Organizations worldwide are grappling with the modern reality of cybersecurity vulnerabilities. A single data breach can deal a heavy blow to a company’s bottom line while leaving its reputation in shambles.
“Cybersecurity is becoming increasingly important, as companies, governments, and individuals are more and more reliant on IT systems, which are vulnerable to malicious actions. This digital transformation has made security a priority for organizations of every size,” says Statista, forecasting that the annual cost of global cybercrime will reach a new peak of $15.63 trillion by 2029. The same report indicates that companies worldwide are investing in enhanced cybersecurity resilience, proving that data safeguards are a growing priority internationally.
In response to the increasing demand for cybersecurity and data privacy, various international organizations have published globally recognized information security standards to help organizations proactively protect internal and consumer data. Two such frameworks are known as ISO 27001 and SOC 2. Many companies operating in data-heavy industries, offering B2B services, or expanding internationally seek ISO 27001 and SOC 2 certifications to demonstrate compliance.
What should you know about these data security standards? What is the difference between ISO 27001 and SOC 2? How can working with ISO 27001 and SOC 2-certified organizations safeguard your data? Let’s dive in.
Both ISO 27001 and SOC 2 share overlapping security controls and overarching objectives, and require rigorous external audits to qualify for certification or receive a passing report. However, these frameworks differ in purpose and application. We’ll start by defining each data security standard and addressing its unique scope, principles, relevance, and certification process.
Defining ISO 27001 Certification
The ISO 27001 framework was developed by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) with the goal of standardizing data protection.
“ISO/IEC 27001 is the world’s best-known standard for information security management systems (ISMS). It defines requirements an ISMS must meet,” explains ISO. “The ISO/IEC 27001 standard provides companies of any size and from all sectors of activity with guidance for establishing, implementing, maintaining and continually improving an information security management system.”
ISO 27001 helps organizations achieve next-level data security compliance and is more stringent in comparison to SOC 2.
Scope
ISO 27001 standards impact every aspect of data handling within an organization, from paper to electronic. This framework reaches beyond internal information security, governing even third-party interactions.
Principles
The three main principles of ISO 27001 are referred to as the ‘C-I-A triad’, which stands for:
- Confidentiality – Organizations must establish policies and procedures governing who has access to what data.
- Integrity – Organizations must implement strategies to prevent unauthorized data modification or deletion, preserve the authenticity of data, and furnish trustworthy audit trails.
- Availability – Organizations must ensure that data remains readily accessible when needed.
Relevance
This cybersecurity framework is recognized internationally and certification can be beneficial for organizations representing nearly all industries. “The ISO 27001 certification is applicable to businesses of all sizes and ensures that organizations are identifying and managing risks effectively, consistently and measurably,” says Forbes.
Certification Process
Obtaining ISO 27001 certification is a rigorous yet worthwhile endeavor. The process can take several months and involves establishing information security management systems in line with ISO 27001 standards, undergoing several cybersecurity audits, implementing risk mitigation controls, developing internal security policies, and overall creating a systematic strategy for data handling.
Defining SOC 2 Certification
The SOC 2 framework stands for System and Organization Controls 2 and was developed by the American Institute of Certified Public Accountants (AICPA). The goal of SOC 2 is to provide standardized guidance for assessing the effectiveness of a company’s data security measures regarding cloud-stored customer data.
Scope
Rather than encompassing organization-wide data like ISO 27001, SOC 2 standards are centered around protecting customer data.
Principles
The five principles of SOC 2 are referred to as the ‘Trust Services Criteria (TSC)’, which include:
- Security – Data must be protected from access by unauthorized parties.
- Availability – Data must be readily accessible when needed.
- Processing integrity – Data systems must function in a timely and accurate manner.
- Confidentiality – Sensitive data must be protected from being compromised.
- Privacy – Customer data must be safeguarded.
Relevance
While ISO 27001 has global applicability, the SOC 2 framework is more relevant to the US market and is especially useful for organizations providing cloud-based services or dealing with sensitive data, such as companies operating in the tech and finance industries.
Certification Process
Unlike ISO 27001, a report, rather than a certification is issued to applicants. To receive a formal SOC 2 report assessing compliance, a company must be audited by an external certified public accountant (CPA). Before the audit, an organization must ensure compliance with any mandatory data security controls outlined in the framework. The audit process may take several months but is typically shorter than the ISO 27001 certification process.
Why are ISO 27001 and SOC 2 Certifications Important for Data Security?
Whether you are an organization looking to forge B2B partnerships or in an industry that handles customer data, ISO 27001 and SOC 2 should be on your radar. Let’s highlight the purpose and benefits of these certifications and how they safeguard your data.
Purpose of ISO 27001 and SOC 2 Certification
Abiding by the ISO 27001 framework helps companies reach these key objectives:
- Enhanced regulatory compliance – Adhering to ISO 27001 and SOC 2 standards can help organizations comply with other regulatory frameworks, such as GDPR and HIPAA.
- Comprehensive risk mitigation – The rigorous certification process and audits demand that applicants demonstrate a relentless approach to cybersecurity, effectively identifying and addressing vulnerabilities, and reducing the risk of costly breaches.
- Ongoing company-wide cybersecurity awareness – Continual ISO 27001 and SOC 2 compliance compels organizations to regularly assess cybersecurity measures, fostering a company culture of data security awareness.
Benefits of ISO 27001 and SOC 2 Certification
- Gain a competitive advantage – ISO 27001 and SOC 2 compliance prove that an organization is willing to go the extra mile to invest in protecting its data, giving it an edge over industry competitors.
- Build consumer trust – These certifications boost an organization’s reputation and demonstrate to business partners and customers its tangible commitment to data security.
- Reduce cybersecurity risks – Ongoing ISO 27001 and SOC 2 compliance gives organizations added incentive to continually reassess data handling and tighten up vulnerabilities that could prove costly if left unchecked.
Are you ready to onboard a business partner that has already jumped through all the necessary hoops to receive ISO 27001 and SOC 2 certification?
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