Where SOC 2 provides guidance on how organizations should protect customer data from unauthorized access, security incidents, and other vulnerabilities, ISO 27001 outlines the requirements to establish, maintain, and continually improve an information security management system (ISMS) to protect sensitive information. Both standards aim to assist organizations in better protecting sensitive data from data breaches and other threats, but they do so in very distinctive ways.
Keep reading to learn where these standards overlap, where they differ, and how to choose the best for your organization’s needs.
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What is ISO 27001 and SOC 2?
Here’s a quick overview of these two leading information security standards and the principles they’re structured around:
What is ISO 27001?
ISO 27001 was developed by the International Organization for Standardization (ISO) and is considered the global standard when it comes to information management systems (ISMS). It includes a comprehensive framework of policies and controls to address three main aspects of data protection:
- Availability: Ensuring that information is accessible to authorized users.
- Confidentiality: Checking that access controls are in place so that only authorized users have access to data.
- Integrity: An extension of the above, this aspect focuses on making sure that data can only be edited by those authorized to.
IS0 27001 includes 93 security controls to cover all this, grouped by 4 themes:
- Organizational
- Physical
- People
- Technological
This is what allows the standard to be applied across a variety of assets, including employee data, intellectual property, and third-party data. It’s a robust data security approach designed to suit organizations of any size and industry.
What is SOC 2?
Developed by the American Institute of Certified Public Accountants (AICPA), the SOC 2 framework is aimed specifically at managing and protecting customer data. The standard is underpinned by the Trust Service Criteria which also helps describe the approach SOC 2 takes to information security:
- Security: Making sure that proper controls are in place to protect data from unauthorized access, use, modification, etc.
- Availability: Systems and data need to be available for use and access as agreed.
- Processing Integrity: Data processing must be valid, complete, timely, accurate, and only performed by those authorized to do so.
- Confidentiality: Any information agreed to be confidential should be kept as such and protected from unauthorized access.
- Privacy: Private personal information (PPI) must be protected in accordance with privacy laws and regulations.
SOC 2 also includes two types of reports. SOC Type 1 audits and describes information security systems and controls at a specific point in time, while Type 2 looks at operational efficiency over a period of about 2 to 12 months.
What are the Differences Between SOC 2 and ISO 27001?
There’s no denying that SOC 2 and ISO 21001 operate in the same realm, but they do so very differently:
- Target Market: Developed by a US organization, SOC 2 is aimed primarily at American and North American businesses though it is also used in a global context. If your customer base is mostly in the US, an SOC 2 certification is usually necessary. Many business partners will require it.
That said, some will also accept ISO 27001. ISO is generally more suited to global operations, especially in Europe, as it ensures GDPR compliance.
- Level of Flexibility: ISO 27001 is very structured and prescriptive whereas SOC 2 is more flexible. ISO requires a full implementation of an ISMS according to their frameworks whereas an SOC 2 certification simply requires that an organization’s controls align with the Trust Services Criteria. SOC 2 implementation can be tailored far more easily to a business than ISO 27001.
- Audit Scope: SOC 2 audits are usually limited to specific services or systems. In contrast, the ISO 27001 certification includes the whole business in its assessment.
- Audit Cost: As a result of the above, an SOC 2 tends to involve less documentation and complexity out of the two standards which means that it then costs less as well.
- Audit Process: SOC 2 attestation reports can only be performed by a licensed CPA and the process will differ depending on whether a Type 1 or Type 2 report is done. The ISO 2700 certification must be done by a recognized ISO 27001-accredited body.
- Audit Timeline: The actual steps of the audits are quite similar but the time it takes for implementation varies. SOC 2 will generally take about two or three months to implement while ISO 27001 can take as long as six.
- Report Type: ISO 2700 results are received as a formal certification whereas SOC 2 arrives in an attestation report.
What are The Similarities Between ISO 27001 and SOC 2?
For all their differences, ISO 27001 and SOC 2 do have a few things in common:
- Risk-Based Approach: A shared benefit of ISO 27001 and SOC 2 is that they help organizations build better risk management strategies when it comes to information security. Both standards require organizations to apply regular risk assessments and develop incident reporting and response plans.
- Strong Security Controls: Many controls in the two standards overlap or at least heavily align. This is particularly true when it comes to access control, physical security, incident responses, vendor management, and change management. Beyond what they have in common with specifics, both standards also share the overall benefit of helping organizations build more secure data practices.
- Third-Party Assessments: There’s no way of getting an ISO 27001 certification or SOC 2 report without a third-party assessor. Neither can be performed without someone properly accredited for the process.
