management program and integrate continuous monitoring
Understand the ins and outs of HIPAA compliance— and the costs of noncompliance
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