Security Roles by Business Size and Industry
The structure and expectations of ISO/CISO/CSO roles vary significantly depending on the industry, organization size, and maturity of the security program.
1. Differences Between ISO, CISO, and CSO (High-Level)
| Role | Primary Focus | Typical Scope | Reports To |
|---|---|---|---|
| ISO (Information Security Officer) | Information security program execution | Policies, compliance, risk management | CIO, CTO, or COO |
| CISO (Chief Information Security Officer) | Enterprise security strategy & leadership | Cybersecurity, risk, compliance, security architecture | CEO, COO, CIO, or Board |
| CSO (Chief Security Officer) | Physical + cyber + corporate security | Physical security, crisis mgmt, investigations, cybersecurity | CEO, COO |
- ISO = tactical + operational
- CISO = strategic + leadership
- CSO = enterprise-wide security including physical security
In small orgs, the ISO CISO (combined). In large orgs, the roles are separate and more specialized.
2. How Organization Size Affects Security Leadership Roles
A. Small Businesses (1500 employees)
Typical structure:
- No CISO
- Instead they have an ISO, IT Security Manager, or sometimes the IT Director doubles as ISO
- Security is often part of IT budget and responsibilities
Why the ISO sits within IT:
- Limited funding
- No dedicated security team
- Business sees cybersecurity as a technical function
- Compliance requirements are lighter
Common reporting line: ISO IT Manager/Director CIO (if exists)
Security maturity: low-to-medium Common in: startups, local businesses, small non-profits
Yes in smaller orgs, ISO is usually part of IT. Especially if there is no standalone security department.
B. Mid-Sized Organizations (5005,000 employees)
Typical structure:
- Dedicated Information Security department exists
- One role (CISO or Director of Security) starts to emerge
- ISO usually moves out of IT, reporting closer to executive leadership
Common reporting lines: CISO CIO or COO ISO CISO
Security maturity: medium-high Common in: healthcare, finance, manufacturing, tech scale-ups
Key shift: Security begins to separate from IT due to compliance pressure (ISO 27001, HIPAA, SOX, GDPR).
C. Large Enterprises (5,000+ employees)
Typical structure:
- Full executive-level CISO
- ISO(s) may exist inside business units, regions, or subsidiaries
- CSO may sit above both CISO + physical security
- High specialization (GRC, SOC, threat intel, appsec, IR teams)
Common reporting lines: CISO CEO, COO, or Board (less commonly CIO due to conflict-of-interest concerns)
Security maturity: high
Common in: global banks, governments, Fortune 100 companies
Key trend: CISO becomes a strategic business executive, not an IT manager.
3. How Industry Affects Security Leadership Roles
Heavily Regulated Industries
- Financial Services / Banking
- Healthcare
- Government / Defense
- Energy / Utilities
- Telecom
Characteristics:
- This is where CISOs have the highest authority
- Security often reports to CEO, CRO, or Risk division (not IT)
- Requirements from regulators enforce independence from IT
Roles are more formal, governance-driven, and risk-based.
Lightly Regulated Industries
- Retail
- Hospitality
- Manufacturing (non-critical)
- Creative industries
- Small tech startups
Characteristics:
- CISO often reports to CIO
- ISO or IT Security Manager may also be head of IT security
- Security budgets smaller
- Controls lighter
4. Summary: Is It True the ISO Is Part of IT in Smaller Orgs?
Yes very common. The ISO (or combined role with IT Manager) often sits inside IT due to:
- No standalone security team
- Security viewed as a technical function
- Budget constraints
- Few regulatory pressures
- Security maturity still developing
Only when an organization grows (or becomes regulated) does the ISO or CISO break away from IT and become an independent function.