What is the primary objective of **SOC 2**?

**The primary objective of SOC 2 is to provide independent assurance that a service organization's controls meet the Trust Services Criteria (TSC) for security, availability, processing integrity, confidentiality, and privacy of customer data.** Developed by the AICPA, SOC 2 evaluates systems handling sensitive information, with Security (CC1-CC9) as the mandatory common criteria. Type 2 reports assess both design and operating effectiveness over 3-12 months, enabling stakeholders to verify robust controls like access management (CC6), risk assessment (CC3), and incident response.

Who is legally or professionally required to comply with **SOC 2**?

**No organization is legally required to comply with SOC 2, as it is a voluntary AICPA framework, but service organizations such as SaaS, cloud, and data processors face professional mandates from enterprise clients.** Targeted at entities storing, processing, or transmitting customer data, SOC 2 is demanded in RFPs, MSAs, and vendor risk assessments by Fortune 500 buyers, particularly for deals exceeding $5K ACV. Startups (10-50 employees) to enterprises (500+) in fintech, HR tech, and e-signatures pursue it to avoid deal disqualification.

Does **SOC 2** require an external audit or third-party certification?

**Yes, SOC 2 requires an external audit by an independent AICPA-accredited CPA firm to issue Type 1 or Type 2 attestation reports.** Type 1 validates control design at a point-in-time; Type 2 tests operating effectiveness over a monitoring period via sampling, walkthroughs, and evidence review (e.g., logs, pen tests). No formal "certification" exists—reports provide the assurance, with unqualified opinions confirming compliance.

How often should an assessment for **SOC 2** be performed?

**SOC 2 Type 2 assessments should be performed annually to capture a full 12-month control cycle, with bridge letters extending validity up to 3 months.** The monitoring period is typically 3-12 months minimum, followed by audit fieldwork (4-12 weeks). Post-audit, continuous monitoring ensures bridged renewals, avoiding re-audits for minor gaps.

What are the consequences of non-compliance with **SOC 2**?

**Non-compliance with client-mandated SOC 2 results in deal disqualification, extended sales cycles (3-6 months), and heightened breach liability, though no direct AICPA fines apply.** Enterprises reject non-compliant vendors in 70-80% of SaaS deals, inflating CAC by 20-50%; breaches without controls trigger CCPA penalties, $1M+ damages, and reputational harm delaying funding.

An **SOC 2** be mapped to other international frameworks?

**Yes, SOC 2 controls map extensively to frameworks like ISO 27001 (80% overlap, 114 controls), NIST CSF, GDPR (99 articles), and HIPAA via AICPA spreadsheets.** Common Criteria (CC1-CC9) align with ISO Annex A and NIST Govern/Detect functions, enabling unified evidence for multi-compliance without dual audits.

What is the first step to begin implementing **SOC 2**?

**The first step to implement SOC 2 is a scoping exercise and gap analysis against the Trust Services Criteria, engaging a CPA for readiness assessment ($5-10K).** Define in-scope systems, data flows, and TSC (Security mandatory), inventory assets, and map 50-100 controls, prioritizing quick wins like policies and IAM.

What is the primary objective of **ISO 31000**?

**ISO 31000’s primary objective is to provide principles, a framework, and process for managing risk to create and protect value.** It defines risk as “the effect of uncertainty on objectives,” enabling organizations to systematically identify, analyze, evaluate, treat, monitor, and report risks across any context (Clauses 4–6).

Who is legally or professionally required to comply with **ISO 31000**?

**No organization is legally required to comply with ISO 31000, as it provides voluntary guidelines rather than mandatory requirements.** It applies universally to any organization—public, private, large or small—where executives and risk professionals seek to integrate risk management into governance for better decision-making.

Does **ISO 31000** require an external audit or third-party certification?

**No, ISO 31000 does not require external audit or third-party certification.** ISO explicitly states it offers guidelines, not auditable requirements, so alignment is demonstrated through internal governance, records, monitoring, and reviews rather than certificates.

How often should an assessment for **ISO 31000** be performed?

