HIPAA, CMMC, and ISO 27001—these security frameworks and certifications represent a long list of requirements and regulations, making compliance difficult for many companies. Being ISO 27001 certified will demonstrate your dedication to information security and help differentiate you from competitors while drawing clients who prioritize protecting their data.
What is ISO 27001?
At a time when hackers, scammers, and dark web lurkers pose such a significant threat, it has never been more critical to protect sensitive data. Enter the ISO 27001 framework. It evaluates whether businesses have created an effective information security management system capable of keeping sensitive information safe. When an independent auditor confirms this claim, certification is granted.
ISO 27001's framework covers all of a company's processes and information assets - physical as well as digital - such as paper documents. This ensures that wherever information is stored or shared, its security remains intact.
ISO 27001 stands out from other security frameworks by not focusing on specific technical controls; instead, it establishes requirements for an Information Security Management System (ISMS) through mandatory clauses and an annex containing 114 possible controls that define its requirements. Not all certified companies will implement every possible control in their systems based on individual risk analysis; instead, they should select and implement only those controls that best address specific security risks in their environment.
What are the regulations of ISO 27001?
ISO 27001 regulations aim to help businesses safeguard sensitive information by implementing and auditing an Information Security Management System, which adheres to three principles - Confidentiality, Integrity, and Availability (known as the C-I-A triad). While this standard may prove invaluable for companies, its benefits also extend beyond them into helping individuals secure employment as security personnel.
The standard is divided into two sections, with the first section consisting of 11 clauses (0 to 10) and the second providing guidelines for 93 security controls. Clauses 0-3, however, present an overview of the ISO framework as well as leadership strategies for creating an ISMS from an operations management viewpoint.
The standard stresses the importance of an ISMS that includes all areas of business rather than only IT departments, to avoid unwise spending on defenses and boost the overall effectiveness of security measures. Additionally, this approach facilitates holistic risk analysis leading to less downtime due to security incidents.
How are these international standards set?
Developing an international standard is like creating a masterpiece: many individuals collaborate to produce something greater than its individual parts. When needed, an ISO member requests its creation. Once requested, an expert group meets and works through a consensus process on its development.
Members from within the industry, consumer groups, and experts from other fields will gather together to discuss and draft a standard's scope and key definitions before working out its details. Once an agreement is reached, an outline draft version is shared with all other members for feedback and approval.
Is the ISO 27001 certification mandatory in the USA?
While ISO 27001 is not mandatory in the USA, more and more companies are becoming certified. IN 2006, less than 6,000 companies were ISO 27001 certified. That number grew to nearly 45,000 companies by 2020, according to an ISO survey of Management System Standard Certifications.
ISO 27001 certification is more popular among USA businesses, as well. This might seem a bit surprising since ISO 27001 was developed based on international standards.
4 Key Benefits of Being ISO 27001 Certified
When you’re considering becoming ISO 27001 certified, you should have a solid understanding of what you will gain with this certification. There are many benefits of ISO 270001. Let’s look at four of the main ones below.
Improved Customer Confidence
ISO 27001 certification demonstrates your organization's dedication to developing and maintaining an effective Information Security Management System (ISMS), showing customers, partners, and other stakeholders that you take their data security seriously.
Accreditation will enable your business to identify and assess risks, as well as establish procedures for mitigating them. Your team members can review these policies, which will lower the chance that sensitive data falls into unintended hands while creating positive customer experiences that foster trust between you and customers.
At its core, certification can provide your business with a distinct advantage over competitors that do not possess comparable credentials and help build lasting customer relationships. In addition, certification demonstrates your business is trustworthy and secure, which may open doors to new opportunities. Plus, compliance with all relevant laws and contractual requirements minimizes fines or other financial penalties.
Reduced Risk of Breaches
Companies often invest in ISO 27001 because they want to avoid the costly consequences associated with data breaches and security incidents, such as theft. By preventing these events from happening, businesses are better positioned both financially and in terms of maintaining trustworthiness among their client base.
