SOC 2 and ISO 27001 provide a structured approach to managing sensitive information and ensuring data security, but they also come with their own set of costs and benefits.

In today's cybersecurity landscape, achieving compliance with recognized standards such as SOC 2 and ISO 27001 has become a priority for many organizations. In this article, we'll explore the financial and operational implications of becoming SOC 2 or ISO 27001 compliant as well as how these certifications can benefit your organization.

What Are SOC 2 and ISO 27001?

SOC 2 (System and Organization Controls 2) is an auditing procedure that ensures service providers manage customer data securely. It is based on five Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy, with only the first of these being mandatory. In recent years, companies seeking SOC 2 compliance has risen almost 50%, and it is particularly popular among SaaS organizations.

ISO 27001 is an international standard for information security management systems (ISMS). It provides a framework for managing IT security risks and includes requirements for establishing, implementing, maintaining, and continually improving an ISMS. In this sense, it is a wider and more rigorous framework than SOC 2, but generally more expensive to implement.

While SOC 2 is more common in North America, ISO 27001 has gained far more international popularity.

The Costs of Becoming SOC 2 or ISO 27001 Compliant

The costs of compliance are hardly straightforward and vary greatly between companies. Aside from the overall external auditing fee, compliance will need to be maintained from year to year, generating recurring costs. In addition, depending on a company's existing maturity level, additional investments in talent, documentation, tools, and security testing will need to be acquired during the compliance journey.

Tip: Due to the complexity of obtaining organization-wide compliance, partnering with a single external security team like Silent Breach who can provide everything you'll need in one place will significantly reduce your costs while accelerating your timeline.

With that being said, here are a list of general costs that can be used as a rule of thumb when considering whether compliance is the right step for your organization.

Step 1:Initial Assessment and Gap Analysis
Conducting a readiness assessment to identify gaps in your current security posture can cost between $10,000 and $30,000. This varies depending on the size and complexity of your organization. At Silent Breach, we perform a gap assessment against your target framework, including team interviews, tailored audits and security procedures discovery.

Step 2: Implementation Costs
Depending on your relative maturity when beginning the certification process, implementing the necessary controls and procedures can be a major expense. This includes purchasing security tools, training employees, and potentially hiring new staff or consultants. Most importantly, you'll need to create or update policies, procedures, and practices to align with your chosen frameworks' requirements. Implementation costs can range from $50,000 to $100,000.

Step 3: Auditing and Certification
Once all gaps have been addressed, the audit itself will be conducted by an independent CPA firm, with costs ranging from $20,000 to $60,000 depending on the scope and complexity of the audit. Silent Breach partners directly with CPA firms to ensure that our clients recieve optimal pricing and scheduling.

Step 4: Ongoing Compliance and Maintenance
Maintaining compliance requires regular internal audits, surveillance audits by the certification body, continuous monitoring, and possibly annual external audits. While implementation costs will be low (assuming that few changes have taken place), ongoing costs can range from $20,000 to $50,000 annually.

The Benefits of Becoming SOC 2 or ISO 27001 Compliant

With overall costs ranging from $80,000 - $190,000, the question naturally becomes: is it worth it?

Again, the answer to this will naturally depend on the context of your organizational journey and requirements. Many companies will be required to comply with a major security framework to access certain contracts, investments, or clients. However, even those who are voluntarily pursuing compliance will notice a wide range of benefits from standardizing and maintaining a world-class security program.

Enhanced Trust and Credibility: SOC 2 and ISO 27001 certifications are a tangible way to give prospects the peace of mind they need to do business with you. In a competitive market, compliance can be a distinguishing factor that sets your organization apart. This certification can serve as a powerful marketing tool, showcasing your commitment to high security standards.

Improved Internal Processes and Risk Management: The rigorous process of achieving cybersecurity compliance ensures the establishment and reinforcement of robust internal controls and processes. This can result in a more secure, efficient, and resilient organization, resulting in lower long-terms costs and protection against major cybersecurity risks.

Implementing SOC 2 or ISO 27001 frameworks often leads to more streamlined processes and better-defined roles and responsibilities, resulting in increased operational efficiency and reduced redundancy.

Regulatory Compliance: Although cybersecurity compliance is usually not legally required, it will often be requested as part of a large purchase, partnership, or investment. Because SOC 2 and ISO 27001's requirements dovetail with other frameworks, including HIPAA, GDPR, and CCPA, attaining certification can also speed your organization's overall compliance efforts.

Risk Management: Both frameworks provide a structured approach to identifying, assessing, and mitigating risks, leading to more proactive and effective risk management practices.

In addition, achieving compliance requires comprehensive employee training, which increases overall awareness and understanding of security best practices across the organization.

Conclusion

Becoming SOC 2 or ISO 27001 compliant involves significant financial and operational investments. However, the benefits, including enhanced security posture, increased customer trust, regulatory compliance, operational efficiency, market differentiation, improved risk management, and heightened employee awareness, can often outweigh the costs. Achieving these certifications not only demonstrates your organization's commitment to data security but also positions it for long-term success in an increasingly security-conscious world.

Silent Breach offers an Accelerated Cyber Compliance program to help organizations reach compliance in as little as 90 days. Contact us for a same-day quote.

About Silent Breach: Silent Breach is an award-winning provider of cyber security services. Our global team provides cutting-edge insights and expertise across the Data Center, Enterprise, SME, Retail, Government, Finance, Education, Automotive, Hospitality, Healthcare and IoT industries.