**ISO 31000 assessments should be performed iteratively, with monitoring and review conducted continually or triggered by changes in context.** The dynamic principle and Clause 6.5 mandate ongoing checks via KPIs/KRIs, periodic reviews (e.g., quarterly), and event-driven reassessments for evolving risks.

What are the consequences of non-compliance with **ISO 31000**?

**Non-compliance with ISO 31000 carries no direct legal penalties, as it is a non-certifiable guideline.** Indirect consequences include heightened operational losses, regulatory scrutiny in aligned regimes, reputational damage, and suboptimal decisions from unmanaged uncertainty on objectives.

An **ISO 31000** be mapped to other international frameworks?

**Yes, ISO 31000 can be mapped to other international frameworks as its foundational principles, framework, and process support integration.** Clause 6’s risk steps align with management systems, enabling consistent risk handling across domains without prescribing specific tools.

What is the first step to begin implementing **ISO 31000**?

**The first step to implement ISO 31000 is securing leadership commitment and establishing the risk management framework (Clause 5).** Top management must issue a policy, define roles, integrate into governance, and understand organizational context before scaling the process.

SOC 2 vs ISO 31000

Standards Comparison

SOC 2

Voluntary

2010

AICPA framework auditing service organization controls

ISO 31000

Voluntary

2018

International guidelines for enterprise risk management

Quick Verdict

SOC 2 provides auditable controls assurance for service organizations handling customer data, while ISO 31000 offers principles-based risk management guidelines for any enterprise. Companies adopt SOC 2 for trust and sales acceleration; ISO 31000 for strategic decision-making and resilience.

Cybersecurity / Trust

SOC 2

System and Organization Controls 2

Cost

€€€€

Complexity

High

Implementation Time

6-12 months

Key Features

Type 2 audits prove operating effectiveness over time
Mandatory Security TSC with optional criteria
Independent AICPA CPA firm attestation
Flexible scoping for service organizations
Overlaps with ISO 27001 and NIST frameworks

Risk Management

ISO 31000

ISO 31000:2018 Risk management — Guidelines

Cost

€€€

Complexity

Medium

Implementation Time

12-18 months

Key Features

Eight principles guiding effective risk management
Framework embedding risk into governance and operations
Iterative process for risk identification and treatment
Customizable to any organization size or sector
Leadership commitment and continual improvement focus

Detailed Analysis

A comprehensive look at the specific requirements, scope, and impact of each standard.

SOC 2 Details

What It Is

SOC 2 (System and Organization Controls 2) is a voluntary audit framework from the AICPA evaluating service organizations' commitments to Trust Services Criteria (TSC)—security, availability, processing integrity, confidentiality, and privacy. It uses a risk-based, control-focused methodology for independent assurance on data handling systems.

Key Components

Five TSC: Security (mandatory, CC1-CC9 common criteria), plus optional Availability (A1), Confidentiality (C1), Processing Integrity (PI1), Privacy (P1-P11)
50-100 controls per scope, built on COSO principles
Type 1 (design at point-in-time) or Type 2 (design + operating effectiveness over 3-12 months)
CPA-attested reports with management assertions

Why Organizations Use It

Market-driven for SaaS/cloud providers to win enterprise deals
Reduces vendor risk scrutiny, accelerates sales by 15-30%
Builds trust, mitigates breach liabilities
Competitive moat via maturity signaling to investors/clients

Implementation Overview

Phased: scoping/gap analysis (4-8 weeks), deployment/monitoring (3-6 months), audit (1-2 months)
Targets service orgs (startups to enterprises) in tech/fintech
Automation (Vanta/Drata) + annual recertification required

ISO 31000 Details

What It Is

ISO 31000:2018, Risk management — Guidelines is a non-certifiable international standard providing principles, framework, and process for managing risk. Its primary purpose is to help organizations systematically address uncertainty affecting objectives, applicable to any size, sector, or type. It uses a principles-based, iterative approach focused on creating and protecting value.

