What’s the Difference Between SOC 2 and ISO 27001: Why Should You Care?
Your company’s data is one of the most important resources you have. Take the time to understand all layers of your security program, from policies, procedures, and technologies to education sessions, regular audits, and more, so that your team can take a proactive approach to balance protection with efficiency.
Do you know the difference between SOC 2 and ISO 27001? If not, read this blog article to learn how these two prestigious certifications can help your organization become more secure than ever.
What is SOC 2?
The American Institute of Certified Public Accountants created the SOC 2 structure (AICPA). It compares a company’s current security practices with a list of standards it must meet. If they can’t meet these standards, they must make changes to comply with SOC 2. While requesting a SOC 2 compliance audit is unnecessary, you must pass this annual process to earn SOC 2 compliance. It is a sentence rewriter.
An external auditor conducts a SOC 2 audit to measure the effectiveness of the five trust service categories:
- Security
- Availability
- Processing integrity
- Confidentiality
- Privacy
The SOC II standard is the next evolution for security audits. Third-party experts do these audits, and they can upgrade them to meet your specific needs. They’re customized for businesses that might need more tailoring in their configuration. The service provides qualitative analysis of how the company operates regarding data security.
What is ISO 27001?
As information security is becoming an important topic, ISO has created the International Standard of Organization 27001. Companies certified with ISO 27001:2013 will have more stringent requirements than extra-sensory control 2. To obtain a certification with ISO 27001, companies must only come up with 114 rules and ten management system clauses. In contrast, Extra-Sensitive Control II requires a system to assess against only 5 trust service categories.
The ISO 27001 information security management system (ISMS) protects data from various threats. It is especially true for companies that use this standard because it requires you to establish a sound security method for your employees and information. ANAB oversees the certified businesses, but each business must follow the same worldwide standards around data protection.
Ensuring they provide the best services and security is key to any business. ISO 27001 is a standard that global organizations are adopting so there’s consistency throughout their industry and peace of mind in knowing their board members, partners, and collaborators are following the best practices for Information Security Management Systems (ISMS).
When Should You Get SOC 2 Certification vs. ISO 27001?
An audit can put a single task or a part of a process to the test. SOC 2 compliance applies to the reporting organization’s data systems but not necessarily its technology infrastructure.
Furthermore, SOC 2 is widely accepted in North America and among technical support. The downside is that SOC 2 compliance may not be as valuable for international organizations outside the United States. ISO 27001 has greater validity with international organizations in most industry sectors due to its general standards.
If you’re a potential vendor, you may require ISO 27001 certification to show potential customers that your data is secure. However, you may have this certification but not SOC 2.
How to Achieve SOC 2 Compliance
A company will need to hire an external auditing team of a Certified Public Accountant (CPA) or Chartered Accountant (CA) to conduct the SOC II compliance audit.
The audit team works on an extensive review based on the five trust service categories. An initial type 1 audit undertake to determine the current security practices and make recommendations for improvements.
A type 2 audit is then implemented typically after six months, which is usually more time-consuming than the initial type 1 audit.
How to Acquire ISO 27001 Certification
If you want to ensure your website is secure and complies with ISO 27001 standards, an accredited registrar will conduct the ISO 27001 audit. This independent auditor will likely affiliate with ANSI National Accreditation Board in the United States. The external audit has three stages:
- Formal review of the current ISMS for the existing documentation
- Formal audit to issue ISO 27001 certification
- Follow-up from time to time to make sure they remain in compliance
Making it through the first two stages is no easy task, but ISO 27001 certification is just a step away. The ISOs will offer specific feedback on how to make your policies more compliant.
These documents include:
- Information security policy
- Statement of Applicability
- Risk Treatment Plan
If there are any missing controls prohibiting or limiting access to digital data, this initial audit will guide you through where to find them. Stage 2 formal audit is when auditors request evidence from your IT department to evaluate the design and effectiveness of their information security management system.
Similarities Between SOC 2 and ISO 27001
There are many common traits between the SOC 2 and ISO 27001 certifications. Both certifications:
- Evaluate current data security practices
- Design more effective data security systems
- Can build trust with vendors and regulatory agencies
- Are optional, not government-mandated
When it comes to data security, there are two primary compliance frameworks. The better option will depend on the business needs and industry.
When Should You Use SOC 2?
SOC 2 compliance may be preferable to ISO 27001 certification in these cases:
-Already have an Information Security Management System -Would like to test the effectiveness of the current online security framework -Would like a less stringent compliance audit
-We primarily operate in North America -We offer technology services (i.e., SaaS)
Although less rigorous than ISO 27001, SOC 2 audits can effectively evaluate current security practices and identify weak points.
When Should You Use ISO 27001?
ISO 27001 may be a better compliance framework in these cases:
- The creation of an Information Security Management System is required.
- Would like to implement global data security standards
- Desire a more thorough auditing process
- Have international clients
Going the extra mile to obtain ISO 27001 certification requires more effort, but “going the extra mile” can impress current and prospective customers.
The ISO standard has wide accepted across all industries. A company in the United States can expect the same standards from Germany.
Following the implementation of a firm policy, the company may conduct a SOC 2 audit to evaluate the system’s effectiveness.
Should you get SOC 2 or ISO 27001 certification?
Certifications like SOC 2 or ISO 27001 assure customers that their data is secure with third-party companies.
You’ll likely want to choose ISO 27001 if you’re looking for a more rigorous compliance process, as this framework is more widely accepted.
Conclusion
SOC 2 and ISO 27001 are two of the most commonly used standards in the world when it comes to information management. They both aim to protect customer data and ensure that the organization is taking reasonable measures to protect it. In this article, we will explore what these standards are, what they measure, and why you should care if your business is compliant with either one.
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