In today’s competitive and security-conscious market, small businesses face growing pressure to prove they can protect sensitive data. Choosing the right cybersecurity certification can make the difference between winning customers or losing trust.
Two of the most recognized standards SOC 2 and ISO 27001 — often come up in conversations about security and compliance. While they share some common ground, they are distinct frameworks serving different purposes.
Understanding their similarities, differences, and value can help small businesses make a strategic choice that supports growth and security.
Overview: What Are SOC 2 and ISO 27001?
SOC 2 (System and Organization Controls 2) is an American auditing standard developed by the AICPA (American Institute of Certified Public Accountants). It evaluates how well a service organization manages customer data based on five Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy. SOC 2 reports can either be a Type I (point-in-time review) or a Type II (observation over time).
ISO 27001, a globally recognized standard developed by the International Organization for Standardization, sets requirements for an Information Security Management System (ISMS). Rather than focusing on a fixed set of criteria, it outlines a risk-based approach to managing and protecting sensitive information, emphasizing continuous improvement.
Both frameworks are strong endorsements of a company’s cybersecurity posture — but they approach assurance differently.
Similarities Between SOC 2 and ISO 27001
At a high level, SOC 2 and ISO 27001 share the same core mission: safeguarding data and demonstrating a company’s commitment to security. Both involve a rigorous evaluation by an independent third party and demand substantial internal documentation, formalized policies, and active risk management.
Additionally, achieving either SOC 2 or ISO 27001 certification sends a clear signal to customers, partners, and regulators that the company prioritizes information security. For small businesses competing in industries like SaaS, healthcare, or fintech, either certification can open doors to larger contracts and highly regulated markets.
Key Differences Between SOC 2 and ISO 27001
Despite their shared goal, the two frameworks differ in their structure, approach, and international reach:
| Aspect | SOC 2 | ISO 27001 |
| Origin | United States (AICPA) | International (ISO) |
| Focus | Trust Services Criteria (Security, Availability, etc.) | Building and managing an ISMS |
| Certification Type | Attestation (report from auditor) | Formal certification (pass/fail) |
| Report Audience | Often shared privately under NDA | Public recognition (optional) |
| Prescriptiveness | Flexible controls based on criteria | Specific management system requirements |
SOC 2 audits are tailored to each organization’s selected Trust Criteria and are more narrative in nature. ISO 27001, in contrast, demands compliance with a well-defined list of controls (Annex A) and ongoing commitment to continuous improvement through regular internal audits and management reviews.
Where SOC 2 and ISO 27001 Overlap
For businesses pursuing both standards, there’s good news: substantial overlap exists between them.
For instance, the Security criterion under SOC 2 aligns closely with ISO 27001’s emphasis on protecting the confidentiality, integrity, and availability of information. Controls around access management, encryption, incident response, and risk assessments are central to both.
As a result, many companies map their ISO 27001 controls to SOC 2 criteria to streamline their compliance efforts or vice versa. Starting with one can make achieving the other significantly easier down the road.
Value to Small Businesses
For small businesses, both certifications deliver measurable value — but choosing the right one depends on strategic goals:
- SOC 2 is ideal for companies operating primarily in North America or providing B2B services where clients regularly request a SOC 2 report as part of their vendor due diligence.
- ISO 27001 is better suited for companies with a global customer base or those needing a formalized, internationally recognized certification.
Beyond customer assurance, pursuing SOC 2 or ISO 27001 fosters operational discipline improves risk management, and can help companies avoid costly security incidents. For small businesses with limited resources, this proactive investment often proves far less expensive than the fallout from a data breach.
In highly competitive industries, having either certification — or both — can also serve as a major differentiator when bidding for new business.
Summing it Up
SOC 2 and ISO 27001 are not competing standards; they are complementary tools that help small businesses demonstrate they take security seriously. Understanding their differences and areas of overlap empowers companies to make informed decisions, align compliance with their business goals, and build a stronger, more resilient future.
References:
Bendoraitis, Nojus, and Nojus Bendoraitis. “ISO 27001 Vs. SOC 2: Key Differences in Compliance and Certification – CyberUpgrade.” CyberUpgrade –, 2 May 2025, https//cyberupgrade.net/blog/compliance-regulations/iso-27001-vs-soc-2-key-differences-in-compliance-and-certification.
Bonnie, Emily. “SOC 2 Vs ISO 27001: What’s the Difference and Which Standard Do You Need?” Secureframe, 18 Dec. 2024, secureframe.com/blog/soc-2-vs-iso-27001.
Rozen, Tom, and Joel Taylor. “SOC 2 Vs. ISO 27001: Comparative Analysis for Informed Decision Making.” GRSee, 5 Apr. 2025, grsee.com/resources/soc/soc-2-vs-iso-27001-comparative-analysis-for-informed-decision-making.
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