SECURITY STANDARDS

SOC 2 vs ISO 27001: Which Security Standard Does Your Business Need?

SOC 2 is the US enterprise attestation. ISO 27001 is the international certification standard. This page explains what each one is, how to decide which your business needs, and whether you need both.

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The short answer

The choice usually comes down to who your customers are and what they ask for. If you sell to US enterprises, they will most often ask for a SOC 2 report. If you sell in the UK, Europe or globally, ISO 27001 is the more widely recognised mark. Both prove you take information security seriously; they just do it in different ways and for different audiences.

What SOC 2 is

SOC 2 is an attestation report produced by an independent CPA firm against the American Institute of CPAs Trust Services Criteria: security, and where relevant availability, processing integrity, confidentiality and privacy. A Type I report assesses whether your controls are suitably designed at a point in time; a Type II report tests whether they operated effectively over a period, usually three to twelve months. SOC 2 is a report you share under NDA, not a certificate, and it is the standard US enterprise buyers most often demand.

What ISO 27001 is

ISO 27001 is the international standard for an information security management system, or ISMS. Rather than testing a fixed control set, it certifies that you run a managed, risk-based system for protecting information, with controls drawn from Annex A applied according to your own risk assessment. Certification is granted by an accredited body after audit and is recognised globally, which is why it tends to be the default expectation in the UK and Europe. Our guide on what ISO 27001 is covers it in full.

How to choose

Start with your customers, not the standard. Ask which one your target buyers actually request in procurement, because chasing the wrong certification is expensive effort that wins no deals. US-heavy enterprise sales point to SOC 2. UK, European and global markets point to ISO 27001. If your pipeline is mixed, the sequence matters: an ISO 27001 management system gives you a foundation that makes a later SOC 2 report far less work.

Do you need both?

Sometimes, but rarely from day one. The two overlap heavily on the underlying controls, so an organisation with a mature ISMS is already most of the way to a SOC 2 report. The pragmatic path for most firms is to build one well-run security programme, certify to whichever standard your market demands first, and add the second only when a specific customer requires it. Building that programme is where a virtual CISO earns their place, and our guide on building a security programme sets out the route.

Why Starkhorn

Starkhorn is led by Daniel J. Jacobs, who has spent over 20 years in technology and security, 15 of them in leadership roles, including Interim Group Technology Director at VetPartners, the BC Partners-backed veterinary group, and CIO and CISO at Jardine Motors Group. He is the author of The Strategy Bridge and holds PRINCE2, ITIL Foundation and full membership of the Institute of Interim Management.

Daniel has built the security programmes and evidence base that satisfy customer, auditor and board scrutiny, and can tell you which standard your market actually requires before you spend a year pursuing the wrong one.

Frequently asked questions

What is the difference between SOC 2 and ISO 27001?

SOC 2 is a US attestation report from an independent CPA against the Trust Services Criteria, shared under NDA. ISO 27001 is an international certification of a managed, risk-based information security management system, granted by an accredited body. SOC 2 reports on your controls; ISO 27001 certifies your system.

Which should a UK business choose?

Usually ISO 27001, because it is the mark most widely recognised in the UK, Europe and global markets. Choose SOC 2 if your customers are mainly US enterprises who request it in procurement. Let your buyers’ actual requirements decide, not the standard’s reputation.

Do I need both SOC 2 and ISO 27001?

Rarely from the start. The two overlap heavily, so a mature ISO 27001 management system puts you most of the way to a SOC 2 report. Build one programme, certify to whichever your market demands first, and add the second only when a specific customer requires it.

Is SOC 2 a certification?

No. SOC 2 is an attestation report produced by a CPA firm, which you share with customers under NDA. ISO 27001, by contrast, results in a certificate issued by an accredited certification body.

How long does each take to achieve?

ISO 27001 typically takes several months to build the management system and pass the certification audit. A SOC 2 Type II requires an observation period, usually three to twelve months, during which your controls must operate effectively before the report can be issued.

NEXT STEP

Not sure which standard your market actually needs?

The free ISO 27001 and SOC 2 Readiness check shows where you stand against both and which one fits your customers, before you commit to a year of work. When you want to talk it through, a conversation is the next step.

ISO 27001 and SOC 2 Readiness check Book a conversation