ISO 27001 and SOC 2, Type 2 are two of the most prominent regulatory frameworks in the cybersecurity industry. While both are designed to enhance information security, they serve different purposes and audiences, and therefore it is important to understand their differences in order to safeguard your organisation’s data most efficiently.
In this blog, we’ll delve into the nuances of ISO 27001 and SOC 2, Type 2, helping you determine which framework aligns best with your organisation’s goals and needs. Whether you’re a startup or an established enterprise, choosing the right certification can make all the difference in building trust with your clients and protecting sensitive information, while avoiding costly breaches and repercussions.
Do I actually need certification?
A lot of organisations with limited time and budget can find it difficult to know if cybersecurity certifications are a worthwhile investment.
The complexity of a cybersecurity strategy should be tailored to the size, sector, and customer base of your business.
For instance, larger organisations handling huge amounts of sensitive data—such as financial or healthcare information, or those with significant stakeholders—are strongly encouraged to pursue certification. SaaS organisations where a customer’s data is handled and utilised on their behalf are also strongly advised to seek certification.
While certifications are encouraged for businesses of any scale, it’s important to be realistic and recognise the financial constraints of smaller businesses and start-ups.
Smaller organisations are advised to consider budget limitations and focus on prioritising essential cybersecurity defences first.
It doesn’t matter what size or sector of company you are, it is imperative to have cyber essentials methods in place. Most businesses- regardless of how ‘technical’ they may seem- will be responsible for handling customer data in some way. For example, a hairdresser’s will likely have an online customer management system for appointment upkeep, cardholder information, and contact lists. Anywhere that sensitive information exists unprotected is by default a target for malicious hackers, and to store this data with no protective measures in place is all the more inviting for them.
What is ISO 27001?
ISO27001 is considered the gold standard for Information Security Management Systems (ISMS).
It’s an internationally recognised standard, meaning most European international businesses would be expected to have ISO27001 certification.
ISO 27001 includes more than 90 controls, but not all of them will apply to every organisation. Therefore, it's important to understand that implementing all of them is not required. By conducting an assessment, businesses can identify which controls are most suitable for their needs and then implement them accordingly.
An ISMS is a sure-proof way to continually assess and evaluate the cybersecurity needs of your organisation, and a critical step in reaching ISO27001 compliance.
What is an Information Security Management System?
Without an Information Security Management System in place, organisations cannot achieve ISO27001 certification.
An ISMS typically involves:
- Risk assessment and management: the identification and assessment of any security risks that could jeopardise information.
- Implementation of Risk Control: the implementation of technical, organisational, and physical controls to help mitigate the risks identified.
- Proof of continuous improvement: organisations endeavouring to remain ISO27001 compliant must evidence their risk control methods and take steps to continually improve and optimise their cybersecurity strategy.
It’s important that your ISMS meets the international standards for information security in order for your organisation to achieve ISO27001 compliance.
That’s where UKAS- a national accreditation body for the United Kingdom- steps in. It’s their role to ensure your organisation is competent and operating to the regulatory standards. In two stages, UKAS will visit your organisation to review your ISMS and ensure you are complying with the various steps, with the eventual outcome of recieving certification if you prove successful.
What is SOC 2, Type II?
SOC 2 is a voluntary compliance standard for service organisations, developed by the AICPA, which specifies how organisations should manage customer data. SOC 2 was invented to evaluate the strength of an organisation’s security controls, and the storing, processing and transmitting of any and all data within a service organisation.
Which industries need SOC 2 compliance?
- Cloud service providers
- Financial Services
- Healthcare service providers
- Third-party Saas vendors
- Any organisation that values data security.
What does SOC 2 involve?
An observation period in which an external auditor will evaluate your organisation and how you control your data environment. At the end of the observation period, the auditor will make an assessment based off the evidence accrued and write a report, determining if you have passed or failed. This observation period traditionally lasts between 3-6 months.
The report produced by the auditor, after months of evaluating your organisation’s work processes, can be shared with your clients if desired. This allows them to view a comprehensive and authentic account of your data collection and storage practices.
Where do they overlap?
Both SOC 2 and ISO 27001 require organisations to have strong, well-defined processes and controls in place for managing data security. Because of this, their methodologies and objectives largely overlap. Some of their key similarities involve:
Processes and Controls
Both certifications require organisations to have strong data security processes and controls in place. ISO 27001 provides specific controls to implement, while SOC 2 requires controls under five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
Evidencing Compliance
Both certifications require evidence of compliance. ISO 27001 requires ongoing monitoring and internal audits, while SOC 2 involves an independent audit with a report that assesses data security over a defined period (typically 3-6 months).
What’s the difference between ISO 27001 and SOC 2?
While both ISO 27001 and SOC 2 aim to ensure strong data security, their approach and requirements differ.
- ISO 27001 focuses on the broader framework of an Information Security Management System (ISMS), with over 90 controls that organisations can customise to their specific needs. It's an international standard, making it primarily relevant for companies with global operations or those in industries with strict data protection requirements. Achieving ISO 27001 certification involves a thorough assessment of risks and security measures, with a strong emphasis on continuous improvement and compliance.
- SOC 2, on the other hand, is more flexible and focuses specifically on the management of customer data within a service organisation. It evaluates the security controls in place regarding data collection, processing, and storage. A SOC 2 audit is conducted over a set observation period (typically 3–6 months), after which a report is generated. This report can then be shared with clients to assure them that their data is being handled securely.
Which is best for my business?
If your organisation operates internationally within the EU, starting your cybersecurity certification journey with ISO 27001 is highly recommended. When you begin attracting American clients, it's a good idea to consider obtaining SOC 2 certification as well.
For businesses primarily serving American or North American clients, SOC 2 should be your primary focus. However, if you later expand to serve European clients, ISO 27001 will be essential to meet their standards.
In most industries, possessing either ISO 27001 or SOC 2 certification is typically sufficient. However, in more highly regulated sectors like healthcare and fintech, companies may require both certifications as proof of your commitment to robust data protection practices.
To conclude, choosing the right cybersecurity certification for your organisation is a critical step in safeguarding sensitive data, building client trust, and ensuring long-term business success. Both ISO 27001 and SOC 2, Type 2 offer valuable frameworks for data security, but their differences make them suitable for different types of organisations and industries.
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