Differences and Similarities between ISO 27001 and SOC 2

In an era of growing concern about data security, how can businesses ensure they protect sensitive information while maintaining customer trust? The increasing frequency of data breaches and evolving regulatory requirements highlight the importance of security standards in safeguarding business data.

As organizations strive to meet these challenges, compliance with established frameworks like ISO 27001 and SOC 2 plays a critical role. But what exactly are these standards, and how do they differ regarding their focus, implementation, and geographical relevance? 

In this blog, we’ll explore what SOC 2 and ISO 27001 are, their key differences, and how businesses can decide which framework—or combination of both—best suits their needs.

What are SOC 2 and ISO 27001?

Both ISO 27001 and SOC 2 are essential tools in the broader landscape of data security compliance. They help organizations safeguard sensitive data and demonstrate their commitment to robust data protection. Achieving compliance with ISO 27001 or SOC 2 assures customers, partners, and stakeholders that an organization is actively managing security risks and following industry best practices for data protection.

What is ISO 27001?

ISO 27001 is a globally recognized standard that provides a framework for establishing, implementing, and maintaining an Information Security Management System (ISMS). The primary objective of ISO 27001 is to help organizations manage sensitive information securely, ensuring that information remains protected from security threats such as unauthorized access, data breaches, and loss.

• ISO 27001 sets out specific requirements for creating and maintaining an ISMS, including risk assessment, security controls, and policies. 
• Achieving ISO 27001 certification demonstrates a company’s commitment to data protection and compliance with international standards. 
• This certification is especially valuable for organizations seeking to build trust with clients and stakeholders, particularly in global markets where information security is paramount.

What is SOC 2?

SOC 2, or System and Organization Controls 2, is a framework specifically designed for service organizations to assess their data’s security, availability, confidentiality, processing integrity, and privacy. It focuses on five Trust Services Criteria (TSC) that evaluate how well an organization’s systems and practices protect sensitive data and maintain customer trust.

• SOC 2 is more focused on the controls related to the service delivery of a company’s IT systems. 
• SOC 2 is especially relevant for technology, SaaS, and cloud-based service providers who must demonstrate their ability to protect customer data in the digital age.

Read: Enabling Global Regulatory Policies: A Comparison and Realization

Now that we’ve defined ISO 27001 and SOC 2, let’s explore their key differences in scope, implementation, and certification processes.

Key Differences Between ISO 27001 and SOC 2

While both ISO 27001 and SOC 2 are frameworks designed to help businesses manage and protect sensitive data, they differ in key aspects. Let’s take a closer look at these distinctions.

Aspect	ISO 27001	SOC 2
Scope and Focus	Comprehensive ISMS framework for managing information security across the organization.	Focused on Trust Services Criteria (TSC) to assess data security in service organizations.
Certification vs. Attestation	Certification after third-party audit confirming adherence to the full standard.	Attestation report issued by licensed CPAs on the effectiveness of security controls.
Geographical Relevance	Globally recognized across industries (Europe, Asia, etc.), ideal for international operations.	Primarily North American standards, especially for SaaS and tech firms.
Implementation	Prescriptive, with specific controls and documentation required for compliance.	Flexible, allows businesses to design their own controls based on TSC principles.
Risk Management	Formal risk assessment and documented treatment plans for information security risks.	Risk controls are focused on customer data security but do not have a mandatory risk management framework.
Control Set	Includes 14 control domains (e.g., access control, business continuity, cryptography).	Focuses on 5 Trust Services Criteria, offering less prescriptive controls.
Audit Frequency	Annual audit for certification renewal.	Annual or semi-annual attestation with Type 1 and Type 2 reports.
Applicability	Suitable for all industries, especially those with global operations requiring stringent security.	Primarily for service providers, especially those in tech, SaaS, and cloud services.
Cost and Time Investment	Higher initial cost and time for implementation due to detailed documentation and audits.	Generally, it has a lower cost and faster implementation due to flexibility in meeting criteria.
Target Audience	Suitable for companies seeking comprehensive global data protection practices.	Ideal for service organizations aiming to prove security and privacy practices to customers.

