SOC 2 Reports and ISO 27001 Certification for Law Firms: Why Now?
By their very nature, law firms operate at the intersection of large amounts of sensitive client data, making them prime targets for data breaches: In fact, 21 firms filed data breach reports in the first half of 2024 alone, compared to 28 firms throughout the entirety of 2023. As more firms move their client data to the cloud, it’s important to safeguard sensitive data and put robust internal controls in place to uphold data security obligations.
Many law firms may consider pursuing third-party assurance of their security practices, in part due to the increasingly dangerous breach environment, and more broadly to manage risk and build client trust. Specifically, firms may look toward a Systems and Organization Controls (SOC) 2 reports and/or an ISO 27001 — a certification related to information security management. Though these requirements have not always been commonplace among law firms, more of them may elect to pursue such industry activities to demonstrate the strength of their internal control environment, mitigate data breach risks, and build trust with stakeholders.
Client Pressure for Attestation Reports Likely to Increase
Clients are placing pressure on law firms to pursue SOC 2 or ISO 27001 to better identify and mitigate the risk of cybersecurity incidents. This trend is likely to continue as attestation reports become a common prerequisite for law firms to participate in Requests for Proposals or as clients begin to include them in their contracts. The primary driver is the sensitive nature of the data that law firms handle. No matter the circumstance, proactively pursuing a report to showcase effective internal controls and processes can be a competitive differentiator.
Larger law firms will often find that enterprise-level clients with strict vendor risk management requirements are especially likely to ask for a SOC 2 report and/or ISO 27001 certification. But this does not only apply to large firms; mid-size firms should also consider pursuing attestation and certification if they want to move upmarket and grow their business.
Understanding the Nuances and Benefits of Attestation Types
Data breaches and cyber incidents are not a matter of if, but when. To mitigate the risk of an attack and get started, consider that strong cybersecurity programs are often built around the SOC 2 and ISO 27001 standards. Best practice is to adopt one of these frameworks and then add further controls designed to meet the unique needs of a specific organization, tailored to the ways in which data is collected, stored, organized, accessed, and protected within the firm.
Though both SOC 2 and ISO 27001 can convey data protection and information security capabilities, they are different, and law firms should choose the framework that works best for them.
SOC 2 attestation is a widely adopted reporting approach and is well-suited to companies that have already adopted SOC 2 reporting for security. Key elements of SOC 2 include:
- Contains a defined set of common control requirements
- Results in a report that describes overall security processes, detailed controls, and the auditor’s testing and results
- Includes both descriptive and control components that help organizations articulate their controls to demonstrate their effectiveness
ISO 27001 is a certification which can serve as an additional information security credential for a firm. ISO 27001 is well-suited to those actively pursuing international growth as the ISO 27001 certification is internationally recognized. Key elements of ISO 27001 include:
- Globally recognized standard which provides a robust set of requirements for implementing and managing an Information Security Management System (ISMS)
- Helps organizations meet legal, regulatory, and contractual requirements related to information security by reducing the risk of non-compliance.
- Can be expanded to include other ISO standards, such as ISO 27701 for privacy information management.
- Provides guidelines for risk assessment/management, managing information security incidents, and business continuity, among other security requirements.
Third-party attestation services involve upfront investment, but the benefits often outweigh the costs or perceived roadblocks.
Common Concern or Perception | Benefits |
| Third-party attestations such as SOC 2 or ISO 27001 seem unnecessary for a law firm and better suited for technology providers. | This is no longer the case. Law firms collect and store troves of sensitive information, much like tech companies or software service providers.
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| Granting a third-party access to conduct the attestation takes too much time and disrupts the flow of business. | Allowing a third-party access to perform attestation:
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| It’s an elective expense, so it is not a priority or can be done later when the client requires it. | Demonstrating proactivity around protecting client data speaks volumes. |
| Similarly, the measurable ROI is unclear. |
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What’s Next?
Law firms can differentiate themselves by being early adopters of SOC 2 reports or ISO 27001 certifications. Attestation services such as these allow firms to identify critical controls gaps and address them, helping to avoid a costly breach and the repercussions that come with it, such as negative publicity, business disruption, and diminished trust with clients.
BDO’s Third Party Attestation team can help you build trust with your clients and minimize exposure to cyber incidents through various compliance assessments like SOC 2, SOC for Cybersecurity, and ISO 27001.
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