In the digital age, where businesses grapple with vast amounts of data and complex infrastructures, cybersecurity has taken centre stage. With businesses of all sizes looking for ways to safeguard their information, two of the most widely recognised frameworks that companies turn to are SOC 2 and ISO 27001.

Both frameworks are robust and reputable, but how do they intersect, and more importantly, which one is the best fit for your company?

SOC 2: An Overview

Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 (Service Organization Control 2) is a framework primarily focused on American businesses. It evaluates and attests to a service organisation's operational controls against the five Trust Services Criteria. These criteria include security, availability, processing integrity, confidentiality, and privacy.

Key features of SOC 2:

• Specific to service providers that store, process or transmit customer data in the cloud.

• Requires periodic audits by external parties.

• Generates detailed reports which are typically private, intended for internal stakeholders.

ISO 27001: An Overview

Originating from the International Organisation for Standardisation (ISO) and the International Electrotechnical Commission (IEC), ISO 27001 is a globally recognised certification for information security management systems (ISMS). It sets out the criteria for establishing, implementing, maintaining, and improving an ISMS within the context of an organisation’s overall business risks.

Key features of ISO 27001:

• Applicable to any organisation, regardless of size or sector.

• Emphasises a continuous improvement approach.

• Requires annual audits and a three-year certification cycle.

The Intersections

While both SOC 2 and ISO 27001 underscore the importance of information security, there are areas of overlap:

• Focus on Information Security: Both frameworks prioritise safeguarding information, albeit with different approaches and scopes.

• Risk Management: Both frameworks emphasise the importance of identifying and managing risks specific to the organisation.

• Access Controls: Both highlight the need for robust controls to safeguard information from unauthorised access.

• Incident Response: Both demand a systematic approach to manage and mitigate information security incidents.

• Third-Party Assurance: Achieving certification or attestation for both frameworks offers external validation of an organisation's security posture.

The Differences

There are key differences between SOC 2 and ISO 27001:

• Geographical Relevance: While ISO 27001 is globally recognised, SOC 2 is more prevalent in North America, especially among cloud service providers.

• Scope of Application: SOC 2 is best suited for cloud-based service providers, while ISO 27001 has a universal application across industries.

• Certification and Reports: ISO 27001 results in a certification, whereas SOC 2 leads to an attestation report.

• Control Structure: SOC 2 is centred around its five Trust Services Criteria, while ISO 27001 provides a list of potential controls, allowing organisations to choose what's relevant to their context.

So, Which is Right for My Company?

The decision between SOC 2 and ISO 27001 often hinges on a few key considerations:

• Geographical Relevance: If your business primarily operates in the US or deals with American clients, SOC 2 might be more recognised and expected. On the other hand, ISO 27001, with its global reach, is apt for businesses with an international clientele or operations.

• Business Model: Service providers storing customer data in the cloud might lean towards SOC 2 due to its specificity. ISO 27001's broad application might appeal more to a diverse range of businesses.

• Stakeholder Expectations: Depending on your industry and client expectations, one framework might be more prevalent. For instance, tech companies in the US might be asked for SOC 2 reports more often, while global financial institutions might favour ISO 27001.

• Resource Commitment: SOC 2 requires periodic detailed audits, while ISO 27001 demands a consistent improvement approach with annual checks. Achieving and maintaining either standard requires investment in terms of time, expertise, and often financial resources. Assess your company's readiness and willingness to commit to the rigour of each framework.

Conclusion

Both SOC 2 and ISO 27001 are robust frameworks ensuring that your organisation prioritises data security. The choice between them isn’t about one being superior to the other. The decision should be focused on which framework aligns more closely with your business goals, model and geographic relevance. Engage with stakeholders, assess your business requirements, and consider consulting experts in the field (like de.iterate) to make an informed choice.