SOC 2 or ISO 27001 – Which One Do You Need?

In the wide world of information security, there are many different frameworks, standards, and systems in use to help assume a secure stance against threats. Two commonly seen frameworks are SOC 2 and ISO 27001. How do these two stand in comparison to each other, and which one do you need for your business? Let’s discuss.

The Rundown on ISO 27001

ISO 27001 is a broad, general-use information security framework developed by the ISO/IEC partnership. It’s a set of requirements and security standards used to develop an information security management system, or ISMS, that helps you maintain a high level of security and control over the information your business handles. We’ve written about ISO 27001 extensively before, so if you have further questions, feel free to peruse our blog or reach out directly.

The information secured by ISO 27001 can be very broad. Around the world, businesses use it for everything from financial information and intellectual property to employee data to third-party data your business handles. Any information that requires protecting can be protected using an ISMS developed based on ISO 27001.

ISO 27001’s framework is based on three axes of influence.

These are:

• The availability of the data, including controlling who is authorized to access it and who isn’t.
• The confidentiality of the data, including identity and access verification and user authorization.
• The integrity of the data, including restricted ability to edit or manipulate the data.

These are the same three categories as many other frameworks, including FedRAMP and CMMC. As such, they’re quite common and familiar to people working in infosec, no matter the framework or standard you use.

The Rundown on SOC 2

What about SOC 2? SOC 2 stands for Service Organization Control 2. It’s an outline for organizational controls across five service principles and was developed by AICPA, the American Institute of Certified Public Accountants.

Those five principles are:

• Security
• Availability
• Process Integrity
• Confidentiality
• Privacy of Customer Data

Taken together, this forms a framework similar to other information security frameworks, though with two additional categories that break up different aspects of the larger categories encompassed by frameworks like ISO 27001.

One interesting aspect of SOC 2 is that of these five categories, only one of them – Security – is actually mandatory. The other four are not necessarily mandatory, and an organization can evaluate which of them is meaningful to their business. For example, if a business does not handle information that is in any way confidential, the confidentiality aspect can be ignored; similarly, if they don’t have customers or customer data to process, they don’t need the privacy of customer data aspect.

SOC 2 also has two different kinds of audits, named Type 1 and Type 2. Type 1 audits are snapshot audits. They evaluate your current security posture and issue a determination. Type 2 is more of an ongoing audit, evaluating security over the course of 6-12 months. This is more time-consuming but more comprehensive and offers a better evaluation of your business’s ability to comply.

Exploring the Differences Between ISO 27001 and SOC 2

There are quite a few differences between these two information security frameworks, even though the same overall goal is achieved using them both.

The Origin of the Frameworks

On an obvious level, the first significant difference is the origin of the two frameworks. ISO 27001 is an international standard developed by an international coalition. Meanwhile, SOC 2 is developed and maintained by an American organization.

As such, SOC 2 is largely considered to be an American standard and is rarely seen outside of the country, though other countries may have their own equivalents, which may even be modeled after SOC 2 itself. Conversely, ISO 27001 is commonly seen nearly everywhere in the world and even throughout the United States, though American companies will need more domestic framework certification to work with the federal government.

The Scope of the Frameworks

Another significant difference is in the scope of the two frameworks. ISO 27001 develops an entire ISMS, which encompasses all of the business processes, procedures, training, systems, and tools in use to protect and control information handled by the business in question. It’s an all-encompassing information control system.

In comparison, SOC 2 is relatively limited. It’s more of a focused information control framework, and encompasses a range of basic and essential data security controls, but less in the way of broader organizational controls.

The Approach of the Frameworks

A third significant difference is how the two approach security.

ISO 27001 focuses on setting up an ISMS, which the business then complies with by adapting and changing procedures, policies, and systems. A business attempting to earn certification with ISO 27001 will start by developing this ISMS, implement it, and then pass an audit to validate it.

SOC 2, meanwhile, operates more like a checklist and audit process. It isn’t a framework you use to develop information controls; rather, it simply checks for control of information and validates whether or not your organization passes with what security it already has in place.

This is not to say that a business can’t take the checklist of auditing information in SOC 2 and create an ISMS out of it; rather, it means that it’s not part of the formalized process, and is something done outside of the scope of the SOC 2 process itself.

The Flexibility of the Frameworks

In many ways, the ISO 27001 framework is extremely rigid. It has a long series of information controls and control families, and all of these need to be reviewed individually. Each one is either determined to be relevant to the organization and used in the development of the ISMS, or is irrelevant to the organization and is ignored with a waiver.

This is because ISO 27001 was designed to be as large and all-encompassing a framework as possible. It’s meant for any and all industries and any and all geographic locations, with relatively few exceptions. It’s only when you go above and beyond basic controlled unclassified information and similar information that further deviation is necessary and under certain extenuating circumstances.