- Build Trust: The above is what ultimately ensures that these standards remain emblems of trust for an organization. They are both used as signals of an organization’s commitment to information security and compliance with the necessary legal side of things. It gives partners and customers added assurance that their data is safe in your hands.
- Encourage Continuous Improvement: SOC 2 doesn’t stop after the report is released and ISO 27001 doesn’t stop after certification. Both standards have a big focus on continuous improvement and push organizations to constantly improve and evolve their information security practices so they’re up to date with technology and the kind of threats that need to be mitigated.
How to Obtain ISO 27001 and SOC 2 Compliance
Compliance with ISO 27001 and SOC 2 roughly follows the same three steps:
- Gap Analysis: Check which aspects of the standard your organization is already compliant with and identify controls that need to be improved or added.
- Implement Controls: Make the adjustments needed for compliance.
- Audit: Bring in a third party to perform the audit and submit the necessary documentation. The team or compliance body needs to be accredited and recognized to ensure the legitimacy of the process.
The specifics of the compliance process do differ depending on the standard being applied and the nature of the organization seeking compliance. That’s why it’s important to have the assistance of an ISO 27001 or SOC 2 specialist not just in the auditing phase, but during preparation as well.
Which Is Best for Your Organization?
Here’s how to make the call on whether IS0 27001 or SOC 2 compliance is right for your organization:
- When to Choose ISO 27001: Organizations that need to create an ISMS or have international clients benefit greatly from ISO 27001. It’s also a more rigorous standard so if enhancing security further than what an SOC 2 requires is of interest, it’s again worth going with an ISO 27001.
- When to Choose SOC 2: If your organization already has an ISMS in place and only does business in North America, an SOC 2 is usually the better choice. It’s a cheaper option so if you don’t need to go into depth with your audit and security checks, it’s the better choice compared to ISO 27001.
- When You Need Both: Organizations that operate in North America and beyond often benefit from complying with both ISO 27001 and SOC 2. It creates a particularly well-rounded security approach and means that you get the benefits of a compliant ISMS as well as the SOC 2 check-ins.
Can ISO 27001 and SOC 2 Work Together?
The short answer is yes. Here are a couple of key ways in which they complement each other and the benefits complying with both can provide:
- Organizations get global and U.S. market compliance coverage.
- As previously mentioned, there are many security controls shared by both standards and what they don’t share, they fill in the gaps for each other for a more robust security and risk management approach.
- With the right assistance and auditing preparation, organizations can reuse documentation for both compliance processes so that no time or effort is wasted.
- Having both only adds to the legitimacy and trust around an organization’s security practices.
Is ISO 27001 Equivalent to SOC 2?
ISO 27001 is not equivalent to SOC 2. The two standards differ enough in structure and compliance processes that they need to be treated separately. ISO 27001 can lay the groundwork for SOC 2 compliance and vice versa, but neither can replace the other.
The Pathway from ISO 27001 to SOC 2
It’s not unusual for an organization that already has ISO 27001 certification to seek an SOC 2 report. To do it successfully, organizations need to leverage the policies, procedures, documentation, and audits that they already have for ISO 27001 and analyze where existing controls overlap with SOC 2 versus the potential gaps.
More than anything, the adjustment that will need to be made is documenting the evidence necessary for SOC 2. Organizations can start with their ISO records and reviews but will likely need to add to these or adjust the scope slightly.
After that, it’s a matter of choosing the SOC 2 report type best suited to your needs and engaging a CPA firm for the audit.
How to Simplify ISO 27001 and SOC 2 Compliance
Compliance can seem like a daunting task but there are ways to simplify things:
- Identify Goals: Decide what it is you hope compliance will help your organization achieve.
- Choose the Right Certification or Report: Use your goals to direct the type of compliance your organization invests in. That will ensure that you get the maximum benefits from the process.
- Estimate Required Resources: This will guide how ready your organization is to pursue compliance as well as the scope that can be afforded.
- Get Buy-In: Compliance can be a months-long project and usually requires intense input from IT and security teams. Make sure everyone is on the same page about why compliance is worth being pursued so that people are more motivated to give what they can to the process, as well as the subsequent shift in policies and controls it may bring about.
ISO 27001 and SOC 2 at Prescient Security
At Prescient Security, we’re accredited to assist with ISO 27001, SOC 2, and many other information and cyber security standards. We can help guide every step of the process – from picking the right standard to preparing and performing the necessary audit.