Read: How to Understand SOC 2 Compliance and Data Security Standards for EdTech

Understanding the differences in scope is crucial, but it is just as important to understand how each standard validates compliance. Let’s examine the certification and attestation processes for ISO 27001 and SOC 2.

Certification and Attestation Processes

Both ISO 27001 and SOC 2 involve an independent review of an organization’s security practices, but they differ significantly in how compliance is validated.

1. ISO 27001 Certification Process

ISO 27001 requires a formal third-party audit for certification. The process is structured and includes the following key steps:

• Initial Assessment: An accredited certification body conducts a preliminary audit to assess an organization’s readiness for certification.
• Implementation: The organization must establish an Information Security Management System (ISMS) according to the detailed requirements of ISO 27001.
• Full Audit: A comprehensive audit of the ISMS is conducted to verify that the organization meets all security controls and policies.
• Certification: If the organization passes the audit, it receives the ISO 27001 certification. The certification is valid for three years, with annual surveillance audits to ensure continued compliance.

2. SOC 2 Attestation Process

SOC 2 involves an attestation report provided by a licensed Certified Public Accountant (CPA). The process includes:

• Self-Assessment: Organizations must evaluate their own practices and determine how they align with the Trust Services Criteria (TSC).
• Audit by CPA: A CPA conducts an audit to assess whether the organization’s controls meet the TSC. The audit may focus on either Type 1 (design of controls) or Type 2 (operating effectiveness of controls over time).
• Attestation Report: After the audit, the CPA issues a SOC 2 attestation report detailing the organization’s security practices and how they align with the TSC.
• Report Validity: SOC 2 reports are typically valid for one year and may be updated annually.

3. Differences in Documentation and Audit Approaches

• ISO 27001 requires extensive documentation of policies, procedures, and controls that demonstrate compliance with the ISMS. Audits are more prescriptive in terms of specific requirements and the documentation needed.
• SOC 2, however, is less prescriptive and allows organizations to design their own controls. Documentation focuses on security policies that align with the Trust Services Criteria, and audits focus on operational effectiveness.

Read: What are the different types of ISO standards? Which are the ones more relevant for GRC?

While the certification and attestation processes vary, ISO 27001 and SOC 2 share several key similarities that organizations should consider when deciding which standard best suits their needs.

Similarities Between ISO 27001 and SOC 2

While ISO 27001 and SOC 2 differ in several aspects, they share common objectives and principles regarding data security and risk management. Here are the key similarities between the two standards:

1. Shared Goals of Data Security, Confidentiality, Integrity, and Availability

Both ISO 27001 and SOC 2 are designed to protect sensitive data. They focus on safeguarding data through a variety of security controls that address the following:

• Confidentiality: Ensuring that only authorized individuals can access sensitive information.
• Integrity: Guaranteeing that data is accurate, complete, and trustworthy.
• Availability: Ensuring that data and systems are accessible when needed, minimizing downtime or system failures.

2. Independent Assessments for Validation

Both standards require independent assessments to verify compliance:

• ISO 27001 relies on a third-party auditor to assess an organization’s adherence to the full ISMS framework and issue certification.
• SOC 2 involves an attestation report issued by a licensed CPA who verifies that the organization’s controls align with the Trust Services Criteria.

3. Overlap in Security Control Criteria

Despite their differences in scope, both ISO 27001 and SOC 2 cover similar security control criteria. For example:

• Both frameworks emphasize access control, incident management, and risk assessment to protect sensitive data.
• Both require continuous monitoring and improving security measures to address evolving threats and vulnerabilities.

Read: The Ultimate Guide to ISO 27001

Now that we’ve covered the similarities, let’s shift our focus to some important factors you should consider when choosing between ISO 27001 and SOC 2, including customer location, industry standards, and business goals.

