In the first two blog posts of our SaaS series, we made the case for using a SaaS solution to prepare digital annual reports in compliance with the European Single Electronic Format (ESEF) mandate and also talked about how SaaS solutions are easier on your pocket than on-premise solutions.

In this article, we talk about the data security measures a SaaS solution should ideally employ.

SaaS (Software as a Service) has gained a lot more traction due to the pandemic — with SaaS providers enabling companies to conduct many of their operations remotely. However, the one concern SaaS solutions can pose is the storage of data outside a company’s internal network. Simply transferring data from your internal network to a service provider can put your data at risk — both in transit and at rest.

In the recent past, there have been reports of companies large and small facing security/cyber breaches. Even global companies like Yahoo, Facebook, and TikTok have not been spared. With SaaS solutions, the risk of such breaches is high because entire processes are online. To help you protect your data, we have listed out some of the most significant security-related pointers that you should consider before embarking on your SaaS journey.

ESEF

Secure webpage

Since SaaS providers offer a web-based user interface, it becomes highly imperative that the webpage concerned is secure. A secure webpage is indicated by ‘https’ in its URL. For instance, the IRIS CARBON® platform can be accessed only by a secure https://URL with a valid SSL certificate.

Password policy

Modern, security-focused SaaS providers would always have industry-best password policies for their user accounts. Check if the SaaS solution under consideration provides features such as — passwords with a specific character count, alpha-numeric passwords, and passwords that expire after a certain period of time. 

SSO/LDAP integration

What if you want to employ your existing password policies for the SaaS solution? SaaS solutions should offer their users the functionality to integrate SSO (Single Sign-On) and LDAP ‘(Lightweight Directory Access Protocol) so that your existing password policies can be followed.

Two-factor Authentication

Two-factor authentication bolsters the existing security of a SaaS solution. Two-factor authentication is where a user is required to enter a one-time password (OTP) along with their user credentials to gain access to the SaaS solution. Modern platforms such as IRIS CARBON® offer features like a dynamic PIN (OTP), wherein a user is required to enter a PIN received on their registered work email address along with their user credentials to access the platform.

Data encryption

 Now that your data would be stored on the cloud, encryption becomes of high importance. Customers should ensure that the data is secured in transit and at rest. Most SaaS vendors, including IRIS CARBON®, offer AES 256-bit encryption as a standard. (AES stands for Advanced Encryption Standard).

Regular patches

Regular security patches help strengthen a software/application against a cyber-attack, thus helping companies reduce their security risks. A SaaS solution/application should receive regular security patches/software upgrades in order to constantly evolve and strengthen the security of the product.

Certifications

As conformance to certain security standards, SaaS companies undergo audits and certifications. Before finalizing your SaaS solution, IRIS highly recommends that you check for relevant certifications. For instance, before finalizing any software to prepare your XBRL | iXBRL compliance documents, check whether the software is XII and SOC certified.

Compliance with appropriate international/national standards

Check if a SaaS vendor complies with international/national standards such as ISO 27001. This international standard lays guidelines for how companies should manage data securely. Compliance with such international standards should provide a level of confidence about data security to your company.

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Tight data security features are the need of the hour — more so when it is a company’s financial information that is at stake. Most organizations are now opting for SaaS solutions for various operations, including regulatory compliance. It is important that the choice of a SaaS solution for regulatory compliance involve the question of data security. Use the checklist above to pick the solution with the best security features.

IRIS CARBON® facilitates regulatory compliance in a highly secure and best-in-class SaaS environment.

SaaS solution, cloud, security, SSO, AES 256, encryption, 2FA, MFA, Multi-Factor Authentication, Two Factor Authentication, ISO 27001

SaaS solution, cloud, security, SSO, AES 256, encryption, 2FA, MFA, Multi-Factor Authentication, Two Factor Authentication, ISO 27001

SaaS solution, cloud, security, SSO, AES 256, encryption, 2FA, MFA, Multi-Factor Authentication, Two Factor Authentication, ISO 27001

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