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What is ISO 27001 Certification?

Cybercriminals thrive on weak security. ISO/IEC 27001 certification is designed to ensure your organization isn’t one of their easy targets. Hackers, scammers, financial criminals, and other denizens of the dark web would all prefer your company not to be ISO 27001 certified.

To understand why, we’ll define what ISO/IEC 27001 certification is exactly and how it protects your organization from these threats below.

What is ISO 27001?

ISO/IEC 27001:2022 is a globally recognized security framework created by the International Organization for Standardization (ISO) in partnership with the International Electrotechnical Commission (IEC). It assesses a company’s ability to protect its information assets by requiring them to build, maintain, and continuously improve an information security management system (ISMS).

To achieve certification, companies must complete an independent audit to verify that they comply with ISO/IEC 27001’s rigorous requirements.

Pursuing ISO/IEC 27001 certification holds a lot of benefits for growing businesses. Beyond reducing the likelihood of a costly breach, it can build trust with your customers, inspire confidence among investors, and give you a competitive edge in the market.

If you’re interested in what it takes to get certified, you’re in the right place.

The video below offers an overview of what ISO 27001 certification is, plus the benefits and requirements of compliance. We'll dive deeper into these topics as well as the process and costs of getting certified in the article.

What does it mean to be ISO 27001 certified?

When it comes to IT security, ISO/IEC 27001:2022 certification is one of the most respected standards internationally.

ISO 27001’s full name is “ISO/IEC 27001:2017 Information technology — Security techniques — Information security management systems — Requirements.” 

ISO/IEC 27001 was first established in 2005 and has since been revised in 2013, 2017, and 2022. The 2022 version streamlined Annex A controls from 114 to 93, and organized them into four categories: Organizational, People, Physical, and Technological.

An ISMS is more than just the hardware and software you use to keep information safe. It’s an entire set of rules that govern how you use information. This includes how you store and retrieve it, how you assess and mitigate risks, and how you continuously improve data security.

If an independent, accredited auditor affirms that your company’s ISMS meets the standards, your company achieves ISO 27001 certification.

Certification comes with a whole host of perks. 

  • You may gain access to new clients who otherwise wouldn’t work with you.
  • You demonstrate to customers that you take data security seriously.
  • ISO 27001 can help support compliance with regulations like GDPR or HIPAA (although certification alone does not equal full legal compliance).

Most importantly, though, you’ll have a framework that your team and all of your partners can trust.

What is the purpose of ISO 27001 certification?

ISO created ISO/IEC 27001 to counter increasingly sophisticated attacks on information systems and to establish a comprehensive benchmark for information security management.

The need has only grown. According to IBM’s 2024 Cost of a Data Breach Report, the global average cost of a data breach is now $4.88 million, and global ransomware attacks increased by more than 20% in 2024.

The rise of information security regulations also fueled the adoption of ISO 27001. Laws like the Health Insurance Portability and Accountability Act (HIPAA) in the United States and the General Data Protection Regulation (GDPR) in the European Union impose strict penalties for preventable data breaches. In July 2019, British Airways was fined £183 million for failing to prevent a phishing attack that used a fake version of its website. Marriott Hotels was fined £100 million just two days later after hackers stole sensitive data from improperly secured guest records.

These rising costs and risks explain why more organizations turn to ISO/IEC 27001 as a proactive solution to protect sensitive data.

Is ISO 27001 certification mandatory?

No, it’s not. But following the law is. 

While the government won’t require a company to undergo an ISO 27001 audit, it’s often the easiest way to comply with laws like GDPR.

If your business model relies on providing IT services to other companies, you might find that many clients don’t want to work with you without some kind of security certification. That’s usually either ISO 27001 or SOC 2.

Let's take a closer look at the reasons to pursue ISO 27001 certification.

Why get ISO 27001 certification?

Here are several reasons why organizations should consider getting ISO 27001 certified:

1. Reduce entry barriers into new markets, particularly internationally

ISO 27001 is recognized worldwide as a gold standard for information security management. By obtaining this certification, organizations can position themselves as secure and trustworthy, especially when expanding into international markets where potential customers may require such assurances. Many global companies and partners expect their vendors to comply with international standards, so being ISO 27001 certified can significantly reduce entry barriers into new markets.

