Understanding the Difference: ISO/IEC 27001 vs. SOC 2 Certification

As data breaches and cyber threats continue to increase, it has become essential for organizations of all sizes to demonstrate a consistent dedication to information security. Two widely known frameworks, ISO/IEC 27001 and SOC 2, support organizations to validate their security practices, although they vary considerably in their objectives, coverage, and methodology.

Understanding both frameworks is important for making well-informed decisions that support an organization’s compliance objectives, customer demands, and operational structure. Although ISO/IEC 27001 and SOC 2 both aim to protect sensitive data, they differ in their certification processes, regional focus, level of adaptability, and suitability across various sectors.

What is ISO/IEC 27001?

ISO/IEC 27001 is an internationally recognized standard developed by ISO/IEC, with a main focus on building a formal Information Security Management System. It involves a structured approach with mandatory risk evaluations and control implementation, leading in a third-party certification valid for three years with annual audits. 

What is SOC 2?

SOC 2, created by the American Institute of Certified Public Accountants - AICPA in the U.S., focuses on internal controls for data security and privacy. It provides more flexibility, with only security being mandatory, and allows organizations to choose relevant criteria based on their business requirements. SOC 2 results in an attestation report by a CPA and includes two types: Type I and Type II. 

Key Differences Between ISO/IEC 27001 and SOC 2

ISO/IEC 27001 is generally preferred by global businesses, while SOC 2 is more common among U.S.-based service providers. The cost for each depends on the project’s scope and complexity, with ISO/IEC 27001 usually ranging from medium to high, and SOC 2 varying based on report type and extend of the audit.

For a detailed comparison of the key differences between ISO/IEC 27001 and SOC 2, download the table below.

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Determining the Right Choice

Deciding between ISO/IEC 27001 and SOC 2 involves assessing different key considerations:

• Target Market and Client Base: SOC 2 is often more suited for businesses serving U.S.-based clients, while ISO/IEC 27001 holds wider recognition across international markets.
• Industry Requirements: Specific sectors may prefer one framework over the other based on customer demands.
• Certification vs. Attestation: ISO/IEC 27001 leads to a globally recognized certification, while SOC 2 provides an attestation report issued by a licensed CPA.
• Approach and Flexibility: ISO/IEC 27001 adopts a formal and comprehensive ISMS methodology, while SOC 2 provides more flexibility, allowing organizations to align controls with their specific business environment.

Conclusion

Both ISO/IEC 27001 and SOC 2 represent effective tools for showing an organization’s dedication to information security and data protection. While they differ in terms of structure and global recognition, each framework offers an effective method to promote a strong relationship and trust with clients and business partners.

Organizations focused in long-term risk management, strong security governance, and global recognition are likely to benefit more from ISO/IEC 27001. On the other hand, businesses serving primarily to North American markets or delivering SaaS-based services may find SOC 2 more suitable for their needs.

Often, businesses seek to pursue both certifications to meet different stakeholder demands and strengthen their overall security infrastructure.

How Does PECB Support Your ISO/IEC 27001 and SOC 2 Journey

PECB supports professionals in building a strong foundation for information security and data protection by providing internationally recognized training courses and certifications for both ISO/IEC 27001 and SOC 2 frameworks.

Schemes of ISO/IEC 27001 and SOC 2 include:

• ISO/IEC 27001 Foundation
• ISO/IEC 27001 Lead Implementer
• ISO/IEC 27001 Lead Auditor
• ISO/IEC 27001 Transition
• Lead SOC 2 Analyst

About the author

Vesa Hyseni is a Senior Content and Campaigns Specialist at PECB. She is responsible for creating up-to-date content, conducting market research, and providing insights about ISO standards. For any questions, feel free to reach out to her at support@pecb.com.