GDPR | DORA | ISO 27001 | SOC 2
ISO 27001 vs SOC 2
When it comes to demonstrating information security practices to clients, partners, and regulators, two frameworks often come up — ISO 27001 and SOC 2. Both are globally recognized, but they serve different purposes, have distinct processes, and suit different types of organizations.
In this blog, we’ll break down the key differences between ISO 27001 and SOC 2, their scopes, certification processes, and how to decide which one aligns best with your business needs.
- What is ISO 27001?
- What is SOC 2?
- ISO 27001 vs SOC 2 – Key Differences
- Which One Should You Choose?
- Can You Pursue Both?
What is ISO 27001?
ISO 27001 is a globally recognized framework that outlines best practices for creating, operating, monitoring, and enhancing an Information Security Management System (ISMS). Developed by the International Organization for Standardization (ISO), it offers a structured methodology to safeguard sensitive data by focusing on its confidentiality, integrity, and availability throughout the organization.
ISO 27001 is widely recognized across industries and regions, making it suitable for organizations that operate globally. The certification involves implementing Annex A controls, performing risk assessments, and undergoing independent audits to validate compliance.
- Focus: Information Security Management System (ISMS)
- Certification: Formal certification by an accredited body
- Scope: Global recognition, applicable to all industries
- Standardized Framework: Based on ISO/IEC standards. Please refer Satement of Applicability (SoA)
What is SOC 2?
SOC 2 (Service Organization Control 2) is a framework developed by the American Institute of CPAs (AICPA) specifically designed for service organizations to manage and protect customer data. SOC 2 reports examine how organizations manage customer data based on five key Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
Unlike ISO 27001, SOC 2 is more common in North America and is often preferred by technology and SaaS companies. The audit is performed by a licensed CPA firm, resulting in a SOC 2 Type I or Type II report Type I or Type II report, depending on whether it assesses design (Type I) or operational effectiveness over time (Type II).
- Focus: Trust Services Criteria (TSC) for service organizations
- Certification: SOC 2 does not issue a formal certificate; instead, organizations receive an attestation report from a licensed CPA firm.
- Scope: Primarily recognized in North America
- Flexible Controls: Customized based on client commitments and service types
ISO 27001 vs SOC 2 – Key Differences
While ISO 27001 and SOC 2 both aim to demonstrate an organization’s commitment to information security, they differ in scope, audience, certification process, and regional acceptance. Here’s a comparison of their key differences:
| Aspect | ISO 27001 | SOC 2 |
|---|---|---|
| Scope | Information Security Management System (ISMS) applicable to any organization | Trust Services Criteria for service organizations handling customer data |
| Geographic Recognition | Global | Primarily North America |
| Certification Type | Formal certification by accredited bodies | Attestation report by a licensed CPA firm (Type I or Type II) |
| Framework | Standardized (ISO/IEC 27001 framework) | Customizable controls based on Trust Services Criteria where Security is must criteria. |
| Audit Focus | Implementation and continuous improvement of ISMS | Design and operating effectiveness of controls relevant to customer commitments |
| Validity Period | 3 years (with annual surveillance audits) | 1 year attestation |
| Industry Preference | Organizations with global operations, any industry | SaaS companies, cloud service providers, and tech-focused businesses |
Which One Should You Choose?
The choice between ISO 27001 and SOC 2 should align with your organization's services, geographical reach, and the compliance needs of your clients.
- If you serve global clients, especially in regulated industries, ISO 27001 is often preferred due to its international recognition. Read more Who typically needs ISO 27001?
- If your clients are primarily in North America and you are a SaaS, cloud, or service organization, SOC 2 is often more relevant.
- If your clients request formal certification, ISO 27001 is the right option when a formal certification is needed, as SOC 2 only provides an attestation report, not a certification.
- If flexibility in control selection is important, SOC 2 allows you to design controls aligned with specific client commitments under the Trust Services Criteria.
Can You Pursue Both?
Yes, many organizations opt for both ISO 27001 certification and SOC 2 reports to cover a broader range of client requirements. This is particularly common among global SaaS companies who need ISO 27001 for international credibility and SOC 2 for U.S.-based client contracts.
While pursuing both frameworks involves additional effort, there is significant overlap in control areas. A well-designed ISMS aligned with ISO 27001 can streamline the SOC 2 readiness process.
Conclusion
ISO 27001 and SOC 2 are both powerful frameworks that demonstrate your organization’s commitment to protecting sensitive information. However, they serve different strategic purposes.
ISO 27001 offers a comprehensive, globally recognized certification for building and maintaining an effective Information Security Management System (ISMS). SOC 2, on the other hand, provides a flexible, client-focused assurance report, commonly demanded by North American service providers and SaaS businesses.
Ultimately, your decision between ISO 27001 and SOC 2 should align with your business model, client expectations, and target markets. For organizations with global operations or diverse client bases, pursuing both may offer a competitive edge.