Organizations that handle sensitive data or provide digital services must demonstrate that they take security seriously. Two of the most widely recognized frameworks for doing this are SOC 2 and ISO 27001. While both offer pathways to build trust and achieve compliance, they differ in structure, purpose, and audience.
So how do you decide which option is right for your business—or if you need both?
What Is SOC 2?
SOC 2 (System and Organization Controls 2) is an attestation framework based in the U.S. developed by the AICPA. It evaluates how effectively your organization manages data according to the five Trust Services Criteria:
- Security (required)
- Availability
- Processing Integrity
- Confidentiality
- Privacy
SOC 2 reports are conducted by independent auditors and can take one of two forms:
- Type I: Assesses your control design at a specific point in time
- Type II: Evaluates the effectiveness of controls over a specified period
SOC 2 is particularly relevant for SaaS providers, cloud vendors, and U.S.-based tech companies serving enterprise clients.
Ready to get started? Take the SOC 2 scoping questionnaire.
What is ISO 27001?
What is ISO 27001?
ISO/IEC 27001 is a globally recognized standard for implementing an Information Security Management System (ISMS). Developed by the International Organization for Standardization (ISO), it offers a risk-based framework for securing information assets.
Key elements of ISO 27001 are:
- Establishing and maintaining an Information Security Management System (ISMS)
- Conducting frequent risk assessments
- Implementing controls from Annex A.
- Following the Plan-Do-Check-Act (PDCA) cycle
- Completing annual surveillance audits following certification
ISO 27001 is well-suited for organizations with international clients or those looking for a formal, auditable security governance model.
Ready to get started? Take the ISO 27001 scoping questionnaire.
Key Differences Between SOC 2 and ISO 27001
How to Choose: SOC 2 or ISO 27001?
Choosing the appropriate framework depends on your clients, objectives, and internal readiness. Consider the following:
-
Target Market
- Serving U.S.-based enterprise clients or SaaS buyers? → SOC 2
- Are you working internationally, particularly in Europe or APAC? → ISO 27001
-
Compliance Objectives
- Need to demonstrate operational effectiveness over time? → SOC 2 Type II
- Looking for a structured, organization-wide security framework? → ISO 27001
-
Customer Expectations
- Ask your clients directly whether they request SOC 2 reports or ISO 27001 certificates?
-
Internal Maturity
- Newer, fast-moving startups may prefer the flexibility of SOC 2.
- Established organizations may be better suited for ISO 27001’s structure.
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Long-Term Strategy
- SOC 2 is frequently the foundation for expanding companies.
- ISO 27001 promotes wider governance and international trust
Why Not Both?
Many companies ultimately pursue both frameworks. Beginning with ISO 27001 can strengthen your internal security program, while SOC 2 offers external assurance to customers.
Fortunately, a significant overlap exists between the two—especially when aligning with NIST, CIS, or other shared control baselines. Implementing one can streamline your readiness for the other.
Final Thoughts: Choose the Framework That Moves You Forward
SOC 2 and ISO 27001 each provide robust methods to demonstrate your commitment to cybersecurity, build trust with customers, and meet stakeholder demands. Your decision should align with your business model, client expectations, and security maturity.
If you’re unsure where to start, Tego can help you assess your options, plan your roadmap, and get ready for successful audits—whether you pursue SOC 2, ISO 27001 or both.