Key Components

**Eight principlesIntegrated, structured, customized, inclusive, dynamic, best information, human/cultural factors, continual improvement.
Framework (Clause 5): Leadership commitment, integration, design, implementation, evaluation, improvement.
Process (Clause 6): Communication, scope/context/criteria, assessment (identify/analyze/evaluate), treatment, monitoring/review, recording/reporting.
Guidelines only; no certification model.

Why Organizations Use It

Enhances decision-making, resilience, and value creation; supports governance and strategy. Builds stakeholder trust, reduces losses, enables opportunities. Voluntary but aligns with regulations, boosts reputation and efficiency.

Implementation Overview

Phased: leadership alignment, gap analysis, pilot process, integration, monitoring. Tailored to context; involves policy, training, tools like GRC platforms. Universal applicability; no mandatory audits.

Key Differences

Aspect	SOC 2	ISO 31000
Scope	Trust Services Criteria: security, availability, confidentiality, etc.	Enterprise-wide risk management principles, framework, process
Industry	SaaS, cloud, tech service organizations, any size	All industries, sectors, organizations worldwide
Nature	Voluntary AICPA audit attestation, Type 1/2 reports	Voluntary non-certifiable guidelines, no audits
Testing	CPA audits Type 2 over 3-12 months, operating effectiveness	Internal monitoring, reviews, no external certification
Penalties	No legal penalties, market disqualification, lost deals	No penalties, operational/reputational risks only

Scope

SOC 2

Trust Services Criteria: security, availability, confidentiality, etc.

ISO 31000

Enterprise-wide risk management principles, framework, process

Industry

SOC 2

SaaS, cloud, tech service organizations, any size

ISO 31000

All industries, sectors, organizations worldwide

Nature

SOC 2

Voluntary AICPA audit attestation, Type 1/2 reports

ISO 31000

Voluntary non-certifiable guidelines, no audits

Testing

SOC 2

CPA audits Type 2 over 3-12 months, operating effectiveness

ISO 31000

Internal monitoring, reviews, no external certification

Penalties

SOC 2

No legal penalties, market disqualification, lost deals

ISO 31000

No penalties, operational/reputational risks only

Frequently Asked Questions

Common questions about SOC 2 and ISO 31000

SOC 2 FAQ

ISO 31000 FAQ

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SOC 2

ISO 31000

Quick Verdict

SOC 2

Key Features

ISO 31000

Key Features

Detailed Analysis

SOC 2 Details

What It Is

Key Components

Why Organizations Use It

Implementation Overview

ISO 31000 Details

What It Is

Key Components

Why Organizations Use It

Implementation Overview

Key Differences

Scope

Industry

Nature

Testing

Penalties

Frequently Asked Questions

SOC 2 FAQ

What is the primary objective of SOC 2?

Who is legally or professionally required to comply with SOC 2?

Does SOC 2 require an external audit or third-party certification?

How often should an assessment for SOC 2 be performed?

What are the consequences of non-compliance with SOC 2?

An SOC 2 be mapped to other international frameworks?

What is the first step to begin implementing SOC 2?

ISO 31000 FAQ

What is the primary objective of ISO 31000?

Who is legally or professionally required to comply with ISO 31000?

Does ISO 31000 require an external audit or third-party certification?

How often should an assessment for ISO 31000 be performed?

What are the consequences of non-compliance with ISO 31000?

An ISO 31000 be mapped to other international frameworks?

What is the first step to begin implementing ISO 31000?

You Might also be Interested in These Articles...

The Regulatory Radar: How Data-Driven Compliance Tools Provide Strategic Foresight

HITRUST CSF MyCSF Platform Deep Dive: Automating Evidence Collection for Continuous R2 Renewal in Multi-Regulated Environments 2025

The DORA 'Hot Seat' Blueprint: Preparing Leadership and the Management Body for Regulatory Interviews

Run Maturity Assessments with GRADUM

Check out these other Gradum.io Standards Comparison Pages

FERPA vs ISO 41001

ITIL vs ISO 26000

RoHS vs FISMA