2. Win deals against non-ISO 27001 compliant competitors

In industries where security is a top priority, being ISO 27001 certified can make the difference between winning and losing a deal. Prospects often view ISO 27001 as a symbol of excellence in security practices. When competing against organizations that don’t have this certification, being able to prove adherence to the highest security standards makes you a more attractive and reliable choice, giving your organization an edge.

3. Speed up the sales cycle by removing security and compliance objections

During sales processes, customers frequently raise concerns about security and compliance risks. ISO 27001 certification can eliminate these objections early in the process by demonstrating that your organization has already implemented rigorous controls to protect sensitive information. This can lead to faster sales cycles, as security concerns are no longer a blocker and allow your sales team to highlight other areas like value and price to close deals.

4. Sell upmarket by gaining the trust of larger enterprises

Larger enterprises often have stringent security requirements, and many mandate ISO 27001 certification as a prerequisite for doing business. Having the certification signals that your company meets the high security standards that large companies expect, thereby enabling your organization to move upmarket and engage with enterprise clients.

5. Strengthen customer trust by proving that your service is secure

In an age where data breaches are frequent, customers need reassurance that their information will be handled securely. ISO 27001 certification proves that your organization has adopted industry-leading practices to safeguard data. This fosters trust and confidence among existing and potential customers, showing that you take security seriously, which can lead to increased customer loyalty and longer-term relationships.

6. Improve investor and partner confidence

Like customers, investors and business partners are concerned about the risks associated with data breaches and compliance failures, which can impact a company's financial performance and reputation. ISO 27001 certification provides tangible proof that your organization is proactively managing these risks. This assurance can boost investor confidence in your ability to handle sensitive information securely, and it can strengthen partnerships by showing that you are a responsible and trustworthy collaborator.

7. Build a company culture of security and compliance

The process of implementing ISO 27001 fosters a culture of security awareness across your organization. It encourages employees to adopt security best practices in their daily work and ensures that compliance becomes part of the company’s core values. This cultural shift leads to better overall security posture and reduces the likelihood of internal threats or human errors that can result in security breaches.

8. Gain expert third-party validation

Achieving ISO 27001 certification requires an external audit from accredited experts, which provides an objective assessment of your organization's security controls and policies. This third-party evaluation not only ensures that your security practices meet the necessary standards and offers insights into areas for improvement — it also adds credibility to your security claims and validates that your systems are effective.

Many companies that understand the importance of ISO 27001 still don’t get certified, fearing the complexity of the ISO 27001 certification process

If you’re still on the fence, keep reading to learn exactly what ISO certification for information security entails.

The ISO 27001 certification process

Your path to ISO 27001 certification typically involves these steps:

1. Establish an ISO 27001 team

Appoint members of your staff to take charge of the certification process. 

The ISO 27001 team will determine the scope of your ISMS, establish processes for documenting it, get support from senior management, and work directly with the auditor, among other duties.

2. Scope your ISMS

Each business is unique and houses different types of data. Before building your ISMS, you’ll need to determine exactly what kind of information you need to protect.

For some companies, the scope of their ISMS includes their entire organization. For others, it induces only a specific department or system. 

Your team will need to discuss what you want to be represented in the scope statement of your ISO 27001 certificate.

Start by asking yourself: “What service, product, or platform are our customers most interested in seeing as part of our ISO 27001 certificate?”

3. Complete a risk assessment and implement controls

ISO 27001 requires companies to document an active, ongoing effort to identify and mitigate threats. 

Conduct an ISO 27001 risk assessment to identify potential threats to your information security. Judge the likelihood of each risk and the severity of its consequences.

With a completed risk assessment in hand, it’s time to document what you’re doing about each risk. Expand your ISMS to include mitigation strategies for each risk your analysis uncovers.

4. Document and collect evidence

The more work you do to shore up your documentation before the audit, the better your chances of achieving certification.

Documentation can be grueling work without the help of automation, so it’s better to get started early. Undergo an internal audit as a dress rehearsal for the real thing.

During this phase, your ISO 27001 team should be educating your general staff about information security, your ISMS, and ISO 27001 certification in particular. By having your whole staff pull together, you greatly reduce the likelihood of leaving unaddressed gaps in your ISMS.

