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In the current ever-changing digital environment, cybersecurity and compliance are not optional anymore but a necessity in business. Regardless of whether you work in SaaS, FinTech, or the healthcare industry, it is crucial to make sure that your organization is compliant with global security standards to protect sensitive information and build your customers’ trust. SOC 2 and ISO 27001 are two of the most well-known frameworks in space. But which one is right for your business? We will discuss their differences and explain how to choose the most appropriate one for your compliance objectives.
Understanding ISO 27001
ISO 27001 is an internationally recognized standard that stipulates the guidelines to establish, implement, maintain, and constantly enhance the Information Security Management System (ISMS).
This framework follows a risk-based approach to information security. It assists organizations in detecting threats and applying relevant controls and maintaining compliance with constant monitoring and audits. Achieving ISO 27001 certification will help show your clients and other regulators that your organization is proactive and systematic in managing information security.
Key Features of ISO 27001:
- International visibility and reputation in business.
- Focus on risk management and constant improvement.
- Requires internal and external audits.
- Relevant to organizations of any size or industry.
The ISO 27001 comes in handy, especially when the business is based in more than one country or is dealing with a lot of sensitive information, like in the case of a financial institution, SaaS provider, or medical organization.
Understanding SOC 2
SOC 2 (Service Organization Control 2) is a standard of compliance that was created by the American Institute of CPAs (AICPA). It is specifically targeted at service providers who either store, process, or handle customer data in the cloud.
SOC 2 audits evaluate the internal controls of an organization against the five Trust Services Criteria (TSC):
- Security
- Availability
- Processing Integrity
- Confidentiality
- Privacy
SOC 2 reports can be of two types:
- Type I: Measures the design of controls at a particular point in time.
- Type II: Tests the effectiveness of those controls in the line of operation over a specific time (typically, 6-12 months).
SOC2 compliance demonstrates to your clients that your organization has implemented and maintained effective data protection measures.
Key Differences between ISO 27001 and SOC 2
Although both frameworks strive to improve the security of information and establish trust, they vary in their focus, applicability, and outcomes.
| Aspect | ISO 27001 | SOC 2 |
| Origin | International (ISO/IEC) | United States (AICPA) |
| Focus | Comprehensive information security management | Data security and operational effectiveness |
| Applicability | Global, industry-agnostic | Primarily for technology and cloud service provider. |
| Audit Requirement | Accredited body certification | A report issued by an independent CPA or audit firm. |
| Outcome | ISO 27001 certificate | SOC 2 Type I or Type II report. |
If you are a global business that requires formal certification to correspond to global standards, ISO 27001 can be the solution. But in any case, when you are a cloud-based service provider with US clients, SOC 2 compliance will be a better fit.
Selecting the Right Framework for Your Business
The choice between ISO 27001 and SOC 2 usually depends on your sector or your geographic span, and the specifications of your customers.
Choose ISO 27001 if:
What you require is a globally recognized certification that encompasses end-to-end information security management.
Choose SOC 2 if:
You are a SaaS or cloud participant targeting the US market and need to prove compliance with a comprehensive audit.
For some companies, implementing both frameworks offers the best competitive advantage, encompassing both international and US-based compliance standards.
How SecurifyAI Can Help
Navigating the complexities of ISO 27001 certification or a SOC 2 compliance audit requires expert help. At SecurifyAI, we specialize in providing end-to-end compliance support, such as SOC 2 gap assessment, policy development, risk management, and audit readiness.
With our team of qualified professionals, we ensure not only that your business complies with all compliance requirements but also that it strengthens its overall security posture.
Contact SecurifyAI today to determine the compliance framework (ISO 27001 or SOC2) best fits your business and get on the path to secure, successful compliance .