Compliance Frameworks: SOC 2, ISO 27001, and NIST Explained

Here’s the reality: Your customers want to know their data is safe. Your partners need assurance. Regulators require proof. Compliance frameworks provide that proof. But they can seem overwhelming - SOC 2, ISO 27001, NIST, PCI DSS, HIPAA… Let’s break them down so you understand what they actually mean and why they matter.

What is Compliance, Really?

Compliance means following rules, standards, or laws. In cybersecurity, it means proving you have security controls in place.

Think of it like this:

• Without compliance: “Trust us, we’re secure” (not very convincing)
• With compliance: “Here’s our SOC 2 report proving we’re secure” (much more convincing)

Why it matters:

1. Customer Trust - Customers want proof you’re secure
2. Business Requirements - Many companies require compliance to do business
3. Legal Requirements - Some industries require it by law
4. Risk Management - Helps identify and fix security gaps

SOC 2: Service Organization Control 2

What is SOC 2?

SOC 2 is a framework for service organizations (SaaS companies, cloud providers, etc.) to prove they have security controls.

Think of it as: A report card for your security practices.

The 5 Trust Service Criteria

SOC 2 evaluates 5 areas:

1. Security - Required for all SOC 2 reports
2. Availability - Systems are available when needed
3. Processing Integrity - Data processing is accurate
4. Confidentiality - Sensitive data is protected
5. Privacy - Personal information is handled properly

Most companies start with Security only, then add others as needed.

SOC 2 Types

• Type I - “We have controls in place” (point in time)
• Type II - “We have controls and they work” (over 6-12 months)

Type II is more valuable - it proves your controls actually work over time.

What You Need for SOC 2

1. Access Controls - Who can access what
2. Change Management - How you manage changes
3. Monitoring - Logging and alerting
4. Incident Response - What you do when something goes wrong
5. Risk Assessment - Identifying and managing risks

Real-world example: Your compliance tool helps with SOC 2 by automatically checking:

• IAM policies (access controls)
• S3 encryption (confidentiality)
• Security group configurations (security)
• VPC flow logs (monitoring)

SOC 2 Process

1. Gap Assessment - Find what’s missing
2. Remediation - Fix the gaps
3. Audit - External auditor reviews everything
4. Report - Get your SOC 2 report
5. Maintenance - Keep controls working (annual audits)

Timeline: 6-12 months for first Type II report Cost: $20,000 - $100,000+ depending on scope

ISO 27001: Information Security Management

What is ISO 27001?

ISO 27001 is an international standard for information security management systems (ISMS).

Think of it as: A comprehensive security management system, not just controls.

Key Differences from SOC 2

Feature	SOC 2	ISO 27001
Focus	Controls	Management System
Scope	Service organizations	Any organization
Certification	Report	Certificate
Geographic	Primarily US	International

ISO 27001 Structure

14 Control Domains:

1. Information Security Policies
2. Organization of Information Security
3. Human Resource Security
4. Asset Management
5. Access Control
6. Cryptography
7. Physical and Environmental Security
8. Operations Security
9. Communications Security
10. System Acquisition, Development, and Maintenance
11. Supplier Relationships
12. Information Security Incident Management
13. Business Continuity
14. Compliance

That’s a lot! Most organizations implement a subset based on their needs.

ISO 27001 Process

1. Define Scope - What’s included
2. Risk Assessment - Identify risks
3. Implement Controls - Put controls in place
4. Internal Audit - Check yourself
5. External Audit - Get certified
6. Maintain - Annual surveillance audits

Timeline: 12-18 months Cost: $30,000 - $150,000+

NIST: National Institute of Standards and Technology

What is NIST?

NIST creates cybersecurity frameworks. The most popular is NIST Cybersecurity Framework (CSF).

Think of it as: A flexible framework you can adapt to your needs.

NIST Cybersecurity Framework

5 Core Functions:

1. Identify - Understand your systems and risks
2. Protect - Implement safeguards
3. Detect - Find security events
4. Respond - Handle incidents
5. Recover - Restore operations

Unlike SOC 2 and ISO 27001, NIST is voluntary - but many organizations use it.

NIST 800-53

NIST 800-53 is a more detailed control catalog, often used by government contractors.

18 Control Families:

• Access Control
• Audit and Accountability
• Security Assessment
• Configuration Management
• And 14 more…

Real-world use: Required for many US government contracts.

Comparing the Frameworks

When to Use Which?

SOC 2:

• SaaS companies
• Cloud service providers
• B2B software companies
• When customers ask for it

ISO 27001:

• International companies
• Organizations wanting certification
• Companies in regulated industries
• When you need a management system

NIST:

• Government contractors
• Organizations wanting flexibility
• Companies building security programs
• When you need a framework, not certification

Can You Do Multiple?

