Building a robust cybersecurity foundation hinges on maintaining stringent standards. Discover the distinctions between SOC 2 vs ISO 27001, and explore how you can leverage them to enhance your security posture right now.
The cybersecurity battle for the ages might not be the bad guys vs the security team. It actually might be SOC 2 vs ISO 27001!
This is the question most companies will ask themselves before they even get to the bad guys vs security team part. Thankfully, the answer to the question is easy:
It depends!
SOC 2 and ISO 27001 take two different approaches to the same problem. Both will help you improve your cybersecurity program but in different ways. It’s important to understand the differences between the two, even if your ultimate decision might be the result of something else altogether.
What is SOC 2?
SOC 2 , or Systems and Organization Controls 2, is a cybersecurity framework created by the American Institute of Certified Public Accountants (AICPA) . It focuses on how organizations manage and protect data in five key areas: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
What is ISO 27001?
ISO 27001 is an international standard for information security management. Created by the International Organization for Standardization (ISO) , it provides a structured approach to securing sensitive data through an information security management system (ISMS).
What Is the Difference Between SOC 2 and ISO 27001?
The main difference between SOC 2 and ISO 27001 is that SOC 2 is an attestation and ISO 27001 is a certification. A SOC 2 attestation is a report that provides an auditor’s opinion of the company’s cybersecurity program – even a company with a bad cybersecurity program can get a SOC 2. Meanwhile, companies must meet the ISO 27001’s set of requirements or they will not be issued a certification.
Why Choose SOC 2 or ISO 27001? A Practical Guide for Businesses
SOC 2 and ISO 27001 both come with their own set of benefits, and your decision ultimately depends on your business’s goals, the needs of your clients, and where your operations are based. Let’s break down when you should choose each framework.
For US-Based Clients
If you’re primarily serving customers in the United States, SOC 2 is typically the go-to standard. SOC 2 is widely recognized and preferred by B2B companies, particularly in the SaaS and fintech industries. Customers want to see SOC 2 compliance, and that’s what drives companies to pursue it.
For International Clients
If your company has a strong international presence or if you’re targeting European or Asian markets, ISO 27001 might be the better option. Many global companies expect ISO 27001 certification to do business with them, especially in industries such as healthcare, finance, and manufacturing.
Why Choose Both?
Many growing businesses with a global reach choose to pursue both SOC 2 and ISO 27001. This allows them to demonstrate their commitment to security across all markets. Plus, achieving both certifications shows potential customers that your organization is serious about securing their data—no matter where they’re located.
Each framework offers its own unique advantages, and in some cases, it might make sense to pursue both to cover all your bases. After all, the end goal is to ensure that your cybersecurity program is as strong and trustworthy as possible.
The Costs of SOC 2 and ISO 27001 Compliance – What You Should Know
Cost is often one of the first things companies consider when deciding between SOC 2 and ISO 27001. Let’s take a closer look at what you can expect to pay for each certification and why these costs vary.
SOC 2 compliance can vary significantly based on the size of your company and the scope of the audit. Generally, you can expect to pay:
SOC 2 Type 1: This audit, which evaluates your security program at a specific point in time, usually costs between $10K and $20K. SOC 2 Type 2: A more comprehensive audit that evaluates your security program over a period of 6 to 12 months can cost anywhere from $20K to 30K, or more for large and complex audits.
Preparation for the audit is much more expensive and time-consuming than the audit itself.
The flexibility of SOC 2 means you can control costs to some extent by choosing the Trust Services Criteria (TSC) relevant to your organization. However, the more criteria you select, the more extensive the audit, which can increase costs.
ISO 27001 Compliance Costs
ISO 27001 tends to be a more expensive certification due to its prescriptive nature and the extensive documentation required. On average, ISO 27001 certification costs between $30K and $100K, again depending on the size and complexity of your organization.
Long-Term Considerations
Both SOC 2 and ISO 27001 require ongoing maintenance to remain compliant. For SOC 2, this typically means annual audits, while for ISO 27001, there’s a need for ongoing internal audits and improvements to your ISMS. Every three years, you must complete a full ISO recertification audit. Factor these ongoing costs into your budgeting to ensure you’re prepared for the long haul.
SOC 2 vs. ISO 27001 – Two Approaches
While both SOC 2 and ISO 27001 will commonly be referred to as “certifications,” technically only ISO 27001 is one. SOC 2 is actually an attestation. While this might seem semantic, it reveals the different approaches the two certifications take to cybersecurity compliance. (I will refer to both as certifications for the rest of this document to keep the grammar simple.)
ISO 27001 is a proper certification. ISO certifies that an organization is following a prescribed set of cybersecurity controls. There isn’t a huge amount of room for variation between different programs at different companies.ISO 27001:2022 is cybersecurity prescribed.
SOC 2 is cybersecurity customized .
Both compliance certifications ultimately work towards the same goal and have significant overlap. An organization that has received either a SOC 2 or an ISO 27001 has clearly done a lot of work on its cybersecurity program. Both evaluations focus on good processes such as managing access control, change control and many good technical controls.
But their different approaches ultimately yield some key differences that you should consider when comparing SOC 2 vs ISO 27001.
SOC 2 vs. ISO 27001 – Practical Differences
The customized vs prescribed nature of SOC 2 vs ISO 27001 plays out in a couple of different ways.
