There are a lot of people out there who would like your company not to be ISO 27001 certified.

Hackers, for one. Also scammers, financial criminals, and other denizens of the dark web.

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

What is ISO 27001?

ISO 27001 is a security framework created by the International Organization for Standardization that assesses a company’s ability to keep its data safe. To achieve certification, companies must complete an audit to verify that they comply with ISO 27001’s rigorous standards.

Pursuing ISO 27001 certification holds a lot of benefits for growing businesses — aside from keeping your data safe from a breach. It can also build trust with your customers, inspire confidence in your shareholders, and give you a powerful competitive advantage.

If you’re interested in what it takes to get ISO 27001 certified, you’ve come to 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 27001 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.” 

The standard was established in 2005. It was revised in 2013 and 2017 through a partnership with the International Electrotechnical Commission (IEC), another standards organization.

The ISO 27001 framework determines whether an organization has built an information security management system (ISMS) capable of protecting sensitive data.

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 auditor affirms that your company’s ISMS meets the standards, you are ISO 27001 certified.

Certification comes with a whole host of perks. 

You might win access to clients who’d be hesitant to work with you otherwise. You’ll demonstrate to all your customers that you take their personal information seriously. ISO 27001 can also help your organization comply with other regulations like GDPR (although implementing ISO doesn't mean you're inherently GDPR compliant).

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

What is the purpose of ISO 27001 certification?

ISO created ISO 27001 to counter increasingly sophisticated attacks against information systems. To protect valuable private data, companies needed to hold themselves to a comprehensive set of rigorous security standards.

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.

The price for non-compliance can be steep. 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.

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 as an objection

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. Get an expert third-party opinion on your security controls and policies

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 quest for ISO 27001 certification will take you through the following 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. Some may choose to hire a consultant or opt for a penetration test over vulnerability scanning. But this overview should give you an idea of the steps to ISO 27001 certification and why the process can take up to 12 months.

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. 

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.

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.

In total, an average company can expect to pay up to $40k for pre-certification preparation, $10k for the certification audit itself, and $15,000 per year for maintenance and surveillance audits after achieving certification.

A faster, easier way to get ISO 27001 certified

ISO 27001 may seem daunting at first, but the benefits significantly outweigh the effort. 

When you consider the liability payouts that can result from data breaches - not to mention the cost of damage control - there's a good chance the certification process will save you money and time.

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

Secureframe’s compliance automation platform and team of security compliance experts can get you ready for your own ISO 27001 certification faster and with fewer headaches. Schedule a demo to learn more.