Considerations for Choosing Between ISO 27001 and SOC 2

When deciding between ISO 27001 and SOC 2, businesses must consider several factors that align with their goals, customer base, and operational needs. Below are some key considerations to guide your decision.

1. Factors such as Customer Location, Industry Standards, and Business Goals

• Customer Location: If your business operates globally or with clients outside of North America, ISO 27001 may be the better choice due to its global recognition. It is accepted in markets across Europe, Asia, and beyond, making it ideal for international business.
• Industry Standards: Some industries and customers may prefer one standard over the other. For example, businesses in North America or the SaaS and tech sectors may find SOC 2 more relevant, as it is widely recognized in these industries. 
• Business Goals: Consider your organization’s long-term goals. If you want to enter international markets or demonstrate a high level of information security, ISO 27001 may align more closely with those objectives. 

2. The Decision to Use Either or Both, Based on Comprehensive Security Needs

Some organizations may find that adopting both standards provides a more comprehensive approach to security. ISO 27001 and SOC 2 complement each other well, with ISO 27001 covering the entire information security system and SOC 2 focusing on the specific security controls that protect customer data.

For businesses with comprehensive security needs, pursuing both ISO 27001 and SOC 2 compliance might make sense. Let’s explore how adopting dual compliance can provide additional benefits.

Read: What is a Policy, and Why is Policy Management Important?

Benefits of Dual Compliance

While obtaining either ISO 27001 or SOC 2 compliance can offer significant advantages, achieving both can provide even more value. Organizations pursuing dual compliance with both standards can unlock numerous benefits beyond meeting security requirements.

1. Expanding Business Opportunities Globally

Achieving both ISO 27001 and SOC 2 compliance can open doors to new business opportunities, especially for organizations looking to expand their reach internationally.

• ISO 27001 is a globally recognized certification that appeals to international clients. It offers credibility and trust in regions such as Europe, Asia, and the Middle East.
• SOC 2 demonstrates high data security specifically to U.S.-based clients, especially in industries like SaaS, tech, and cloud services.

2. Strengthening Security Posture via Combined Controls

While ISO 27001 offers comprehensive guidelines for building and maintaining an ISMS, SOC 2 focuses on specific security practices relevant to service organizations. By adopting both standards, businesses can:

• Enhance their overall security posture: Combining ISO 27001’s prescriptive controls with SOC 2’s flexibility allows businesses to implement a broader and more customized approach to data security.
• Ensure continuous monitoring and improvement: Dual compliance helps businesses establish continuous improvement cycles, mitigating security risks through regular audits and assessments.

Looking for a head start on your compliance journey? Explore our Compliance Templates to streamline your ISO 27001 and SOC 2 documentation process and ensure you meet regulatory standards quickly and efficiently.

Achieving dual compliance might seem daunting, but it becomes a seamless process with the right tools.

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VComply’s comprehensive Governance, Risk, and Compliance (GRC) platform streamlines the journey toward ISO 27001 and SOC 2 compliance by offering:

• Centralized Management: Simplify compliance workflows with a unified platform that stores all your data in one place.
• Automated Compliance: Intelligent automation reduces manual effort in documentation, auditing, and assessments, ensuring timely compliance.
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Ready to simplify your compliance journey? Schedule a free demo to explore how VComply can help you automate your ISO 27001 and SOC 2 compliance processes, streamline audits, and improve risk management.

Final Thoughts

In today’s fast-paced, data-driven world, compliance is not just a regulatory necessity—it’s a strategic advantage. By adopting ISO 27001 and SOC 2, businesses can demonstrate their commitment to protecting sensitive data and building customer trust. However, managing these frameworks can be resource-intensive, and achieving dual compliance requires careful attention to detail. 

VComply’s automation and centralized management empower organizations to maintain robust, compliant systems without the administrative burden. We can help you navigate the complexities of compliance, ensuring you stay competitive while meeting regulatory standards.

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