Yes! Many companies do:

• SOC 2 for customers
• ISO 27001 for international markets
• NIST for government contracts

The good news: They overlap a lot. Controls for one help with others.

How Your Compliance Tool Helps

Your automated compliance tool helps with all these frameworks by:

1. Continuous Monitoring

Instead of checking once a year, check continuously:

# Daily compliance checks
def daily_compliance_scan():
    findings = {
        'soc2': check_soc2_controls(),
        'iso27001': check_iso27001_controls(),
        'nist': check_nist_controls()
    }
    return findings

2. Evidence Collection

Automatically collect evidence for audits:

def collect_audit_evidence():
    evidence = {
        'iam_policies': get_all_iam_policies(),
        's3_encryption': check_s3_encryption(),
        'security_groups': audit_security_groups(),
        'vpc_flow_logs': verify_flow_logs()
    }
    return evidence

3. Gap Analysis

Identify what’s missing:

def gap_analysis():
    required_controls = load_framework_requirements('soc2')
    current_controls = scan_current_state()
    
    gaps = []
    for control in required_controls:
        if not is_implemented(control, current_controls):
            gaps.append(control)
    
    return gaps

Common Compliance Controls

Access Control (All Frameworks)

What it means: Control who can access what.

How to implement:

• IAM policies with least privilege
• Multi-factor authentication
• Regular access reviews

Your tool checks:

• IAM policies for wildcards
• MFA enforcement
• Access key rotation

Encryption (All Frameworks)

What it means: Protect data at rest and in transit.

How to implement:

• Encrypt S3 buckets
• Use HTTPS/TLS
• Encrypt databases

Your tool checks:

• S3 encryption status
• Security group rules (HTTPS only)
• Database encryption

Monitoring (All Frameworks)

What it means: Know what’s happening in your systems.

How to implement:

• CloudTrail for API logging
• VPC Flow Logs for network traffic
• SIEM for security events

Your tool checks:

• CloudTrail enabled
• Flow logs enabled
• Log retention periods

Incident Response (All Frameworks)

What it means: Have a plan when things go wrong.

How to implement:

• Incident response plan
• Automated alerting
• Regular testing

Your tool helps:

• Automated security scanning
• Alerting on findings
• Evidence collection

Building a Compliance Program

Step 1: Choose Your Framework

Start with what your customers/partners need:

• B2B SaaS? → SOC 2
• International? → ISO 27001
• Government? → NIST

Step 2: Gap Assessment

Find what’s missing:

• Use your compliance tool
• Review framework requirements
• Document gaps

Step 3: Remediate

Fix the gaps:

• Implement missing controls
• Update policies
• Train staff

Step 4: Maintain

Keep it working:

• Continuous monitoring
• Regular audits
• Update controls as needed

Key Takeaways

1. Compliance = Proof - Shows you’re secure
2. SOC 2 - For service organizations (US-focused)
3. ISO 27001 - International standard (certification)
4. NIST - Flexible framework (voluntary)
5. They Overlap - Controls help with multiple frameworks
6. Automation Helps - Tools like yours make compliance easier
7. It’s Ongoing - Not a one-time thing

Practice Exercise

Try this yourself:

1. Review SOC 2 Trust Service Criteria
2. Map your current AWS controls to SOC 2
3. Identify gaps using your compliance tool
4. Create a remediation plan
5. Document evidence for one control

Resources to Learn More

• SOC 2 Guide
• ISO 27001 Standard
• NIST Cybersecurity Framework

What’s Next?

Congratulations! You’ve now learned all the skills needed to build and understand the automated AWS compliance tool:

1. ✅ AWS IAM - Access control
2. ✅ AWS S3 - Secure storage
3. ✅ EC2 Security Groups - Network security
4. ✅ AWS VPC - Network architecture
5. ✅ Python & Boto3 - Automation
6. ✅ Docker - Containerization
7. ✅ Kubernetes - Orchestration
8. ✅ Elasticsearch/SIEM - Security monitoring
9. ✅ CI/CD Security - Secure deployments
10. ✅ Infrastructure as Code - Managing infrastructure
11. ✅ Compliance Frameworks - Understanding requirements

You’re now ready to build production-ready security tools and understand enterprise security requirements!

💡 Pro Tip: Start with one framework (usually SOC 2 for SaaS companies). Get that right, then consider others. Don’t try to do everything at once - compliance is a journey, not a destination!

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You’ve completed the learning path! Go back to the main compliance tool tutorial and build it with confidence. You now understand every component!