SOC2 vs ISO 27001: What’s the Difference?

Are you looking to understand the differences between SOC 2 and ISO 27001? Both are widely recognized and respected standards for information security, but they have different focuses and are intended for different audiences.

SOC 2 (Service Organization Control 2) is an auditing standard that assesses and reports on the controls at a service organization that are relevant to security, availability, processing integrity, confidentiality, and privacy of a system. SOC 2 is intended for service providers, such as cloud providers, who store and process customer data. The report produced from a SOC 2 assessment is intended for the service provider's customers and potential customers, and it provides assurance on the controls in place to protect the customer's data.

ISO 27001, on the other hand, is a standard that outlines the requirements for an information security management system (ISMS). It is intended for any organization, regardless of size or industry, that wants to establish, implement, maintain, and continually improve an information security management system. The standard provides a systematic approach to managing sensitive company information so that it remains secure. It includes guidelines and general principles for initiating, implementing, maintaining, and improving information security management in an organization.

One key difference between the two is the outcomes of an effective compliance program for the respective frameworks. Upon successfully passing Stage 1 and 2 audits with an ISO registrar, your organization would be issued the ISO 27001 certification, whereas SOC2 audits result in an attestation report that can be made available for your customers’ review. Additionally, ISO 27001 certification is more recognized internationally, where SOC2 Type II reporting is more widely accepted in North America, but can also be accepted by international companies depending on their individual third party risk management programs.

In summary, SOC 2 is focused on the controls that service providers have in place to protect customer data, while ISO 27001 is focused on an organization's overall information security management system. SOC 2 is intended for service providers and their customers, while ISO 27001 is intended for any organization that wants to establish, implement, maintain, and continually improve an information security management system.

It is possible for an organization to be compliant with both SOC 2 and ISO 27001, but it requires a different set of controls and processes to meet the requirements of each standard. An organization that wants to demonstrate compliance with both standards would need to conduct both a SOC 2 assessment and an ISO 27001 certification assessment.