An ISO 27001-compliant information security management system also makes a business much more attractive as clients, partners, and other third parties can see proof of effective information security practices - creating more business opportunities and making them much more likely to do business with the firm.
An organization with an ISO 27001-compliant ISMS can also lower its legal risk by following stringent procedures for breach notification and meeting regulatory requirements in different countries and regions, which helps them limit potential fines they could owe for violating data protection laws; this benefit is particularly significant for financial institutions and insurance providers that collect customer information.
Better Business Continuity Planning
Businesses reliant upon proprietary knowledge, formulas, or recipes will find ISO 27001 invaluable. Examples include pharmaceutical companies looking to protect their secret ingredients or food manufacturers wanting to safeguard special recipes.
ISO 27001 mandates business continuity planning as one of its essential requirements, to ensure mission-critical processes continue running during any disruption to normal operations.
A BCM plan involves identifying and assessing the most critical business processes, and their impacts in case of disruptions or interruptions, and setting maximum tolerable periods and recovery time objectives for them. Furthermore, it details any necessary resources such as laptops, alternate warehouse spaces, and mobile phones needed for effective response to disruptive events.
Once a business continuity plan has been developed, it must be tested regularly to ensure it satisfies its intended goals. This can be accomplished through simulating disruptive scenarios and testing how quickly recovery occurs from such situations.
With high-profile data breaches on the rise, ISO 27001 certification can help build trust with customers and stakeholders by showing you have in place processes to safeguard their information and intellectual property; something which could make you stand out in an increasingly crowded marketplace.
ISO 27001 is an internationally recognized standard that provides you with access to an abundance of opportunities for growth in business. By showing other organizations that your firm can be trusted with their sensitive data and intellectual property, ISO 27001 speeds up sales processes while shortening time-to-market cycles.
Compliance requirements related to legal, regulatory, and contractual obligations can also be fulfilled using ISMSs, helping your company avoid potential trouble and potentially costly fines. A surveillance audit by an ISO-accredited Body verifies whether or not your ISMS adheres to standards laid out by ISO, showing your proof of compliance to others.
How do I hit all the ISO 27001 standards?
If your business deals with sensitive data, ISO 27001 certification should be a top priority. Not only will it demonstrate to clients that you care for and adhere to best practices regarding data storage, but it will also prevent costly, inconvenient (and sometimes embarrassing) data breaches which can destroy reputations while costing millions in lost revenue.
No matter whether you opt for in-house implementation of ISO 27001 or outsourcing it, several steps will need to be taken in order to comply. These include creating and documenting your ISMS, conducting internal audits, performing gap analyses, and passing certification audits - these tasks may seem daunting but with an ISO 27001 gap analysis checklist you can break them down into manageable chunks.
Once all necessary steps have been completed, you will be ready for an ISO 27001 audit. Depending on your preference, an independent third party or internal auditor can conduct it for you. This audit will focus on your documentation and controls; review them and record a Statement of Applicability which lists out each control in ISO 27001 standard as it applies or doesn't to you and why this doesn't apply - while recording reasons if any does not apply directly.
Who is completing ISO 27001 audits?
Becoming ISO 27001 certified may take time, but its rewards can last long-term for your organization. Along with showing commitment to information security, these standards also ensure your employees receive proper training and processes are documented effectively.
Stage 1 of an ISO certification audit involves reviewing documents provided and conducting an examination of your ISMS. An auditor will check that all provided documentation meets ISO standards while an ISMS examination examiner assesses its effectiveness while verifying compliance with requirements set by ISO standard requirements.
Once your initial certification audit is complete, regular internal ISO 27001 audits and periodic external audits will need to be carried out to maintain compliance. You'll also need to perform a recertification audit (or Stage 2) every three years - similar to an initial audit but focused more closely on nonconformities discovered during prior audits or OFIs - providing your auditor with a Corrective Action Plan and Evidence of Correction report within 14 days of receiving an ISO 27001 nonconformance.
