ISO 27001 vs SOC 2 which security framework is best for a TMS?

As can be deduced from the sheer literal meaning of these words, "Quality standards" are a set of guiding principles for maintaining a consistent product quality, and protecting customer data.

With the rapid pace of technological advancement comes a great responsibility: Data privacy and security. International industry standards provide the framework to meet this responsibility, and the reputation of organizations in this area is closely bound to their international certifications.

Security and compliance of localization processes within specialized companies are best achieved when the proper teams can grasp the scope of ISO 27001 and SOC 2 standards.

What Is ISO 27001

ISO 27001 is an international standard that sets up a security system for any type of company. It has strict requirements for managing and protecting data, and companies need certification to prove they follow it.

What is SOC 2

SOC 2 (Service Organization Control 2) is a security standard designed for SaaS companies. It checks how well they protect customer data, focusing on things like security and privacy. SOC 2 is flexible, allowing companies to choose what areas to focus on, making it a good fit for online services.

ISO 27001 vs SOC : Key Differences

Even though both ISO 27001 and SOC 2 are used to keep data safe, they have some important differences. Here’s a table that shows the main differences:

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Who Regulates ISO Standards

ISO represents 164 countries and one member for each country. ISO's Central Secretariat is responsible for organizing and developing International Standardization activities in Geneva.

Which Standards Organization Represents the US on the ISO?

ISO is the only representative in the United States to pay dues and is an active member in its governance and technical activities. ANSI gives the United States immediate access to ISO standards development.

Why is ISO 27001 Not Enough

ISO 27001 does not specify a risk analysis methodology. The standard requires only documentation of methods that use them for their use. The organization must select security measures that they need from a risk assessment and an acceptable risk appetite.

Certain kinds of companies find that ISO 27001 is an excellent certification for their trade. Nevertheless, in the localization world where we handle large data volumes, SOC 2 is deemed a more adequate and rigorous standard in most cases.

What Is the SOC 2 Equivalent in Europe

ISO 27001 is recognized globally as the highest security standard in Europe. Most businesses in the U.S. need security as SOC 2 conformity has become widely recognized.

What Does SOC 2 Stand For

SOC 2 was developed by the American Institute of CPAs (AICPA). This standard’s scope extends to data security, availability, processing integrity, confidentiality, and privacy. ISO 27001 is applied more widely across diverse industries. However, SOC 2 is more appropriate for specific companies with platforms like Bureau Works that manage daily large volumes of client data and information.

SOC 2 Type I vs Type II: What's the Difference?

SOC 2 reports is divided into two categories:

• SOC 2 Type I: Looks at how a company’s security measures are designed at a specific point in time. It’s a snapshot of what the company’s security system looks like on one day.
• SOC 2 Type II: Takes a deeper look at how the company’s security system works over time. It checks if the security measures are effective and consistently followed.

The Importance of SOC 2 Compliance

Bureau Works' SOC 2 certification and compliance showcase the localization company's commitment to high standards of data protection and operational transparency.

Bureau Works is proud to announce that we are SOC 2 certified and third-party audited!

By embracing SOC 2, Bureau Works positions itself as a leader in the localization industry, since it offers clients a secure and trustable platform that meets international and industry-specific standards.

What are the Criteria for SOC 2 Compliance?

SOC 2 uses the Trust Services Criteria (TSC) to evaluate how well a company manages security. These criteria include:

• Security: Protecting data from unauthorized access.
• Availability: Ensuring that systems are available when needed.
• Processing Integrity: Making sure that data is processed accurately.
• Confidentiality: Protecting sensitive information.
• Privacy: Managing personal data responsibly.

What is the SOC 2 Compliance Checklist?

The SOC 2 Compliance checklist explains all the steps required for compliance with SOC 2. Some steps in an application for SOC 2 are universal, but some steps depend largely upon the scope and types of reports and services your company offers.

We need to protect customer data. This is no longer the realm of defense organizations. All companies, processes, and systems contain sensitive data that are helpless targets of unwanted digital crimes. Therefore, confidentiality, applied controls, security principles, and audit results are invaluable.

We are on a firm path towards continuous improvement. This implies enhancing our operating effectiveness while making sure that our customer needs are met.  

What is a SOC 2 Audit?

While certain security standards such as ISO 27001 are rigid requirements this is not the case with SOC 2. The control and certification report is unique for each business unit. Every business develops its control measures which will meet their Trust Services Standards if necessary.

The consultant auditor checks if the company's controls meet the SOC 2 requirements of the audit. Following a comprehensive audit, a report is produced about how well the company has met its standards. All companies who complete SOC 2 audits receive reports regardless of whether they have passed them. Here's the definition of auditing.

Who Needs a SOC 2 Report?

When you work at a service organization storing customer records and processing information, your data needs to comply with SOC 2. The statutory requirements of the SOC 2 can assist in establishing effective internal security measures for the organization.

The following are some key security processes to enable your organization to scale securely. It builds confidence in the customer. Service organizations typically use SOC 2 reports because their clients demand them. The customer must feel secure when you keep sensitive information. SOC 2 reports provide the best assurance in this respect. The SOC 2 report may help unlock sales or drive up market share.

How Does a SOC 2 Type II Report Differ from a SOC 2 Type I Report?

A type I report on Service Organizations explains the design of its control system at a particular date. SOC 2 report type II covers the planning and operation efficiency of control activities within a service group. A SOC2 Type 1 assessment may assess the controls for the service organization as currently. A SOC2 Type II analysis is conducted to evaluate controls within a service organization. Google Cloud does not issue reports of type X.

How Long Does SOC 2 Certification Take

Audit windows for SOC 2 Type 2 vary depending upon the duration selected, depending on the length of time. Your auditor will need six to eight more weeks to complete a final SOC 2 report.

Can you Self-Certify SOC 2?

Despite the companies are unable to perform a SOC 2-related audit internally, it could eventually be prepared. It requires internal review, the appropriate controls, and compliance with the Trust Service standards.

Conclusion

In the end, there’s no "best" solution when it comes to choosing between ISO 27001 and SOC 2. Each standard has its own strengths depending on what your business needs.

• ISO 27001 is globally recognized and offers a broad framework for managing information security.
• SOC 2 is more specific to data-handling companies, especially those in the U.S., and focuses on ensuring trust with clients.

To decide which standard is best, you’ll need to think about your company’s goals, what kind of data you handle, and where your customers are located. By understanding these differences, you can choose the right framework to keep your business and your customers safe.