ISO 27001 vs SOC 2: Which Framework is Right for Your Business?

Understanding the Fundamentals

ISO 27001

ISO 27001 is an international standard for Information Security Management Systems (ISMS). It provides a framework for establishing, implementing, maintaining, and continually improving information security.

• Published by ISO (International Organization for Standardization)
• Certification valid for 3 years with annual surveillance audits
• Globally recognised, particularly in Europe and Asia
• Prescriptive framework with 93 controls (Annex A)

SOC 2

SOC 2 (System and Organization Controls 2) is an auditing framework developed by the AICPA for service organisations. It evaluates controls relevant to security, availability, processing integrity, confidentiality, and privacy.

• Developed by AICPA (American Institute of CPAs)
• Reports valid for 12 months
• Primarily recognised in North America
• Flexible framework based on Trust Services Criteria

Key Differences

Scope and Focus

• ISO 27001: Organisation-wide ISMS covering all information assets
• SOC 2: Specific systems or services, defined by the organisation

Geographic Recognition

• ISO 27001: Global recognition, especially Europe, Middle East, Asia-Pacific
• SOC 2: Strong in North America, growing international acceptance

Audit Approach

• ISO 27001: Certification audit by accredited certification body
• SOC 2: Attestation by licensed CPA firm

Report Types

• ISO 27001: Certificate (public) and audit report (typically confidential)
• SOC 2 Type I: Point-in-time assessment of control design
• SOC 2 Type II: Assessment of control design and operating effectiveness over a period (typically 6-12 months)

When to Choose ISO 27001

• Customers primarily in Europe, Middle East, or Asia-Pacific
• Regulatory requirements specify ISO 27001 (e.g., some government contracts)
• You want a comprehensive, organisation-wide security programme
• Long-term certification (3 years) is preferred
• You need a framework that integrates with other ISO standards (9001, 22301)

When to Choose SOC 2

• Customers primarily in North America
• You're a SaaS or service provider
• Customers specifically request SOC 2 reports
• You want flexibility in defining scope
• You need to demonstrate controls over a specific system or service

Implementation Considerations

Timeline

• ISO 27001: Typically 6-12 months for initial certification
• SOC 2 Type I: 3-6 months
• SOC 2 Type II: 9-15 months (including observation period)

Cost Factors

• Implementation effort (internal or consultant)
• Technology investments (GRC tools, security controls)
• Audit/assessment fees
• Ongoing maintenance and surveillance

Resource Requirements

• ISO 27001: Requires dedicated ISMS management, internal audit capability
• SOC 2: Requires evidence collection, control monitoring

Pursuing Both Frameworks

If your customer base spans multiple regions, pursuing both may be necessary. Strategies for efficiency:

• Implement ISO 27001 first as the comprehensive foundation
• Map ISO 27001 controls to SOC 2 Trust Services Criteria
• Use a single GRC platform to manage both programmes
• Coordinate audit timing to reduce disruption
• Leverage common evidence across both assessments

Trust Services Criteria vs Annex A Controls

SOC 2 Trust Services Criteria

• Security: Protection against unauthorised access (required)
• Availability: System availability for operation
• Processing Integrity: System processing is complete and accurate
• Confidentiality: Information designated as confidential is protected
• Privacy: Personal information is collected and used appropriately

ISO 27001 Annex A (2022 version)

• 93 controls across 4 themes
• Organisational controls (37)
• People controls (8)
• Physical controls (14)
• Technological controls (34)

Making the Decision

Consider these questions:

• Where are your customers located?
• What do your contracts or RFPs require?
• What do your competitors have?
• What are your regulatory obligations?
• What resources can you dedicate?

Conclusion

Both ISO 27001 and SOC 2 demonstrate commitment to security and can satisfy customer requirements. The right choice depends on your customer base, geographic focus, and business model.

For many growing organisations, starting with one framework and expanding to the other as business needs evolve is a pragmatic approach. The foundational work transfers significantly between the two.