Can I complete a self-assessment?
Conducting an assessment of your information security measures is an integral step toward ISO 27001 certification, providing invaluable benchmark data against an international standard that will give your ISMS more credibility when being certified.
This process involves evaluating your company's existing policies and procedures against ISO 27001 standards to identify areas for improvement. Utilizing checklists such as risk evaluation checklists, gap analysis checklists or surveillance audit checklists can assist with making necessary modifications to ensure certification is achieved.
Once your ISMS is in place, the next step should be registering it for ISO 27001 certification with an accredited certification body. This process includes conducting an in-depth audit to make sure it complies with ISO 27001 standards.
As your company prepares to undergo its certification audit, all its leaders must be on board. ISO 27001 mandates top management be actively involved with and provide approvals during the process, while also mandating leadership to commit to an ISMS implementation plan and assign responsibilities accordingly.
Steps to Make Sure I Am ISO 27001 Compliant
Becoming ISO 27001 compliant can be challenging; the process takes time, planning, and execution to become compliant. Therefore, working with experienced consultants who can guide your efforts toward and through compliance is key in order to succeed.
Organizations looking to get certified must create an ISMS, conduct a compliance risk assessment, create policies and procedures, as well as undergo external audits. Although certification processes can be costly, there are ways to minimize costs.
1. Identify Your Needs
ISO 27001 certification can help distinguish your business and ensure the protection of customers' personal information and commercially sensitive data, in addition to meeting legal compliance requirements. This certification can also assist with your overall IT risk management strategy.
Establishing an ISMS requires creating policies and procedures specific to your organization, documented within ISO 27001's ten management system clauses as well as Annex A's additional 114 controls. Organizations don't need to implement all 114 controls; rather they should identify which are most applicable according to risks identified during their risk analysis process.
Implementation of these practices requires collaboration across departments. You'll need to identify key roles and responsibilities, document them, and monitor compliance to ensure all follow these practices.
2. Hire an Expert
Given the current state of cybersecurity in business and its associated liability payouts from data breaches, companies require a reliable framework to protect their information systems - ISO 27001 is often chosen.
Hiring an expert, such as RiskRecon by Mastercard, to assist with ISO 27001 certification can be an excellent move. Though this might cost more upfront, their experience could save both time and money during the pre-certification stage - thus justifying any investment made upfront.
Before selecting an expert, be sure to obtain references from their previous clients to gain insight into how well they work with their clientele and communicate. Also, take into consideration whether their communication style complements yours to ensure an effective working relationship and reduce frustration.
Acquiring ISO 27001 certification can give your business a significant competitive edge, particularly in international markets. This proves that your information systems can protect financial, intellectual property, and third-party data securely.
To achieve certification, an ISMS (information security management system) that meets ISO standards must be put in place. This includes performing a gap analysis and creating documents and processes to meet them; conducting risk analyses; training employees about its implementation; as well as regularly monitoring and reviewing it.
Implementation can take time. To save both time and money on this endeavor, working with an experienced consultant who can lead you through the process and hasten your journey toward certification will be immensely helpful in mitigating the risk of failure and costly mistakes.
Once you've established policies and implemented an information security management system (ISMS) as per ISO 27001 standards, the next step should be auditing. Audits provide a crucial check against all work that falls short.
As part of your ISO 27001 audit process, Stage 1 audit involves an external auditor from an accredited certification body examining your ISMS documentation to see if it satisfies ISO 27001 requirements.
In the second phase, an independent certification auditor will inspect how your ISMS functions daily and examine your controls to ensure their effectiveness. If no major nonconformities arise during this review period, your company will receive an ISO 27001 certificate.
Given the increased threat posed by hackers, scammers, and financial criminals who aim to access your data without authorization, having an effective security posture for your business is paramount. One way ISO 27001 certification demonstrates this commitment.
