Security compliance is key, but which certification is best for your business goals?
For fast growing companies, security compliance is key, but choosing which compliance to pursue can be a difficult choice to make, especially considering that the framework for both ISO 27001 and SOC 2 is so similar.
Both demonstrate that a business has implemented robust security measures and takes information security seriously, however there are some key differences.
This blog will discuss both compliance frameworks and the elements you should take into consideration when choosing which to complete.
What is ISO 27001?
ISO 27001 is one of the leading international standards that provides a framework for establishing, implementing, maintaining, and continually improving an Information Security Management System (ISMS).
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ISO 27001 certification provides customers with third-party reassurance that your organization has built an ISMS and is committed to handling and protecting sensitive data.
What are the requirements?
There are 14 key components that form the foundation of the ISO 27001 certification. Organizations must adhere to these to achieve compliance which are as follows:
- Information security policy
- Organization of information security
- Compliance with legal requirements and industry standards
- Risk assessment and treatment
- Asset management
- Access control
- Cryptography
- Physical security
- Operations security
- Communications security
- System acquisition, development, and maintenance
- Supplier relationships
- Information quality management
- Risk monitoring and review
Benefits of ISO 27001:
- Internationally recognized standard
- A comprehensive framework for managing information security
- Requires a systematic approach to risk assessment
- Certification is valid for 3 years with annual surveillance audits
Cons of ISO 27001:
- It is a lengthy, resource intensive process which takes up to 24 months
- There is less flexibility due to the prescriptive nature of the controls
- It can be expensive, creating barriers for smaller companies
What is SOC 2?
SOC 2 is a reporting framework developed by the American Institute of CPAs (AICPA). It is designed to measure how a business’ system achieves the AICPA Trust Service Criteria which covers: security, availability, processing integrity, confidentiality, and privacy.
Unlike ISO 27001 which sets out a more rigid framework, each company has the freedom to design its own controls in order to comply with the criteria.
What are the requirements of SOC 2?
As mentioned above, there are five areas which are examined to achieve SOC 2 compliance which are as follows:
- Security: This includes access controls, network security, and incident responses
- Availability: This refers to system monitoring, disaster recovery, and Service Level Agreements (SLAs)
- Processing Integrity: This covers quality assurance, system operations, and data validation.
- Confidentiality: Encryption, access restrictions and data masking will be examined in this section.
- Privacy: Policies, consent management and data subject rights fall under privacy criteria.
Although Security is the only mandatory area, in order to have a well-rounded assessment, companies should commit to implementing appropriate measures to demonstrate compliance.
Benefits of SOC 2:
- More flexibility than ISO 27001 as organizations can select relevant Trust Services Criteria
- Attestation report provides detailed description of controls
- Widely accepted in the US, particularly in the technology sector
- Quicker process than ISO 27001 (6-12 months)
Cons of SOC 2:
- Mainly focused on US market, not widely recognized internationally
- Renewed on a yearly basis
- Not an official certification, but an attestation of controls
Which certification is right for you?
There is no “one size fits all” answer but there are several factors to consider when choosing the right compliance standard for you, including the organization’s needs, resources, and goals.
Some key considerations are:
- Geography and Industry Relevance: While ISO 27001 is an internationally recognized standard across multiple industries, SOC 2 is more commonly used across North America within the tech and cloud service provider industries.
- Certification vs Attestation: ISO 27001 is a certification from an accredited body which demonstrates compliance with a global standard, whereas SOC 2 is an attestation report from a CPA firm.
- Client and Market Expectations: Client’s may specifically request one over the other due to their vendor due diligence process, particularly in the US where SOC 2 is more prevalent.
- Cost and Resources: Initial implementation costs for ISO 27001 can be costly and resource
intensive due to the lengthy process. The cost of SOC 2 can vary depending on the type of report (Type I vs Type II) and the length of the audit period, as well as ongoing audits and evidence collection.
- Flexibility and Customization: ISO 27001 is a more rigid framework in terms of documentation and processes required, making it less flexible in tailoring to specific client requirements. SOC 2 allows companies to tailor controls for service criteria applicable to the organization.
Final Thoughts
Deciding between ISO 27001 or SOC 2 should be guided by your specific needs, client demands, industry standards and regulatory requirements. Ultimately, both are strong displays of a business’ commitment to ensuring information security. By understanding the nuances and differences between these certifications, organizations can make an informed decision that best suits their unique circumstances and security objectives.
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