With data protection and risk management now core business priorities, navigating the landscape of compliance standards can be challenging. From SOC 2 and ISO 27001 to GDPR and HIPAA, each framework has unique requirements and benefits. Understanding how SOC 2 compares to other widely recognised standards can help your organisation choose the right approach to meet client expectations and industry demands. This article explores the key differences and similarities between SOC 2 and other major compliance frameworks.
Understanding SOC 2 in Context
SOC 2 (System and Organization Controls 2) is specifically designed for service organisations handling customer data. It assesses controls based on the five Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy. Unlike prescriptive standards, SOC 2 is principle-based and allows flexibility in how organisations implement controls to meet the criteria.
SOC 2 vs. ISO 27001
Both SOC 2 and ISO 27001 focus on information security, but their approaches differ. ISO 27001 is a global standard for establishing, implementing, and continually improving an Information Security Management System (ISMS). It offers a more structured, risk-based framework and includes mandatory requirements organisations must meet.
SOC 2, on the other hand, emphasises control implementation rather than overall system governance. While ISO 27001 results in certification, SOC 2 results in an audit report—useful for demonstrating transparency to clients.
SOC 2 vs. GDPR
The General Data Protection Regulation (GDPR) is a legal framework that governs the collection and processing of personal data. It mandates specific rights for individuals and obligations for data controllers and processors.
While SOC 2 includes a Privacy category, it doesn’t directly ensure GDPR compliance. However, SOC 2’s emphasis on data confidentiality and access controls supports the implementation of GDPR requirements.
Organisations handling personal data often adopt both to demonstrate compliance and build trust with stakeholders.
SOC 2 vs. HIPAA
HIPAA (Health Insurance Portability and Accountability Act) is a U.S. regulation focused on protecting healthcare information. It applies specifically to healthcare providers, insurers, and their business associates. SOC 2 is not industry-specific, but when the Privacy and Confidentiality criteria are included, it can complement HIPAA by addressing overlapping concerns such as access management, data encryption, and breach notification. Many healthcare-related service providers pursue both to cover regulatory and client-driven needs.
SOC 2 vs. PCI DSS
PCI DSS (Payment Card Industry Data Security Standard) is a set of security requirements for organisations handling credit card data. It is highly prescriptive, with detailed control requirements and a defined validation process.
SOC 2 offers a more flexible approach and can be tailored to various industries, including finance. While PCI DSS ensures safe card transactions, SOC 2 addresses broader data protection concerns. Organisations in fintech or e-commerce may pursue both to meet contractual and operational expectations.
Shared Goals, Different Paths
Despite their differences, most compliance standards share common goals: protecting sensitive data, reducing risk, and building stakeholder trust. They differ in methodology, scope, and applicability:
- Scope: SOC 2 focuses on service organisations; others like GDPR and HIPAA are industry or region-specific.
- Structure: ISO 27001 and PCI DSS have clearly defined controls; SOC 2 allows for flexible implementation aligned with your environment.
- Outcome: SOC 2 results in an attestation report; ISO 27001 and PCI DSS result in certifications; whilst GDPR and HIPAA require legal compliance.
When to Combine Standards
Many organisations choose to adopt multiple frameworks. For instance, a cloud-based SaaS provider serving both UK and U.S. clients might pursue SOC 2, ISO 27001, and demonstrate GDPR compliance. Aligning these efforts through a unified compliance strategy reduces duplication and enhances your overall security posture.
Conclusion
Choosing the right compliance framework depends on your industry, client base, regulatory obligations, and business goals. SOC 2 stands out for its flexibility and focus on service organisations, making it an ideal choice for demonstrating trust and operational integrity. By understanding how it compares to other standards, your organisation can make informed decisions, ensure broader compliance coverage, and strengthen its position in an increasingly risk-conscious marketplace.
