As cybersecurity becomes a boardroom priority, companies — especially SaaS providers — are being asked to demonstrate robust information security controls. Among the most sought-after standards are ISO 27001 and SOC 2. While they aim for the same outcome — enhanced security and customer trust — their approaches differ significantly.
In this article, we’ll break down both frameworks, highlight their key differences and similarities, and help you determine which compliance route fits your organization’s needs.
What is ISO 27001?
ISO/IEC 27001 is an internationally recognized framework focused on building and managing an Information Security Management System (ISMS).
Developed by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC), it provides a risk-based, systematic approach to securing sensitive information. The goal is to preserve the confidentiality, integrity, and availability of information across the organization.
The standard was first introduced in 2005 and last updated in 2022. It includes 114 controls across 14 domains (Annex A), covering areas like access control, asset management, cryptography, and supplier relationships.
[Image Placeholder: ISO 27001 control structure infographic]
What is SOC 2?
SOC 2 (System and Organization Controls 2) is a security framework created by the American Institute of Certified Public Accountants (AICPA). It evaluates how well an organization implements controls related to the Trust Services Criteria (TSC):
– Security (mandatory)
– Availability
– Confidentiality
– Processing Integrity
– Privacy
SOC 2 is not a certification — it’s an attestation report provided by a licensed CPA firm. The report reflects how effectively your organization has implemented controls over time (Type II) or at a point in time (Type I).
Shared Traits Between ISO 27001 and SOC 2
Although ISO 27001 and SOC 2 come from different origins and follow distinct methodologies, they have several common principles that make them comparable security frameworks. Here’s how they align:
1. Widely Accepted but Not Mandatory
Both ISO 27001 and SOC 2 are voluntary compliance standards, unlike laws such as GDPR or HIPAA. Despite not being legally required, these frameworks are highly respected across industries for their robust data protection guidelines and are often expected in high-trust partnerships and enterprise deals.
2. Significant Overlap in Controls
There’s a high degree of similarity — over 90% — between the control objectives in both standards. Core controls around areas like incident response planning, access restrictions, physical and environmental security, change management, vendor oversight, and data backups are common across both frameworks, even if they’re structured differently.
3. Centralized Focus on Information Security
At their core, both standards are dedicated to securing sensitive information. While SOC 2 emphasizes safeguarding customer data through its Trust Services Criteria, ISO 27001 provides a holistic approach via an organization-wide Information Security Management System (ISMS). In both cases, data privacy, integrity, and availability are top priorities.
4. Crucial for Building Client Confidence
Earning ISO 27001 certification or a SOC 2 attestation can act as a competitive advantage, especially when engaging with large clients or regulated industries. These certifications show that your company is serious about protecting customer data and following industry best practices.
5. Independent Third-Party Assessments Required
Both standards require validation by external experts. For ISO 27001, this means being assessed and certified by an accredited body. In contrast, SOC 2 involves a formal audit conducted by a certified public accountant (CPA), resulting in an attestation report. Either way, an unbiased evaluation is a key part of the process.
6. Emphasis on Continuous Compliance
Neither ISO 27001 nor SOC 2 is a one-time activity. Each framework emphasizes ongoing reviews, updates, and monitoring to maintain compliance over time. Organizations must continuously evaluate their security posture, update controls, and prepare for annual audits or surveillance assessments to remain aligned with the standards.
Choose ISO 27001 if:
– You serve international clients
– You want a structured, enterprise-wide ISMS
– You prefer a globally recognized certification
Choose SOC 2 if:
– You cater mainly to U.S.-based clients
– You’re a cloud/SaaS company looking to demonstrate specific data handling controls
– You want a report-driven attestation rather than a formal certification
Choose Both if:
– You serve both global and U.S. markets
– You want to build a strong competitive edge
– You’re scaling rapidly and need layered assurance
The Smart Compliance Strategy
Rather than choosing one over the other, many organizations are leveraging both frameworks. A dual-compliance strategy allows businesses to address the needs of varied stakeholders while strengthening their security posture end-to-end.
Choosing between ISO 27001 and SOC 2 doesn’t have to be overwhelming. Whether you’re securing global partnerships or building trust with U.S.-based clients, Finstein’s cybersecurity specialists will help you design a compliance roadmap that fits your growth goals.
Book a free consultation with our compliance team and discover the fastest path to SOC 2 or ISO 27001 readiness
For expert insights, visit cyber.finstein.ai
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