ISO 27018
Code of practice for PII protection in public clouds
Basel III
Global framework for bank capital, leverage, liquidity standards
Quick Verdict
ISO 27018 provides voluntary cloud PII privacy controls for CSPs worldwide, while Basel III mandates binding capital, leverage, and liquidity rules for banks. CSPs adopt 27018 for trust and procurement; banks implement Basel III for regulatory compliance and resilience.
ISO 27018
ISO/IEC 27018:2025 PII protection in public clouds
Key Features
- Tailored PII controls for public cloud processors
- Requires subprocessor transparency and notifications
- Mandates prompt PII breach notifications
- Prohibits secondary PII use without consent
- Integrates with ISO 27001 ISMS audits
Basel III
Basel III: Finalising post-crisis reforms
Key Features
- Strengthened CET1 capital ratios and buffers
- Non-risk-based leverage ratio backstop
- Liquidity Coverage Ratio for 30-day stress
- Net Stable Funding Ratio for stability
- Output floor and RWA disclosure templates
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
ISO 27018 Details
What It Is
ISO/IEC 27018:2025 is a code of practice extending ISO 27001 and ISO 27002 for protecting personally identifiable information (PII) in public clouds where providers act as PII processors. Its primary scope targets cloud-specific privacy risks like multi-tenancy and cross-border flows, using a risk-based approach integrated into an Information Security Management System (ISMS).
Key Components
- Privacy-specific controls (~25-30) in organizational, technological domains
- Core principles: consent, purpose limitation, data minimization, transparency, accountability
- Builds on ISO 27001 Annex A (93 controls); assessed via Statement of Applicability (SoA)
- No standalone certification; audited within ISO 27001 processes
Why Organizations Use It
Enhances customer trust, accelerates procurement, aligns with GDPR Article 28, reduces cyber insurance friction. Offers competitive differentiation for CSPs, supports regulatory compliance, and demonstrates processor diligence.
Implementation Overview
Conduct gap analysis against existing ISMS, integrate controls, update contracts for subprocessors/breaches. Applies to CSPs of all sizes; requires annual audits post-ISO 27001 certification. Focuses on documentation, training, technical safeguards like encryption and logging.
Basel III Details
What It Is
Basel III is the international regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) following the 2007-2009 financial crisis. It establishes prudential standards for banks worldwide, focusing on enhancing the quantity and quality of capital, constraining leverage, and ensuring liquidity resilience. The framework employs a multi-layered, risk-based approach supplemented by non-risk-based metrics like leverage and liquidity ratios.
Key Components
- **Pillar 1Minimum capital ratios (CET1 4.5%, Tier 1 6%, Total 8%), plus buffers (Conservation 2.5%, Countercyclical, G-SIB); Leverage Ratio (3%); LCR and NSFR liquidity standards.
- **Pillar 2Supervisory review and ICAAP.
- **Pillar 3Standardized disclosures for RWA comparability. Built on refined RWA calculations with an output floor; implemented via national laws without central certification.
Why Organizations Use It
Banks implement Basel III to meet jurisdictional mandates, reducing systemic risk and model over-reliance. It lowers funding costs, boosts resilience, enables better asset allocation, and enhances market discipline through transparency, building stakeholder trust.
Implementation Overview
Phased enterprise transformation: governance setup, data/IT upgrades, model revisions, stress testing. Targets internationally active banks globally; involves supervisory audits and Pillar 3 reporting, no formal certification.
Key Differences
| Aspect | ISO 27018 | Basel III |
|---|---|---|
| Scope | PII protection in public clouds for processors | Bank capital, leverage, liquidity requirements |
| Industry | Cloud service providers, all sectors | Banking and financial institutions |
| Nature | Voluntary code of practice, extension of ISO 27001 | Mandatory prudential regulatory framework |
| Testing | ISO 27001 audits assess controls, annual surveillance | Ongoing supervisory review, stress testing, disclosures |
| Penalties | Loss of certification, market trust erosion | Fines, asset caps, business restrictions |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about ISO 27018 and Basel III
ISO 27018 FAQ
Basel III FAQ
You Might also be Interested in These Articles...
NIST CSF 2.0 Plain English Decoder: Translating Govern, Supply Chain, and Core Functions from Jargon to Actionable Insights
Demystify NIST CSF 2.0 jargon with plain English tables for Govern, Supply Chain & Core Functions. Actionable steps for risk oversight & vendor management. Empo
CMMC Cost Calculator: Realistic Budgets for Levels 1-3, C3PAO Fees, and ROI for Small DIB Suppliers
Calculate realistic CMMC costs for Levels 1-3: self-assessments, C3PAO fees, tooling, remediation & ROI. Interactive tool for small DIB suppliers. Get benchmark
The Service-Oriented SOC: Leveraging Maturity Assessments to Guarantee SLOs and Operational Predictability
Transform your SOC into a service provider using maturity assessments to standardize workflows, guarantee SLOs, and ensure predictability amid turnover and risi
Run Maturity Assessments with GRADUM
Transform your compliance journey with our AI-powered assessment platform
Assess your organization's maturity across multiple standards and regulations including ISO 27001, DORA, NIS2, NIST, GDPR, and hundreds more. Get actionable insights and track your progress with collaborative, AI-powered evaluations.
Check out these other Gradum.io Standards Comparison Pages
LEED vs ISO 27017
LEED vs ISO 27017: Compare green building certification with cloud security standards. Uncover prerequisites, credits, points & benefits for sustainable, secure operations. Choose wisely today!
GDPR vs U.S. SEC Cybersecurity Rules
Unpack GDPR vs U.S. SEC Cybersecurity Rules: Key diffs in privacy rights, breach reporting (72h vs 4 days), governance. Master global compliance strategies today!
CMMC vs FedRAMP
Compare CMMC vs FedRAMP: DoD's contractor cybersecurity tiers meet federal cloud standards. Unlock NIST controls, compliance paths & DIB success—expert guide now!