ISO 27001 certification is an internationally recognized recognition that shows customers and partners you adhere to global best practices. Furthermore, it helps meet other standards such as GDPR and HIPAA legislation, while decreasing costs related to preventable data breaches.
Acquiring ISO 27001 certification can be a complex and time-consuming task, and requires the involvement of your organization's leadership. Hiring external consultants may help guide you toward compliance, or you could use GRC tools.
What happens if I’m not in ISO 27001 compliance?
No matter the size or nature of your enterprise, prioritizing information security has never been more essential. With so much data transferring digitally around the world, ensuring strong security practices not only helps win new clients for your business but can accelerate sales cycles, reduce time to market, and even provide you with an edge against your rivals.
Acquiring ISO 27001 compliance is an ideal way to demonstrate that you have the policies, procedures, people, documentation, and controls needed to protect your information systems' Confidentiality, Integrity, and Availability (CIA). Furthermore, ISO 27001 serves as a basis for meeting other regulatory or contractual obligations, such as those mandated by Europe's General Data Protection Regulation (GDPR).
If your organization is not yet compliant, one way to start is by conducting a risk analysis and determining effective mitigation techniques. A comprehensive list of possible controls can be found in ISO 27002 which gives an outline of each control type allowing you to select those that would work best in your particular organization.
Customers increasingly expect their suppliers to meet ISO 27001 certification. It may even be essential when pitching new business to prospective clients or bidders; failing to do so could prove costly for your firm.
What are the Domains of ISO 27001?
The Standard sets out 114 controls that must be implemented for an organization to remain compliant, divided among four domains (organizational, people, physical, and technological). While it's impossible for every control to be implemented successfully, businesses must demonstrate they have done everything within their power to reduce security risks and eliminate potential vulnerabilities from their operations.
Each domain is covered by specific control objectives and related policies that provide oversight and direction, with information security policy as the cornerstone for everything else. This policy sets an important precedent and sets expectations moving forward.
The next area to focus on is how a company handles data. This encompasses everything from how employees handle sensitive information to their relationship with suppliers, while physical and environmental controls deal with how buildings and equipment remain secure, such as monitoring alarm systems or installing monitoring solutions. All three domains fall under the IT department's responsibility but each will require teams of cross-departmental specialists collaborating closely together.
How Much Does the ISO 27001 Certification Cost?
Costs associated with becoming ISO 27001 compliant vary depending on your industry and the data to protect; for small businesses, this could range between $5,000 and $100,000 including preparation and certification audit costs; larger organizations could incur more substantial expenses in terms of implementation and ongoing management of an ISMS system.
Productivity costs can be significant, as your team's focus shifts toward ensuring that appropriate controls and documentation are in place and up-to-date. In addition, conducting regular internal audits of your ISMS requires taking time away from other projects to perform.
Depending on how unfamiliar your team members are with the ISO 27001 framework, spending money on training may also be required for optimal implementation. Not only is training required by ISO 27001 requirements; but it's also vital in creating a culture in which everyone on your team prioritizes data security.
Is ISO 27001 Certification Worth It?
Attaining ISO compliance can give your business an edge in the marketplace. Many larger companies require their vendors to comply with specific frameworks, and this certification makes qualifying easier. Furthermore, being ISO 27001 compliant may speed up the security review process with potential customers.
While the costs to become ISO 27001 certified may seem significant, it's essential to keep in mind that they pale in comparison to the damage a data breach could do. Being ISO 27001 certified provides your business access to new clients who value compliance as well as keeping you safe from cyber-attacks and regulatory fines - it certainly deserves to be part of your budget.
How can RiskRecon by Mastercard help me?
If you want to become ISO 27001 certified and increase your cybersecurity, you want to work with the right company. RiskRecon offers a 30-day trial and the best team to ensure you get excellent protection against cyber-attacks of all kinds. Check out our 30-day trial here!