ISO 27001 vs SOC 2: Which Certification Does Your Company Need?

Why Security Certifications Matter for Growing Companies

As your company grows, customers, investors, and partners will increasingly ask about your security posture. “We take security seriously” is no longer a sufficient answer. Prospects want proof — and in the B2B world, that proof typically comes in the form of a recognized security certification.

The two most commonly requested certifications are ISO 27001 and SOC 2. Both demonstrate that your organization has implemented robust information security controls, but they differ in scope, structure, audience, and certification process. Choosing the right one — or understanding when you need both — can save significant time and money.

ISO 27001: The International Standard

What Is It?

ISO/IEC 27001 is an international standard for Information Security Management Systems (ISMS), published by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). It specifies requirements for establishing, implementing, maintaining, and continually improving an ISMS.

How It Works

ISO 27001 certification is achieved through a formal audit conducted by an accredited certification body. The audit verifies that your ISMS meets all requirements of the standard, including:

• Context of the organization — Understanding internal and external factors, stakeholder requirements, and ISMS scope
• Leadership — Management commitment, information security policy, and organizational roles
• Planning — Risk assessment and risk treatment methodology
• Support — Resources, competence, awareness, communication, and documented information
• Operation — Risk assessment execution, risk treatment implementation, and operational planning
• Performance evaluation — Monitoring, measurement, internal audit, and management review
• Improvement — Nonconformity handling, corrective action, and continual improvement

The standard also includes Annex A, a set of 93 security controls (in the 2022 revision) organized into four themes: organizational, people, physical, and technological controls.

Key Characteristics

• Global recognition — ISO 27001 is recognized worldwide and is the most requested security certification in Europe, the Middle East, and Asia
• Formal certification — An accredited third-party certification body conducts the audit and issues the certificate
• Three-year cycle — Initial certification audit, followed by annual surveillance audits, and a recertification audit every three years
• Risk-based — The core methodology is built around risk assessment and treatment
• Management system focus — Evaluates your governance, processes, and continuous improvement, not just technical controls

SOC 2: The Trust Services Standard

What Is It?

SOC 2 (System and Organization Controls 2) is a reporting framework developed by the American Institute of Certified Public Accountants (AICPA). It evaluates an organization’s controls relevant to the Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy.

How It Works

A SOC 2 examination is performed by a licensed CPA firm. The result is a SOC 2 report (not a “certification” in the strict sense, but functionally used the same way). There are two types:

• SOC 2 Type I — Evaluates the design of controls at a specific point in time
• SOC 2 Type II — Evaluates the design and operating effectiveness of controls over a period (typically 6-12 months)

Type II reports are far more valuable and are what most customers request.

Trust Services Criteria

SOC 2 evaluates controls across up to five categories. Security (also called “Common Criteria”) is mandatory; the others are optional:

1. Security — Protection against unauthorized access (mandatory)
2. Availability — System uptime and performance commitments
3. Processing Integrity — Accurate and complete data processing
4. Confidentiality — Protection of confidential information
5. Privacy — Personal information handling (similar to privacy regulations)

Most organizations start with Security and Availability, then add additional criteria as needed.

Key Characteristics

• Primarily North American — SOC 2 is most commonly requested by US and Canadian customers
• CPA-issued report — The examination is conducted by a licensed CPA firm, not a certification body
• Flexible scope — You choose which Trust Services Criteria to include
• Detailed report — The SOC 2 report includes a detailed description of your system, controls, and test results
• Annual renewal — SOC 2 Type II reports typically cover a 12-month period and are renewed annually

Head-to-Head Comparison

Which Should You Choose?

Choose ISO 27001 If:

• Your customers are international. ISO 27001 is the de facto standard in Europe, the Middle East, Africa, and Asia-Pacific. If you sell to enterprises in Saudi Arabia, the UAE, or the EU, ISO 27001 will open more doors than SOC 2.
• You need a formal management system. ISO 27001 forces you to build a mature information security management system with continuous improvement cycles. This is valuable beyond just the certificate.
• You plan to pursue additional ISO certifications. ISO 27001 integrates well with ISO 9001 (quality), ISO 22301 (business continuity), and ISO 27701 (privacy), allowing you to build an integrated management system.
• Your industry expects it. Government contractors, defense suppliers, financial institutions, and healthcare organizations in many regions require ISO 27001.

Choose SOC 2 If:

• Your customers are primarily in the US. SOC 2 is the most commonly requested security assurance in American enterprise sales. If your sales pipeline is US-focused, SOC 2 will accelerate deal closure.
• You are a SaaS company. SOC 2’s Trust Services Criteria are well-suited to cloud service providers and SaaS companies, particularly the security and availability criteria.
• You want flexibility. SOC 2 allows you to choose which criteria to include and to define a custom system description, giving you more control over the scope.
• You need a detailed report for due diligence. SOC 2 reports include detailed descriptions of your controls and test results, which are valuable for customer security reviews.

Consider Both If:

• You sell globally. Companies with both US and international customers increasingly need both certifications. The good news is that 60-70% of the control work overlaps, so pursuing both is not twice the effort.
• You are a growing SaaS company expanding internationally. Start with whichever your current customers request most, then add the other within 12-18 months.

Practical Roadmap for Growing Companies

Phase 1: Build Your Foundation (Months 1-3)

Regardless of which certification you pursue, you need the same foundational work:

• Conduct a risk assessment
• Implement core security policies (access control, encryption, incident response, acceptable use, change management)
• Deploy technical controls (MFA, encryption, logging, endpoint protection, backup)
• Establish a vendor management programme
• Document your processes and procedures

Phase 2: Pursue Your Primary Certification (Months 3-9)

Choose the certification your customers request most. Engage an auditor early to understand expectations, conduct a readiness assessment, remediate any gaps, and proceed through the formal audit.

Phase 3: Add the Second Certification (Months 9-18)

Leverage the work from your first certification. Map existing controls to the second framework’s requirements, fill any gaps, and engage the appropriate auditor.

The Overlap Advantage

Organizations that have implemented ISO 27001 will find that approximately 70% of SOC 2 Common Criteria requirements are already met. Similarly, organizations with SOC 2 will find that most ISO 27001 Annex A controls are addressed.

The key areas where additional work is needed:

• ISO 27001 to SOC 2: SOC 2 may require more detailed evidence of control effectiveness over the observation period, particularly for availability and processing integrity criteria
• SOC 2 to ISO 27001: ISO 27001 requires a formal ISMS with management review, internal audit, and continual improvement processes that SOC 2 does not explicitly mandate

How SeedGovernance Helps

SeedGovernance provides pre-built templates for both ISO 27001 and SOC 2, with cross-mapping between the frameworks so you can see exactly which controls satisfy both standards. Our platform includes risk assessment tools, policy libraries, vendor management, and audit preparation workflows that serve both certification paths.

Take the free assessment to evaluate your readiness for ISO 27001, SOC 2, or both.