Expanding into the U.S. market offers Europe-based cloud service providers (CSPs) exciting new growth opportunities—but cybersecurity standards aren’t exactly the same across the pond.
For security leaders who are used to GDPR and other European frameworks, it may come as a surprise that there is no national, comprehensive data privacy legislation in the United States. But while adhering to compliance frameworks like ISO 27001 and SOC 2 isn’t federally mandated, it is often required in order to do business with parties in the U.S.
Many businesses operating in the U.S. expect to be able to review a SOC 2 report in addition to an ISO 27001 certification before signing on new vendors. There are also state-level regulations, including the California Consumer Privacy Act (CCPA), that outline more stringent data security requirements.
If you’re just starting to dip your toes into the U.S. market, here’s everything you need to know about security compliance in the American public and private sectors:
In North America, a System and Organization Controls (SOC) 2 report is a popular way for CSPs to demonstrate their commitment to data security. SOC 2 examinations do not result in a certification; instead, the result is a CPA’s report attesting to the effectiveness of an organization’s controls over one or more of the five trust services criteria developed by the American Institute of CPAs (AICPA):
Current and potential customers can use a SOC 2 report to evaluate a cloud service organization’s data security and threat mitigation procedures as part of their vendor risk assessments. This helps build trust with stakeholders and position your organization as one that prioritizes security and reliability.
For organizations that have already achieved ISO 27001 certification, adding a SOC 2 report is a seamless addition to your compliance program thanks to BARR’s coordinated audit approach. Leveraging our dedicated certification body, BARR’s team of experts can map SOC 2 control requirements during your ISO 27001 meetings. This methodology allows your organization to bypass additional walkthroughs to obtain a SOC 2 Type 2 report simultaneously with an ISO 27001 certification.
Because SOC 2 is more common within North America, achieving compliance against both frameworks is a valuable way to differentiate your organization in the U.S. market.
BARR Certifications—the certification body of BARR Advisory that issues ISO 27001 certifications—is accredited by the American National Standards Institute (ANSI) National Accreditation Board (ANAB), which is a member of the IAF, the same global organization that oversees the United Kingdom Accreditation Service (UKAS).
Because ANAB’s accreditation is recognized internationally and adheres to the same rigorous standards as other leading accreditation bodies like UKAS, organizations in the U.K. and around the world can achieve ISO 27001 certification with ANAB-accredited auditors such as BARR. This flexibility allows U.K.-based organizations to choose certification bodies based on their specific needs, without being restricted solely to UKAS-accredited firms.
For fast-growing CSPs, it makes sense to prioritize working with a firm like BARR Certifications that specializes in simplifying complex auditing processes with a proven, coordinated approach.
BARR can also help you grow and mature your compliance program with several extensions to the ISO 27001 framework, including:
BARR is also equipped to help organizations get started on the path toward ISO 42001 certification. Released in late 2023, ISO 42001 is designed to assess the security, safety, privacy, fairness, transparency, and data quality of artificial intelligence (AI) systems.
CSPs aiming to do business with U.S. government agencies must comply with FedRAMP, a cloud security framework that establishes strict data security and risk management standards related to access rights, vulnerability scanning, system monitoring, incident reporting, and more.
Achieving FedRAMP authorization is a detailed process that requires careful planning and the assistance of a qualified Third-Party Assessment Organization (3PAO). This opens the door for your company to compete for government business and can give you a competitive advantage over other cloud service providers when bidding as part of a government RFP process.
In 2025, BARR will be accredited as a 3PAO, allowing us to help organizations achieve full FedRAMP authorization.
Another U.S. federal requirement that can apply to CSPs headquartered internationally is the Health Insurance Portability and Accountability Act (HIPAA). Organizations that operate outside the U.S. that process, store, and interact with protected health information (PHI) belonging to American patients may be subject to HIPAA security requirements, which include administrative, physical, and technical safeguards for protecting electronic PHI (ePHI):
Unlike standards like ISO 27001 and FedRAMP, there is no formal certification or authorization for HIPAA compliance. However, BARR’s attest services team can assess your cybersecurity program against the HIPAA Security Rule and provide a formal report on their conclusions, either as part of a SOC 2 examination or as a standalone report. Many trust services criteria used in SOC 2 reporting align with HIPAA Security Rule requirements, allowing us to leverage our coordinated audit approach to save you time and resources.
Government assessments and SOC 2 reports aren’t the only options for organizations to demonstrate robust risk management practices to U.S. customers. Other frameworks that are common in North America include:
Our experts can help you map out a plan to achieve compliance with frameworks like these while accelerating your organization’s growth in the U.S. and beyond. Schedule a call with us today to get started.