ISO 27001 vs SOC 2: Which Security Framework is Right for You?

In today’s digital world, organisations that handle sensitive data must prove they have strong security measures in place. Two widely recognised frameworks, ISO 27001 and SOC 2, help businesses build trust by demonstrating their commitment to information security.

However, these frameworks serve different purposes and are suited to different types of businesses. If you’re unsure whether ISO 27001 or SOC 2 is right for your organisation, this guide will help you understand the key differences, benefits, and challenges of each.

What Are ISO 27001 and SOC 2?

Both ISO 27001 and SOC 2 focus on information security, but they have different goals and approaches:

• ISO 27001 is an international standard for managing information security risks through an Information Security Management System (ISMS). It provides a structured framework for organisations to identify, assess, and mitigate security risks.

• SOC 2 is a security framework developed in the United States that assesses an organisation’s security controls based on five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy.

While ISO 27001 helps implement security policies and processes, SOC 2 is about demonstrating security controls to customers.

Key Differences Between ISO 27001 and SOC 2

Which Compliance Framework Is Right for You?

1. Industry and Business Type

ISO 27001 is ideal for global businesses that need a structured approach to risk management and compliance. It is often required in finance, healthcare, and regulated industries.

SOC 2 is commonly used by cloud service providers, SaaS companies, and technology firms to show their customers they have strong security controls.

2. Geographic and Market Requirements

ISO 27001 is recognised internationally and is a requirement for businesses dealing with European, Asian, and global markets.

SOC 2 is widely used in the United States, particularly by organisations providing services to US-based clients.

3. Security and Compliance Goals

If your goal is to develop a formal security management system that improves security over time, ISO 27001 is the best choice.

If you need to prove to customers that you have security controls in place, SOC 2 may be more suitable.

4. Certification vs Attestation

ISO 27001 provides an official certification that can serve as a competitive advantage in highly regulated industries.

SOC 2 does not grant certification, but instead provides a third-party audit report that demonstrates security controls.

Can One Framework Be Used in Place of the Other?

For many startups—especially in early stages—it’s common to choose one framework depending on their target market. We often recommend:

• SOC 2 for startups working primarily with US customers

• ISO 27001 for those focusing on Europe or other international markets

In many cases, if a customer requests one standard, startups can respond with the other—provided the scope and controls are relevant and mature. For example, a company may provide a SOC 2 report to a European partner asking for ISO 27001, and vice versa. This flexible approach can help delay dual certification until it’s commercially necessary.

This also makes a great topic for a short-form video or explainer: “SOC 2 or ISO 27001? Why early-stage startups often use one to satisfy both.”

Challenges and Benefits of Each Framework

ISO 27001: Pros and Cons

• Provides a structured security framework that improves risk management

• Recognised globally, making it valuable for international business

• Requires significant time and resources to implement

• Audits are more rigorous and require ongoing maintenance

SOC 2: Pros and Cons

• Faster to implement, with a focus on relevant security controls

• Highly valued by US-based businesses and customers

• Not as widely recognised outside North America

• Does not provide an official certification—only an attestation report

Can Your Business Use Both ISO 27001 and SOC 2?

Yes. Many businesses choose to implement both frameworks to gain the benefits of each. This is especially useful for SaaS companies expanding internationally, where ISO 27001 supports entry into global markets, while SOC 2 meets the expectations of US-based clients. Businesses handling sensitive customer data also benefit from both—ISO 27001 strengthens their internal systems through structured risk management, while SOC 2 provides a clear demonstration of security controls to customers. Similarly, organisations that work with both large enterprises and startups often need to meet varying compliance expectations, as some clients may require ISO 27001 certification while others accept a SOC 2 report.

Which One Should You Choose?

ISO 27001 is the right choice if your business needs a globally recognised security certification, a formalised risk management system, or if you operate in a highly regulated industry. SOC 2 is better suited if your primary objective is to demonstrate robust security controls to customers in the United States. However, if your organisation serves multiple markets or is planning to scale internationally, it’s worth considering both frameworks to ensure broad security compliance coverage. For companies unsure where to begin, consulting with a cybersecurity expert can simplify the process, reduce time to implementation, and help ensure long-term success.

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