Is ISO 27001 the same as SOC 2

When it comes to data security, it seems like there's a whole alphabet soup of acronyms. Two that often pop up are ISO 27001 and SOC 2. Both are widely used compliance standards around the world, providing strategic frameworks to measure your organisation’s security posture and systems against, which contribute significantly to the protection of sensitive data, and you might be mandated to comply with at least one of these standards before prospects agree to do business with you.?

But are they the same thing? Do they even do the same thing? The short answer is, not quite. One study claims that the two standards share 96% of the same controls, whereas another study based on ISO 27001 and SOC 2 mapping suggests that they share 80% of the same controls.?

Let’s unpack them and figure out what makes them tick. In this article, we will talk about what ISO 27001 and SOC 2 are, key differences and key similarities between them, and which one you should choose for your organisation.?

1. ISO 27001: Your Security Management System's Foundation?

Think of ISO 27001 as the blueprint for your organization's security system. It's an international standard published by The International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) that outlines how to establish, implement, maintain, and continually improve your Information Security Management System (ISMS). It's not about telling you how to secure things, but rather, it gives you a framework and structure to manage the process of protecting your valuable data and information assets. Getting ISO 27001 certification means you’ve built a robust, well-managed security operation that meets globally recognized best practices. Think of it as setting up your house on a solid foundation. To achieve compliance, regular risk assessments, identification and implementation of security controls, and regular review of the effectiveness of your ISMS must take place.?

2. SOC 2: Keeping Your Customer's Data Safe?

SOC 2, published by the American Institute of Certified Public Accountants (AICPA), on the other hand, is more like a report card, especially for service-based organizations that handle sensitive customer data (think SaaS providers, cloud platforms, etc.). It stands for "System and Organization Controls 2" and focuses on how your organization protects its data, especially when you’re not the one owning the servers. SOC 2 compliance is demonstrated by a report, delivered by a third-party auditor. It looks at how well you meet specific trust service criterias related to security, availability, processing integrity, confidentiality, and privacy. It gives you and your customers peace of mind knowing that your vendor (or you) is serious about security. Think of it as showing your neighbor the security system you have set up in your house.?

3. The Nitty-Gritty: Key Differences?

The key difference between ISO 27001 and SOC 2 lies in their scope. While ISO 27001 tells you how to develop and maintain an effective ISMS, SOC 2 simply audits the current security controls in place. Hence, ISO 27001 requires extensive compliance measures in order to achieve certification.?

?SOC 2 is more flexible in its approach to certification and is customisable based on the specific service organisation. Out of the five trust service criteria, only security is mandatory; hence, you can choose which criteria to focus on in addition to security to build your security posture for audit. SOC 2 is also not a certification per se, but an attestation report by an independent CPA firm. Learn more about how to obtain SOC 2 certification for your organisation here (link to SOC 2 article).?

ISO 27001, however, is a certification provided by an accredited registrar and involves extensive review and monitoring of your entire ISMS. The nature of the ISO audit is prescriptive, which implies that the standard is implemented uniformly across all kinds of businesses and industries. The audit involves monitoring of 7 main requirements with 93 suggested controls. The 7 required categories are as below:?

• Context of the organization?

• Leadership?

• Planning?

• Support?

• Operation?

• Performance Evaluation?

• Improvement?

Click here to know more about the ISO 27001 certification process, phases, and timeline.?

?4. Where They Overlap: Key Similarities?

Even though they are different, there are overlaps! Both ISO 27001 and SOC 2 are aimed at achieving a common goal: protecting sensitive information. They both emphasize the importance of:?

• Risk management: Identifying and addressing potential security threats.?

• Policies and procedures: Having clear guidelines for data handling and security.?

• Continuous improvement: Regularly reviewing and updating security practices.?

• Control Environment: Creating a security-first culture.?

• Security awareness training: Educating staff on security best practices.?

?Essentially, if you’re pursuing SOC 2, having an ISO 27001 framework already in place can be a huge advantage, as it sets a strong base for controls and processes.?

5. So, Which One is Right for You??

Okay, so which one should you be chasing? It really depends on your situation and your business needs. You can consider the below criteria to decide on which certification to go for:?

• Location Relevancy: Although both standards are recognised globally, SOC 2 is more prevalent in North American regions. ISO 27001 is popular internationally.?

• Timeline: The ISO 27001 process takes about six to 12 months, and the SOC 2 process takes about three to six months.?

• Granularity of report: ISO 27001 provides a less granular and higher-level view of the audit; however, SOC 2 reports are more granular and give details on every aspect of the audit, including the external auditor’s opinion, management assertion, system description, effective controls list, and tests.?

• Audit Cost: The audit cost for ISO 27001 is higher than that of SOC 2 attestation as ISO 27001 audit requires extensive documentation to prove that your ISMS is compliant.??

• If you are building a security culture, ISO 27001 is a great first step. It is a universal standard and helps you understand and manage your company's security program.?

• If you’re a service provider, particularly one that handles customer data, a SOC 2 report is often a necessity for gaining trust and winning business. It is also something your customers will most likely ask you for.?

?Sometimes, you’ll want both. If you're a growing company providing services, having ISO 27001 as your overall security framework and a SOC 2 report to demonstrate your controls is a powerful combination.?

Think of it like this: ISO 27001 gives you the security foundation, and SOC 2 provides the proof.?

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