Where to Start: ISO27001 or SOC2 Type 2

Starting a new venture or looking to enhance your organisation’s security posture? You might be thinking which makes sense for my organisation – ISO27001 or SOC2 Type 2?

Here’s a guide to help you decide where to start.

ISO27001 - An International Standard for Information Security

ISO27001 is an international standard that outlines how to manage information security.

This is a globally recognised standard, which is maintained by the International Organization for Standardization (ISO).

It specifies requirements for establishing, implementing, maintaining, and continually improving an information security management system (ISMS). The goal is to help organisations secure their information assets.

Organisations meeting the standard’s requirements can choose to be certified by an accredited certification body after completing an audit.

SOC2 Type 2 - Assurance for Service Providers

SOC2 Type 2, developed by the American Institute of Certified Public Accountants (AICPA), is an audit designed for technology and cloud computing companies that store customer data.

This audit is more rigorous than its predecessor, SOC2 Type 1, as it requires companies to establish and follow strict information security policies and procedures over time.

SOC2 Type 2 compliance aims to assure clients that their sensitive data is well-managed and protected.

Key Differences Between ISO27001 and SOC2 Type 2

Aspect	ISO27001	SOC2 Type 2
Developer and Origin	Developed by ISO and IEC. Internationally recognised.	Developed by AICPA. Primarily used in North America.
Primary Focus	Establishing and maintaining an ISMS.	Operational effectiveness of controls over a period.
Scope and Applicability	Applicable to any organisation, globally used.	Primarily for service organisations in the tech industry.
Certification and Audit	Audit by accredited certification body, recertification every three years.	Audit by CPA or CPA firm, assessing control effectiveness over six months to a year.
Compliance Reports	Provides an ISMS certificate.	Provides a detailed SOC2 report.
Recognition	Globally recognised and respected.	Primarily recognised in North America, gaining global recognition.

Key Similarities Between ISO27001 and SOC2 Type 2

Aspect	Similarity
Focus on Information Security	Strong emphasis on information security and protecting sensitive data.
Risk Management	Requires organisations to conduct risk assessments and implement controls.
Continuous Improvement	Stresses the importance of continuous improvement in information security practices.
Management Commitment	Requires commitment and involvement from senior management.
Policy and Procedure Documentation	Thorough documentation of information security policies, procedures, and practices.
Regular Audits	Requires regular audits to verify effectiveness of controls.

Which Makes Sense for My Organisation?

Deciding where to start depends on your organisation’s specific needs.

If your goal is to implement a robust information security management system recognised worldwide, ISO27001 is an excellent starting point.

Conversely, if your organisation is a service provider storing customer data, pursuing SOC2 Type 2 compliance might be the priority.

Remember, compliance is not a one-time task but an ongoing process. It is crucial to continually assess risks, update procedures, and train staff to maintain a resilient information security posture.

This journey towards compliance might seem daunting, but taking the first step is crucial for safeguarding your organisation’s future.