SOC 2, meanwhile, is a much more flexible and customizable standard. It’s meant for an organization to customize and tailor it to the unique needs, standards, and frameworks already applicable to their industry, region, and type of business. Since different industries handle different kinds of information at different levels across different regions, SOC 2 attempts to validate security across them all without requiring a lot of additional work that might not be relevant to the organization in question.

The Results of the Frameworks

One final detail of the difference between ISO 27001 and SOC 2 is what you get out of the end of it. ISO 27001 leads you to the creation of an ISMS and expects you to maintain that ISMS on an ongoing basis. It awards you with a certification that you’ve passed the audit process – an intensive process – and expects you to perform continuous monitoring and pass additional annual audits and periodic recertification.

SOC 2, meanwhile, performs an audit and gives you an attestation report if you meet SOC 2 standards after the audit. It is not a certification, and an organization cannot be “SOC 2 Certified.” There are also no ongoing obligations to maintain security after the SOC 2 audit, though, of course, organizations are well advised to do so.

Exploring the Similarities Between ISO 27001 and SOC 2

Reading the above, it’s reasonable to conclude that the two frameworks are not comparable. Indeed, in broad strokes, in purpose, and in many other attributes, they’re extremely different. However, they are both similar in a few key respects.

Both ISO 27001 and SOC 2 are resources that an organization can use to evaluate its current security posture and improve that posture for better security moving forward. They provide resources and information that can be used for this improvement, even if the way they go about it is very different.

Both ISO 27001 and SOC 2 are developed in line with modern best practices and security standards, as their parent organizations perceive it. Much of this information comes from the same sources; the ISO/IEC and NIST both share a lot of DNA, and have a lot of overlap. Most other security frameworks are based on this comprehensive understanding of information security.

Both ISO 27001 and SOC 2 have a lot of overlap in the implementation of security for the above reasons. That means, in particular, that if you achieve one, you are at least somewhat on your way to achieving the other. Since ISO 27001 is significantly more strict, achieving it is very likely to put you on good ground to get SOC 2 attestation. The opposite is harder but not as bad as starting from scratch.

Both ISO 27001 and SOC 2 help a business in many of the same ways. They help build up trust and value with vendors, partners, suppliers, and sophisticated customers who know and care about those frameworks and what they mean. They help maintain compliance with standards that may be relevant to the industry.

What About SOC 3?

In many cases, when you talk about a security framework, an iteration in the number attached to it is a versioning system, and the more recent the version, the more likely it’s the one you need to do. For example, CMMC is currently in place, and CMMC 2 is on the horizon as a new version of the framework.

SOC is not quite the same. SOC 2 and SOC 3 are, effectively, the same set of standards. The difference is in the kind of report they generate. A SOC 2 report is generated with detailed and technical information about your business and its systems and security. It is meant for internal use with stakeholders, partners, and customers.

In contrast, SOC 3 is a similar report that is broader and less specific. Rather than internal use, it is meant for external use, where it can be published for public viewing, used in marketing campaigns, and more. It also contains less detail that could be used in an actionable way against your business.

Compliance with the SOC framework is the same for both SOC 2 and SOC 3; it’s only the output that changes.

Does Your Business Need ISO 27001 or SOC 2?

The crux of the issue when discussing the comparison between information security frameworks like ISO 27001 and SOC 2 is the decision regarding which one you need. So, do you need ISO 27001, SOC 2, neither, or both?

First of all, neither one is mandatory in general. While many individual contracts, partnerships, or relationships with organizations and entities like governments may require a security framework, often they either have their own in mind, or they specify one you need to follow.

So, if a contract you want to sign, a partnership you want to form, or a customer you want to land requires either ISO 27001 or SOC 2, then it may as well be mandatory for you to achieve.

SOC 2 is a good auditing process to achieve an attestation document and report that can be used for a variety of purposes. It’s a good way to spot-check your current security in a relatively low-stakes environment. Since you aren’t at risk of losing a certification if a SOC 2 report finds a gap, and since the audit is faster and less thorough, it’s a cheaper way to evaluate your security.

ISO 27001, meanwhile, is the primary go-to security framework for international organizations and foreign governments. It’s broadly one of the most well-respected and well-known frameworks in the world. The downside is that it’s very intensive and consequently expensive to achieve.

If you’re in a position to pursue either one, and you’re looking for a way to track all of the information and paperwork you need to accumulate, why not consider the Ignyte Platform? We created the Ignyte Platform as a comprehensive way to help achieve success, authorization, or attestation in any framework, from ISO 27001 to FedRAMP to SOC 2 or 3. Simply request a demo, and let us show you what Ignyte can do for you!