The world of information security and compliance can be complicated to navigate, leaving you with questions as you work to improve your organization’s security posture. In this series, Boulay’s Risk Advisory Team answers some of the most frequently asked questions (FAQs) about SOC 2 reports, ISO 27001 certifications, and other security compliance frameworks.
Do I need to purchase a Cyber Insurance policy in order to meet SOC 2 and ISO 27001 requirements?
Both the SOC 2 and ISO 27001 security compliance frameworks assess an organization’s security controls and processes and how they contribute to its overall cybersecurity posture. While neither framework explicitly requires cyber insurance to meet compliance standards, each has a slightly different approach to the topic. Let’s explore the specific requirements of SOC 2 and ISO 27001 to understand their distinctions.
SOC 2: The AICPA’s trust services criteria and points of focus for SOC 2 reporting indicates in the Risk Mitigation section (common criteria 9.1) that an organization should consider the use of insurance to mitigate financial impact risks. The decision on whether a cyber insurance policy is necessary to achieve the organization’s objectives is therefore a business decision. SOC 2 does not mandate a cyber insurance policy; however, if a company chooses not to purchase one, there should at least be a thorough risk assessment completed to support the decision.
ISO 27001: Similar to SOC 2, there is no explicit requirement for companies to purchase cyber insurance in order to earn an ISO 27001 certification. However, Clauses 6.1 and 6.2 of the ISO 27001 requirements call for an organization to define and apply an information security risk assessment and treatment process to identify risks and select appropriate treatment options. Therefore, a decision on whether to purchase cyber insurance should also be risk-based and supported by this thorough risk assessment process.
Helping You Get There…
Boulay’s Risk Advisory Team is here to answer your questions about ISO 27001 certificates, SOC 2 reports and other aspects of security compliance, so you can move forward with confidence. For more information regarding Boulay’s SOC 2 reporting and ISO 27001 certification services, connect with us today.