SOC 2 Risk Management Workflow Engagement Letter Template

Last updated: July 2025

SOC 2 Compliance: Risk Management Workflow

Purpose: To establish a robust and continuous risk management process that supports your firm’s SOC 2 compliance, identifying, assessing, and mitigating risks to safeguard trust service principles.

1️⃣ Risk Identification

• ☐ Establish the overall risk context, including internal and external factors and objectives.
• ☐ Identify and document all potential risks related to information security, availability, processing integrity, confidentiality, and privacy.
• ☐ Categorize identified risks into relevant groups (e.g., operational, technical, compliance).
• ☐ Create and maintain a comprehensive risk register detailing each identified risk.

 2️⃣ Risk Analysis & Evaluation

• ☐ Assess the likelihood or frequency of each identified risk occurring.
• ☐ Determine the potential impact if each risk materializes.
• ☐ Combine likelihood and impact to assign a clear risk level (e.g., low, medium, high).
• ☐ Prioritise risks based on their assessed level and strategic importance to the firm.

 3️⃣ Risk Response & Mitigation

• ☐ Develop specific strategies to address prioritized risks (avoidance, reduction, sharing, or acceptance).
• ☐ Design and implement appropriate control activities to mitigate identified risks effectively.
• ☐ Clearly assign ownership and responsibilities for managing each risk and implementing controls.
• ☐ Document detailed mitigation plans, including actions, timelines, and required resources.

4️⃣ Risk Monitoring & Review

• ☐ Regularly monitor the effectiveness of all implemented controls.
• ☐ Periodically review and update the risk register.
• ☐ Conduct comprehensive risk assessments at defined intervals.
• ☐ Stay alert to track and identify any new or emerging risks and vulnerabilities.

5️⃣ Risk Reporting & Communication

• ☐ Prepare clear and concise reports summarizing the firm’s overall risk posture.
• ☐ Communicate risk information to relevant internal and external stakeholders.
• ☐ Maintain open and effective communication channels for all risk-related concerns.
• ☐ Gather feedback on risk reports and processes to ensure continuous improvement.