Confused about these different security standards?
TL;DR
- They are both voluntary compliance standards
- SOC2 = 🇺🇸; ISO 27001 = 🌏
- SOC2 focus is more narrow (specific system), where ISO looks at a wider scope (ISMS)
- They can both help your company demonstrate commitment to information security and create more business opportunities
- They are complementary, and compliance with both doesn’t mean twice the effort, far from it.
Let’s dig in.
ISO 27001
ISO (International Organization for Standardization) 27001, formally known as ISO/IEC 27001:2022, is an internationally recognised standard that sets the requirements for an Information Security Management System (ISMS). The ISMS is a systematic approach to managing sensitive company information, encompassing people, processes, and technology. It includes the policies, procedures, and controls designed to protect an organisation's information assets from various threats and vulnerabilities.
The standard provides a framework for organisations to protect their valuable information assets, covering
- security
- confidentiality,
- integrity, and
- availability.
While ISO 27001 includes controls related to information security, it does not specifically focus on privacy like SOC2 does. However, organisations often implement ISO 27701 as an extension to ISO 27001 to address privacy management. ISO 27701 provides a framework for Privacy Information Management Systems (PIMS) and helps organisations comply with privacy regulations like GDPR.
SOC2
SOC2 (System and Organization Controls 2) is a framework developed by the American Institute of Certified Public Accountants (AICPA) that focuses on managing customer data based on five trust service criteria:
- security,
- availability,
- processing integrity,
- confidentiality, and
- privacy.
It's specifically designed for service organisations that store customer data in the cloud, making it particularly relevant for SaaS companies and data centres.
SOC2 comes in two flavours:
- Type 1: This is a point-in-time assessment that evaluates whether your security controls are properly designed at a specific moment. It's like taking a snapshot of your security setup to verify everything is configured correctly.
- Type 2: This is a more rigorous assessment that monitors your security controls over an extended period (usually 3-12 months) to verify they're working effectively over time. It demonstrates not just proper design, but also consistent operation of your security controls.
SOC2 vs ISO 27001
Here's a handy little table comparing the different options:
| Feature | SOC 2 Type 1 | SOC 2 Type 2 | ISO 27001 |
|---|---|---|---|
| Focus | Point-in-time evaluation of control design | Effectiveness of controls over time (usually 3-12 months) | Information Security Management System (ISMS) |
| Result | Audit report | Audit report | Certification |
| Validity | 12 months | 12 months | 3 years (with annual surveillance audits) |
| Geographical recognition | Primarily USA | Primarily USA | Global |
| Audit duration | Typically shorter | Longer (3-12 months observation) | 6-24 months for initial certification |
| Difficulty | Moderate | Moderate to High | High |
| Scope | Based on chosen Trust Services Criteria | Based on chosen Trust Services Criteria | Comprehensive ISMS |
| Number of controls | 60+ requirements under 5 Trust Services Criteria | 60+ requirements under 5 Trust Services Criteria | 93 controls under 4 themes |
| Auditor | CPA firm | CPA firm | Accredited certification body |
| Report detail | Detailed (60+ pages) | Detailed (60+ pages) | Less granular, summary of findings |
| Cost | Lower | Higher | Varies (typically higher than SOC 2 Type 1) |
SOC3
Really? SOC3? It's essentially a public-friendly version of SOC2 report: Less jargon and no sensitive information (e.g., data, design, detailed controls). SOC3 provides a high-level overview that can be freely shared with stakeholders, customers, and the public.
SOC2 and ISO 27001?
The choice between these standards depends on factors such as where your clients are located, industry requirements, and your specific security needs. Most SaaS companies providing services to US customers will inevitably be asked to meet SOC2, while other sectors, or those targeting European customers, might favour ISO.
That being said, many organisations choose to implement both standards since they complement each other - ISO 27001 provides a comprehensive security management framework, while SOC2's privacy criteria offers specific guidance for handling personal data.