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ISO 27001 vs. SOC 2: Which Is Right For You?

By Mindsec Staff 19 April, 2024

Today, all businesses handling customer data are responsible for ensuring its safety. Compliance standards serve as widely respected frameworks in data security, helping organizations establish robust security programs and mitigate risks for customers when engaging with new vendors. 

ISO 27001 and SOC 2 are among the most globally recognized compliance standards around and your potential partners may request evidence of your compliance with either or both standards before committing to collaboration. 

In this article, we aim to highlight the similarities and differences between the two and how to make the right choice between them.  

 

What is ISO 27001?  

ISO 27001 is a standard established by the International Organization of Standardization and sets out clear requirements for implementing an Information Security Management System (ISMS). This involves employing strategies such as risk assessment, access control, and incident response playbooks. Companies handling customer data utilize ISO 27001 to demonstrate to stakeholders and prospects the measures in place for safeguarding data. Certification requires verification by a third-party auditor to ensure compliance.  

 

What is SOC 2?  

On the other hand, SOC 2, developed by the American Institute for Certified Public Accountants (AICPA), serves as a framework to document your efforts to safeguard customer data during processing, handling, or storage. SOC 2 outlines criteria like identity and access management. Obtaining SOC 2 compliance requires engaging an auditor to assess your controls and their adherence to the standards. Subsequently, the auditor provides a comprehensive report detailing security practices and compliance status.  

 

Similarities Between ISO 27001 and SOC 2 

ISO 27001 and SOC 2 stand out as pivotal security standards for your compliance program. While distinct in their criteria, they share common ground.   

For example, both will help your business investigate data security controls and allow your organization to demonstrate trust. Moreover, both have several overlapping controls, including:  

  • Risk management process 
  • Data access management 
  • Physical security measures 
  • Employee training in data security and breach prevention 

 

Differences Between ISO 27001 and SOC 2 

Despite their similarities, certain clients will prefer one standard over the other.  

One area in which they diverge is in the scope of their compliance requirements, in other words, the number of controls required for implementation.  

Both require the implementation of controls tailored to the specific needs of your business. However, ISO 27001 requires a broader spectrum of criteria fulfillment and a more comprehensive integration of security controls to achieve compliance.  

SOC 2 on the other hand, delineates security controls into five categories, dubbed the Trust Services Criteria (TSC), where only one category is mandatory across all SOC 2 reports. The inclusion of the remaining four categories hinges on their relevance to your products and services. 

Geographically, while both standards hold significance in the security and technology sectors, regional preferences exist. For those doing business in North America, SOC 2 dominates as the compliance benchmark in this region. Conversely, ISO 27001 enjoys wider global recognition, making it essential for engagements beyond North America.  

Regarding reporting, ISO 27001 furnishes a certification denoting audit success but lacks granularity in specifying areas of compliance. Alternatively, SOC 2 provides a detailed report, highlighting both successful and deficient areas, thereby offering enhanced transparency to stakeholders.  

In terms of the audit processes, the timeline for attaining these certifications also differs. ISO 27001 entails an examination of documentation and ISMS adherence and can span anywhere between 6-12 months. SOC 2 timelines on the other hand, vary based on the report types, with Type 1 projects usually spanning a couple months, and Type 2 projects between 3-6 months for completion.      

 

Which Standard is Right For You?  

The best answer to that question will come directly from your clients. However, waiting for a client request to decide which to pursue isn’t practical due to the time involved in obtaining a certification or attestation. So, how do you choose? 

Think through the following questions during your decision-making:  

  1. Where are your customers located? SOC 2 is predominant in North America, while ISO 27001 holds sway across most global markets.  
  1. Which standard is more prevalent in your customers’ industries? Certain sectors favor SOC 2, while others favor ISO 27001.  
  1. Do you already have an established Information Security Management System (ISMS)? ISO 27001 can assist in ISMS development, particularly if your data security program is just getting started. While SOC 2 aids more in building best practices in an existing system.   

 

If your target markets span both global and North American customers and encompass diverse industries, implementing just one of these standards may be enough to meet all your clients’ requirements. Many organizations find the most comprehensive solution lies in obtaining both ISO 27001 and SOC 2 compliance.  

Securing both SOC 2 and ISO 27001 certifications can be quite an investment in terms of time, money, and complexity, especially if you’re tackling both at the same time. But it doesn’t have to be such a daunting task. 

A compliance automation platform, such as the one offered by Mindsec, can significantly ease this burden. We offer guidance, help you navigate the compliance process and streamline your efforts. By using our compliance automation tool, you can efficiently handle tasks for both standards without doubling your workload, making the compliance journey more manageable and efficient. Reach out to a Mindsec expert today! 

Mindsec Staff

Mindsec staff