How High Reliability Organizations Evaluate IoT Vendor Security Compliance

Focusing more attention recently on patient-centered care, the U.S. healthcare sector has been motivated to establish more high reliability organizations (HROs). As defined by the federal government’s Agency for Healthcare Research and Quality, HROs are organizations that operate in complex, high-hazard domains for extended periods without serious accidents or catastrophic failures.

Among the many standards sought to achieve HRO status, health care leaders prioritize safety and security by adopting IoT systems that anticipate and mitigate potential risks. In addition, they foster an enterprise-wide culture of heightened awareness, in which all stakeholders are alerted to potential hazards and actively seek to identify and address disruptions before they escalate, thereby reducing medical errors and improving patient outcomes and trust.

For HROs, IoT security is not merely a question of protecting technology. It’s also about safeguarding critical operations, sensitive data, and the core principles of reliability, safety, and trustworthiness that define an HRO. Evaluating the record and reputation of IoT vendors regarding security compliance empowers HRO leaders to proactively address potential vulnerabilities and maintain their commitment to safe and secure operations.

The importance of evaluating IoT vendor security compliance

For HROs, evaluating the security compliance of IoT vendors is of critical importance to the following concerns:

• Mitigating risk: Because IoT devices often introduce new points of vulnerability open to cyber attacks, evaluating vendor security identifies and addresses potential weaknesses before they can be exploited.
• Securing data:  HROs handle sensitive health care data, such as personally identifiable information (PII) and protected health information (PHI). They must, therefore, ensure their IoT vendors comply with relevant data protection laws and cybersecurity standards — including General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA) — to avoid fines, legal repercussions, and reputation damage in case of a data breach.
• Safeguarding operations: Compromised IoT devices can disrupt vital operations and exposed infrastructure, potentially creating unsafe conditions and threats to public safety.
• Building trust: Ensuring that IoT systems are secure helps foster customer confidence in connected environments, promotes reliability and transparency in service delivery, and preserves brand reputation. 
  
  

Adhering to IoT security standards: scalability, quality, and reliability

Adhering to security standards confirms that IoT vendors and their solutions meet specific security requirements and standardize security practices across the IoT ecosystem to enable easier integration of devices. Security standards are the foundation for scalability, quality, and reliability, which are minimum standards required for HRO status.

Scalability: adaptable infrastructure & automation

An adaptable infrastructure allows for independent scaling of different components without impacting the overall security system or introducing new vulnerabilities as operations expand. Supporting that flexible foundation, automation embeds security policies directly into infrastructure code and processes to ensure that security measures scale alongside the system, thus making it easier to manage and enforce security consistently across a growing IoT network.

Quality: greater accuracy and continuous improvement

Automated security protocols embedded into operations provide greater accuracy and prevent security vulnerabilities from becoming defects that compromise the quality and functionality of the system. Adhering to standards such ISO 9001 and industry-specific regulations ensures that processes meet and exceed customer expectations through continuous improvement.

Reliability: response and recovery

Adhering to security standards reduces the likelihood of security breaches that lead to significant downtime, data loss, and operational disruption. Implementing well-defined incident response plans and disaster recovery strategies is crucial for minimizing the impact of any security breaches that might occur and for quickly restoring system functionality.

In short, building a system on a solid foundation of scalability, quality, and reliability provides the framework for creating a resilient and trustworthy system that can scale to meet growing demands.

SOC 2 Type II Compliance: A rigorous standard for IoT security maturity

SOC 2 Type II is a respected certification tool for IoT vendors. Not only does it provide evidence of their commitment to data security, it also boosts confidence among customers by certifying that the vendor has robust security practices that can be trusted with critical data. 

Basically, SOC 2 Type II compliance is a verification report issued by an independent auditor after testing an IoT vendor’s controls related to security, processing integrity, confidentiality, and privacy for a broad scope covering infrastructure, software, people, and data. Unlike SOC 2 Type I, which assesses the design of controls only at a specific time, Type II audits their operating effectiveness over a longer period, typically between 6 to 12 months.

SOC 2 Type II is a stamp of approval, assuring customers that a vendor’s IoT devices have met established security standards and are less vulnerable to cyberattacks. It mitigates risks associated with the ever-expanding ecosystem of interconnected devices by validating that devices have been tested for liabilities and that the vendor has implemented effective security measures to protect against threats.

Steps for evaluating IoT security during vendor procurement

Evaluating the security of IoT technologies from different vendors during the procurement process requires a comprehensive approach that considers evaluation of their products and their reputation. 

Steps for evaluating the vendor’s product

1. Request detailed security documentation: Obtain comprehensive information from vendors outlining their security protocols, architecture, and features embedded in their technology.
2. Assess compliance with standards and regulations: Verify whether the vendor's IoT devices adhere to relevant industry standards such ISO/IEC 27400 and NIST guidelines.
3. Evaluate device security: Inquire about specific security features including hardware security, secure boot, firmware updates, encryption of data at rest and in transit, and access control mechanisms.
4. Review network security practices: Assess the vendor's approach to securing network connectivity, including authentication protocols.
5. Examine cloud and application security: If the IoT solution involves cloud platforms or mobile apps, investigate the vendor's security measures for these components, including API security, data encryption, and vulnerability management.

Steps for evaluating the vendor’s reputation

1. Assess track record: Research the vendor's history, customer reviews, and any publicly reported security incidents.
2. Inquire about security team capabilities: Investigate the vendor security team's responsiveness, expertise, and willingness to collaborate on security concerns.
3. Seek third-party certifications: Look for certifications such ISO 27001 or adherence to specific security frameworks as evidence of robust security practices.

Choosing the right IoT vendor can seem complicated. In this podcast, Gil Dror, CTO at SmartSense, joins Ryan Chacon on the IoT For All Podcast to discuss what you need to know about IoT vendor security. They cover IoT security vulnerabilities, how companies can prioritize IoT security, and how IoT security differs across industries.

SmartSense achieves SOC 2 Type II certification and compliance

In 2024, SmartSense achieved SOC 2 Type II certification and compliance. This milestone highlights our commitment to ensuring that customer data remains secure, private, and confidential through enhanced data protection and operational standards that support both regulatory and quality assurance. It also demonstrates our drive for continuous improvement through ongoing testing and updating to maintain compliance and to ensure that IoT devices remain secure as new threats emerge.

By receiving SOC 2 Type II certification at the organization level, SmartSense removes internal approval friction for their customers and accelerates their return on investment and program success outcomes. While it may be common for other IoT solution providers to defer security to third parties such as cloud service providers, SmartSense believes that prioritizing and managing the security and hygiene of customer data isn’t just optional — it’s a baseline requirement for us to own.

To achieve SOC 2 Type II compliance, SmartSense opened its operations to a year-long review of its security policies, establishing a continuous monitoring and third-party auditing system to proactively manage daily security risks and ensure a high level of operational resilience. This initiative reflects the company’s broader commitment to aligning with industry best practices, reinforcing security not only as a business requirement but as a core value embedded throughout the organization.