5. Complete a Stage 1 audit

It’s been about four months at this point, and you’re finally ready to invite an external auditor to review your ISMS. Your ISO 27001 auditor will come from a certification body with ISO accreditation.

The official audit process has two stages. 

6. Implement Stage 1 audit recommendations

Fix any aspects of your ISMS that the auditor marked for improvement. If you’re missing any information security controls outright, put them into practice and document them thoroughly. 

7. Undergo a Stage 2 audit

This time your auditor will examine how your information security functions. Their goal is to see if you’re practicing what you preach regarding your ISMS. Well-documented processes are worthless if they aren’t being followed.

After a successful Stage 2 audit, you’ll receive your ISO 27001 certification, which is valid for three years. 

8. Maintain ISO 27001 compliance

After getting ISO 27001 certification, make a plan for regular internal audits. ISO 27001 requires organizations to conduct a “surveillance audit” each year to ensure their commitment to a compliant ISMS hasn’t lapsed.

At the end of the third year, you can complete a recertification audit to maintain your ISO 27001 certification for another three years. 

Each company’s path to ISO 27001 certification can vary slightly, but this process generally takes 6–12 months depending on company size, resources, and complexity of operations.

How long does it take to get ISO 27001 certified?

It depends on the size of your company and the complexity of the data you maintain. 

A small-to-medium-sized business can expect to be audit-ready in an average of four months, then through the audit process in six months. Larger organizations might require a year or more.

Those four months of audit preparation typically involve scoping your ISMS, conducting risk assessments and gap analyses, designing and implementing controls, training staff, and preparing documentation. 

The six-month certification audit is broken down into two stages. During Stage 1 audits, the auditor reviews ISMS documentation to make sure policies and procedures are designed properly. They may also make suggestions for how the organization can improve its ISMS to make it more secure. 

During a Stage 2 audit, the auditor reviews business processes and controls to ensure compliance with ISO 27001’s ISMS and Annex A requirements

Recommended reading

How Long Does ISO 27001 Certification Take?

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How much does ISO 27001 certification cost?

Like the timeline, the cost of an ISO 27001 audit can vary widely depending on the size and scope of your company and your information security management system.

On average:

  • Up to $40,000 for pre-certification preparation (internal resources, tools, consultants).
  • $10,000 for the certification audit itself.
  • $15,000 annually for surveillance audits and maintenance.

The biggest cost associated with ISO 27001 compliance is that you’ll have to take employees off other projects or hire new ones. You’ll also need to pay for security training materials and the audit itself.

A faster, easier way to get ISO 27001 certified

ISO 27001 may seem daunting at first, but the benefits significantly outweigh the effort. In fact, certification often saves money by reducing breach risks and shortening sales cycles.

That said, if you found anything in this article overwhelming, we have good news. 

Modern compliance automation platforms can reduce certification prep time by 40% and cut costs by 25–50% by streamlining evidence collection, monitoring, and audit readiness.

Secureframe’s compliance automation platform and team of security experts can help you get certified faster and with fewer headaches. Schedule a demo to learn more.

FAQs

What does ISO stand for?

ISO stands for “International Organization for Standardization.” Founded in 1946, ISO unites national standardization boards from 166 countries.

What is ISO 27001 certification?

ISO/IEC 27001:2022 is the international standard for information security. Certification is issued by an accredited body after an independent audit confirms that an organization’s ISMS meets requirements.

Why is ISO 27001 certification important?

It demonstrates that your organization manages information securely and can be trusted by customers, partners, and regulators.

What is the difference between ISO certification body and accreditation body?

A certification body conducts ISO audits and grants certifications. Accreditation bodies under the International Accreditation Forum (IAF) evaluate and certify those certification bodies.

How do I get ISO 27001 certified?

Organizations must complete a Stage 1 and Stage 2 audit by an accredited certification body.

How much does ISO 27001 certification cost?

The cost of an ISO 27001 certification depends on the size and scope of your company and your information security management system. On average, companies pay $40k for preparation, $10k for the certification audit, and $15k annually for surveillance audits.

How long does ISO 27001 certification take?

Typically 6–12 months, depending on company size and ISMS scope.

When must organizations migrate to ISO/IEC 27001:2022?

Companies certified under the 2013 version must transition to the 2022 revision by October 31, 2025.