SOC 2 Type 2 Vs. NIST 800-171

When it comes to data security frameworks, SOC 2 Type 2 and NIST 800-171 are two widely recognized standards. Although both aim to strengthen data security, they serve different purposes and target distinct audiences.

NIST stands for the National Institute of Standards and Technology. It’s a U.S. federal agency that develops and promotes measurement standards, including those for cybersecurity. NIST was developed to mandate stricter safeguards for Controlled Unclassified Information (CUI) across federal agencies.

NIST 800-171 is primarily aimed at federal contractors and organizations that handle CUI but it also applies to any non-federal organization that processes or stores CUI. This includes universities, research entities, and other organizations processing federal data. These entities are required to comply with specific security standards to safeguard sensitive government information from unauthorized access and disclosure.

SOC 1, 2, and 3 are all System and Organization Control (SOC) frameworks developed by the American Institute of Certified Public Accountants (AICPA) as part of an auditing standard called the Statement on Standards for Attestation Engagements (SSAE). SOC 1 focuses on financial reporting and SOC 2 focuses on information security. SOC 3 is a higher- level version of SOC 2 that is often released publicly as marketing collateral. You can’t get a SOC 3 report without first getting a SOC 2.

SOC 2 Type 2

This framework focuses on service organizations and their ability to manage customer data based on five Trust Service Criteria: security, availability, processing integrity, confidentiality, and privacy. SOC 2 Type 2 aims to ensure service providers have the necessary controls to protect their clients' data.

SOC 2 Type 2 has become more important recently due to many factors, including those listed below.

• Increased Cybersecurity Threats: With the rise in data breaches and cyber attacks, organizations are under more pressure to prove their data security measures. SOC 2 Type 2 reports provide a high level of assurance that a company’s controls are effective over time.
• Customer Demand: Many enterprise clients now require their service providers to have SOC 2 Type 2 compliance as part of their vendor risk management.
• Regulatory and Compliance Requirements: As data protection regulations become stricter, organizations need to demonstrate robust cybersecurity practices. SOC 2 Type 2 compliance helps meet these regulatory requirements and build trust with clients.
• Competitive Advantage: Having a SOC 2 Type 2 report can differentiate a company in a crowded market, showing a commitment to maintaining high cybersecurity standards.

Assessments

SOC 2 Type 2 requires an independent external audit. This audit evaluates the operational effectiveness of the organization’s controls over a specific period, usually 6 to 12 months. The audit report provides clients and stakeholders with assurance that the organization's controls are working as intended.

Unlike SOC 2, NIST 800-171 does not mandate a formal third-party audit. Instead, it involves self-assessment and documentation of compliance with 110 security requirements categorized into 14 control families (e.g., access control, incident response, and system integrity). Organizations must ensure they meet these requirements to protect CUI, though some federal contracts may require third-party assessments.

Primary Differences

SOC 2 takes a broader approach to data management, focusing on several trust principles (security, availability, etc.), and applies to general service organizations.

NIST 800-171, however, is narrowly focused on the protection of CUI, emphasizing technical and procedural safeguards required by federal regulations.

Compliance Vs. Assurance

SOC 2 provides assurance through an external audit, which demonstrates that an organization’s controls are operating effectively.

NIST 800-171 is more about compliance with specific security requirements. Compliance is usually self-attested, but contractors may be subject to government reviews or assessments as part of federal contract terms.

Target Users

SOC 2 is widely adopted by service organizations (especially in IT, SaaS, and data processing) that want to showcase their data security practices.

NIST 800-171, on the other hand, is mandatory for federal contractors and organizations that handle government data, ensuring that they comply with specific security measures to safeguard CUI. While both SOC 2 Type 2 and NIST 800-171 aim to strengthen data security, they cater to different sectors and have different assessment methods. SOC 2 provides a comprehensive framework for service organizations to manage and protect customer data, offering assurance through third-party audits. NIST 800-171 sets specific security requirements for the protection of CUI, focusing on compliance for federal contractors and organizations handling sensitive government data.

Understanding these differences is essential for organizations to choose the right framework based on their operational requirements, regulatory environment, and the type of data they manage.

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Learn More About Compliance

• SOC 2 Type 2 Vs. NIST 800-171
• CMMC Final Rule Announced
• Visit our Trust Center to request STACK Cyber's SOC 2 Type 2 report