When it comes to securing your organisation’s data, the right security standard can make all the difference. Two widely recognised frameworks in the cybersecurity world are SOC 2 & NIST. But what’s the difference between SOC 2 and NIST? Which one is right for your organisation? This article will explore the key differences & help you make an informed choice.
What is SOC 2?
SOC 2 (System and Organization Controls) is a Security Framework created by the American Institute of Certified Public Accountants [AICPA]. It focuses on managing & securing data that is crucial to the privacy & interests of clients. SOC 2 reports are typically used by service organisations, especially those in technology, SaaS, & Cloud Computing sectors.
SOC 2 focuses on five “trust service criteria”:
- Security: Protection of systems against unauthorized access.
- Availability: Ensuring the system is available for operation & use.
- Processing Integrity: Systems perform as expected without errors or delays.
- Confidentiality: Ensuring that sensitive information is protected.
- Privacy: Protecting personal information from unauthorized access.
SOC 2 Compliance helps demonstrate that an organisation follows best practices in these areas, ensuring the trust of Customers & Stakeholders.
What is NIST?
NIST (National Institute of Standards & Technology) is a federal agency in the U.S. that develops frameworks & guidelines to help organisations manage their cybersecurity practices. The NIST Cybersecurity Framework (CSF) is one of the most well-known resources.
NIST is more comprehensive & offers a wide range of guidelines & standards, such as:
- NIST SP 800-53: Security & privacy controls for federal information systems.
- NIST SP 800-171: Protecting controlled unclassified information in non-federal systems.
- NIST CSF: A risk-based approach to managing cybersecurity.
The NIST framework is not limited to a single report or criteria like SOC 2. It provides a broad set of guidelines for securing information across an entire organisation, from operational to management controls.
The Key Differences between SOC 2 and NIST
Scope & Application
One of the key differences between SOC 2 and NIST is their scope. While SOC 2 focuses mainly on service organisations & how they secure Customer Data, NIST is broader & covers a wide range of industries, including federal agencies, state governments, & private sector businesses.
SOC 2 is more focused on reporting security & privacy practices, typically in the form of an audit report. In contrast, NIST provides a series of guidelines & best practices that can be implemented across an organisation’s cybersecurity program.
Structure & Complexity
SOC 2 is more prescriptive in its approach. Organisations must meet the specific requirements under the five trust service criteria. NIST, on the other hand, provides a broader framework with multiple controls, making it more complex to implement.
SOC 2 is typically quicker to implement because it has a clear framework. NIST requires a deeper commitment to follow the full set of guidelines, making it a more resource-intensive process.
Flexibility
Another difference between SOC 2 and NIST is the level of flexibility. SOC 2 is more focused on meeting a set of criteria for audit purposes, while NIST is a framework that offers flexibility in how controls are implemented. NIST’s guidelines can be tailored to fit the specific needs of an organisation, allowing for more customised security strategies.
Key Considerations when choosing between SOC 2 and NIST
Regulatory Requirements
If your organisation operates in a regulated industry or handles sensitive government data, NIST’s guidelines may be more appropriate. Federal agencies & contractors are often required to comply with NIST standards. On the other hand, if your business is more Customer-focused & deals with service agreements, SOC 2 could be a better fit.
Industry Focus
SOC 2 is particularly important for SaaS companies, IT service providers, & any business that handles third-party Customer Data. It is designed to build trust with Clients & Stakeholders. NIST, however, applies more broadly across government entities, contractors, & large enterprises, offering a more comprehensive approach to managing cybersecurity risks.
Level of Resource Commitment
SOC 2 audits are typically less resource-intensive, making them an appealing option for smaller organisations with limited cybersecurity teams. NIST, due to its broad guidelines, may require more resources, including skilled professionals to implement & maintain the framework.
Risk Management Approach
If your organisation’s cybersecurity strategy is focused on risk management, NIST provides a comprehensive approach with its risk-based methodology. This can be especially helpful in organisations with complex or evolving security needs. SOC 2, while robust in its trust service criteria, does not offer the same level of detailed risk management.
Comparison Table: SOC 2 vs NIST
| Feature | SOC 2 | NIST |
| Scope | Primarily for service organisations | Broad, covering all sectors |
| Framework Type | Prescriptive with specific trust criteria | Flexible, risk-based guidelines |
| Focus | Customer Data protection | Comprehensive cybersecurity management |
| Audit/Certification | Results in a SOC 2 audit report | No formal audit, but offers a framework for compliance |
| Implementation | Quicker & easier to implement | More complex & resource-intensive |
| Regulatory Requirement | Not specific to government agencies | Required for government & contractors |
Conclusion
The difference between SOC 2 and NIST is significant, & the right choice depends on your organisation’s specific needs. SOC 2 offers a focused, streamlined approach to data security for Customer-centric businesses, especially in tech industries. NIST, on the other hand, is a more flexible, comprehensive set of guidelines better suited for organisations that need to address a wide range of cybersecurity concerns, including those in regulated industries.
Takeaways
- SOC 2 is ideal for service organisations handling Customer Data, offering a clear framework & a quicker implementation process.
- NIST is more comprehensive & flexible, suited for organisations looking for a detailed, risk-based approach to cybersecurity.
- NIST’s guidelines are often required for government contractors & regulated industries, while SOC 2 is widely used in the tech & SaaS sectors.
- Choosing between SOC 2 & NIST depends on your industry, regulatory requirements, & available resources.
FAQ
What is SOC 2 Compliance?
SOC 2 Compliance is a certification that demonstrates an organisation has met specific security standards for managing & protecting Customer Data.
Is NIST only for government organisations?
No, while NIST guidelines are required for government contractors, they are also widely adopted in private-sector organisations, particularly those with complex cybersecurity needs.
Can SOC 2 & NIST be implemented together?
Yes, many organisations implement both frameworks to ensure comprehensive data security practices & meet various regulatory & Customer requirements.
Is SOC 2 sufficient for my cybersecurity needs?
SOC 2 may be sufficient for businesses that focus on Customer Data security but does not cover the broader range of cybersecurity risks that NIST addresses.
Featured Content
- What is SOC 2?
- What is NIST?
- The Key Differences between SOC 2 & NIST
- Scope & Application
- Structure & Complexity
- Flexibility
- Key Considerations When Choosing Between SOC 2 & NIST
- Regulatory Requirements
- Industry Focus
Excerpt
The difference between SOC 2 and NIST lies in scope, flexibility, & application. SOC 2 is Customer-focused, while NIST offers a more comprehensive, risk-based framework.