AICPA SOC 2
AICPA SOC 2 gives you many options to build your program. There is one required area of focus (Security), plus four optional ones (Availability, Processing Integrity, Confidentiality, and Privacy) to make up the five Trust Services Criteria. Choosing which five Trust Services Criteria you want to meet is an important part of preparing for a SOC 2 audit.SOC 2 Type 1 vs SOC 2 Type 2 . A Type 1 evaluates your security program at a single point in time while a Type 2 evaluates your security program over a period of time (usually six to 12 months). SOC 2 Type 2 is viewed as much more valuable, but most companies will get a Type 1 first while working towards a Type 2.how to read a SOC 2 report .
As a bonus for the pandemic world, SOC 2 audits can usually be performed virtually.
ISO 27001
As mentioned earlier, you meet ISO 27001’s required controls and get a certification that tells people exactly what you’re doing.
The specificity of the ISO 27001’s approach means there is a heavy focus on documentation. Policy documentation is important for both SOC 2 and ISO, but ISO takes it to another level. It’s very important that your documentation is robust and thorough to successfully get the certification.ISO 27001 certified . Further digging isn’t as important as it is for SOC 2.
ISO 27001 also has a focus on performing the audit in person. ISO values the time that the auditor spends on-site with the company. This is especially true for companies with on-premises servers.
At the end of ISO 27001, the company gets a certificate on what was covered but ISO 27001 does not include a report explaining the program.
Does ISO 27001 Cover SOC 2?
ISO 27001 and SOC 2 are separate compliance frameworks. While there is a lot of overlap between required controls, they are not one-to-one. The stricter requirements of ISO 27001 generally mean that an ISO 27001-certified company will have an easier time earning a SOC 2 than the other way around.
The Benefits of Achieving Both SOC 2 and ISO 27001 Certifications
While it might seem like a daunting task to pursue both certifications, the benefits of achieving SOC 2 and ISO 27001 often outweigh the effort. Here’s why businesses are opting for both certifications:
Extends Market Reach
By having both SOC 2 and ISO 27001 certifications, your business opens doors to a broader range of clients. SOC 2 is essential for US-based clients, while ISO 27001 is a must-have for international business. If you’re operating in multiple regions, having both gives you the edge in attracting global clients.
SOC 2 is ideal for industries like SaaS, fintech, and healthcare in North America.
ISO 27001 is preferred by companies in Europe, Asia, and industries like manufacturing and financial services.
Builds Trust and Credibility
When potential clients see that you have both SOC 2 and ISO 27001 certifications, it sends a clear message: your organization is committed to maintaining top-tier security practices. This dual certification can help you win contracts, especially with clients that prioritize data security.
Streamlines Processes
Because of the overlap between SOC 2 and ISO 27001, having one certification often makes it easier to achieve the other. The documentation and security practices required for ISO 27001 align closely with many of the controls in SOC 2, making it simpler to pass both audits once you’ve got one under your belt. However, it’s much easier to go from an ISO 27001 to SOC 2 than vice-versa!
Common Challenges During SOC 2 and ISO 27001 Audits
Even the most prepared companies can face challenges during the SOC 2 and ISO 27001 audit processes. Here’s what you need to watch out for:
SOC 2 Challenges
Lack of Documentation: The SOC 2 audit requires that you provide evidence of your security practices. Without proper documentation, it can be difficult to demonstrate your compliance.Inconsistent Security Culture: Your team needs to be fully committed to cybersecurity. SOC 2 audits evaluate the effectiveness of your security program across the board, and if there are weaknesses in your internal culture, they’ll show up.Time Management: Many businesses underestimate how long it takes to get ready for a SOC 2 audit, particularly for Type 2 audits. Be prepared for a multi-month commitment.
ISO 27001 Challenges
Document Overload: The documentation that’s required for ISO 27001 can be overwhelming, especially for smaller organizations. Make sure your team is ready to invest the time needed to create thorough and compliant documents.Comprehensive Risk Assessment: ISO 27001 requires an extensive risk management process. You’ll need to document and assess potential risks across all areas of your business.Resource Demands: The process to implement and maintain ISO 27001 can require significant internal resources. Be sure to allocate the necessary time and personnel to get the job done.
SOC 2 vs. ISO 27001 – Which Cybersecurity Audit Framework Should I Pick?
The biggest decision criteria for most companies is going to be where their customer base is located. This might seem odd for something like cybersecurity, but it makes a lot of sense when considering the return on investment in a cybersecurity program.
Creating a good security program for either SOC 2 or ISO 27001 will significantly reduce your risk of being compromised by a cyber attack. They both do the job, so are functionally equivalent in that regard. The biggest difference in return between the two is which one will lead to greater sales. The answer to that question is once again:
Whether you select a SOC 2 or ISO 27001, the organizational commitment will benefit your organization’s security, help protect your customers’ and employees’ data, and improve how prospects perceive your company.
Watch the video below for a quick review!
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Frequently Asked Questions About SOC 2 vs. ISO 27001
SOC 2 vs. ISO 27001 Key Differences 1. SOC 2 is an attestation, while ISO 27001 is a certification
What are the similarities between ISO 27001 and SOC 2? The process of obtaining an ISO 27001 and SOC 2 is similar; an organization must build and document its cybersecurity program, and then have it audited by a certified auditor. Additionally, ISO 27001 and SOC 2 serve the same purpose by building trust in a vendor or partner’s cybersecurity program.
