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.
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.
| Feature | ISO 27001 | SOC 2 |
|---|---|---|
| Purpose | Provides a structured security management system | Evaluates security controls for data protection |
| Scope | Organisation-wide risk management | Focuses on specific security controls |
| Certification | Requires official certification from an accredited body | Provides an attestation report, not a formal certification |
| Audit Process | Annual audits to maintain certification | One-time or ongoing audits (Type 1 and Type 2 reports) |
| Global vs US Focus | Recognised worldwide | Mainly used in North America |
| Industry Suitability | Suitable for all industries, including finance, healthcare, and government | Common for SaaS, cloud services, and technology companies |
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.
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.
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.
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.
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.”
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
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.
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.