Breaking down ISO 27001 certification costs

ISO 27001 is the global gold standard for building an Information Security Management System (ISMS). Maintained by the International Organization for Standardization, the framework includes many policies, procedures, and security controls. Because of this complexity, fully ISO-compliant systems often have high implementation costs.

Read on to discover how much you can expect to spend on ISO 27001 certification costs. We will explore:

• Factors driving ISO 27001 costs. Learn about elements that influence implementation costs, including factors like company size and the use of external consultants.
• A full breakdown of ISO 27001 costs. Consult our financial breakdown, with expense categories for preparation, implementation, and maintenance phases. This section will help you plan and budget for your ISO 27001 implementation.
• Company size and cost implications. This crucial section will help you understand how the size of your company affects certification costs. This should provide a ballpark figure for budgeting ISO 27001 projects.

Factors influencing the cost of ISO 27001 certification

The average ISO 27001 cost varies between companies and economic sectors. However, some common factors always influence how much organizations need to spend.

Critical things to consider include:

• Company size. Larger organizations tend to operate more complex IT systems. The cost of achieving security compliance rises with the number of devices, data storage centers, and network users.
• Number of locations. Companies with many locations usually incur a higher ISO 27001 cost. Compliance teams need to secure all physical locations and remote work settings. They need to ensure consistent policy delivery to all locations. They must audit every location thoroughly. an expensive process.
• ISMS maturity. Companies may already have a mature ISMS with a robust security posture, in which case complying with ISO 27001 standards will be much easier.
• The nature of information processing. Organizations that process sensitive data must spend more on security controls and policies. ISO 27001 certification is risk-based. As information security risks rise, the ISO 27001 cost will also increase.
• Internal skills. Companies with highly skilled workforces tend to spend less on ISO 27001 compliance. They can rely on internal cyber security or risk assessment capacity. There is less of a need to bring in external audit expertise.
• ISMS scope. Organizations have different strategic goals. Some may want to build ISMS capacity to handle future growth or adapt to cloud transformations. The scope of information security management plays a critical role in determining the cost of ISO 27001 certification.
• Leadership. Companies with executives committed to security tend to record lower ISO 27001 certification costs. That is because they plan more efficiently, understand their responsibilities, and commission the right external expertise during the certification process.

What is the typical cost of ISO 27001 certification?

It is not possible to provide a precise ISO 27001 certification cost for every organization. However, average costs should provide a solid guide for budgetary planning.

The certification audit alone carries an average cost of over $15,000. Certification audit bodies tend to charge around $1,500 per day. Small businesses with simple information security environments can expect to spend $5,000-$10,000 for a 3-6 day certification audit. However, larger companies often spend over $50,000.

However, certification audits are a minor component of the overall cost of ISO 2700. Organizations need to invest in preparing their ISMS. Implementing ISO 27001 projects also has costs. The need for continuous compliance also means that ISO 27001 has significant maintenance costs.

When you factor in every element, the cost of ISO 27001 certification over the 3-year life cycle regularly exceeds $100,000.

Preparation costs

Preparation for ISO 27001 certification costs companies an average of $40,000, but many factors influence this total amount.

For instance, companies with an immature Information Security Management System will face much higher preparation costs.

In this case, the organization needs to:

• Create a library of information security policies
• Train staff to comply with ISO 27001 standards
• Apply access controls to sensitive information
• Encrypt stored data and data in transit
• Implement physical security controls
• Develop risk assessment systems and create a risk treatment plan
• Carry out or commission an internal audit
• Create continuous monitoring systems and schedule regular surveillance audits
  
  

All of these internal tasks require time and money. However, the largest portion of preparation costs often involves hiring external expertise. There are three main ways an independent consultant can help with ISO 27001 preparation:

Gap analysis

Gap analysis compares existing elements of an Information Security Management System with ISO 27001 criteria. This technique helps companies determine the scope of their ISMS project and plan timescales for delivery. Expect a cost of $5–7,000 for each analysis.

Vulnerability assessments

These assessments target specific security posture issues and recommend mitigation actions. Methods like penetration testing provide an overview of your data security practices, simplifying the risk assessment process. Costs vary from $2,000 for basic vulnerability assessments to $20,000 for network-wide penetration testing.

Internal audits

Internal audits assure companies that they have achieved ISO 27001 compliance. Internal auditing is a necessary step before bringing in certification auditors. However, consultants don't work for free. Daily audit costs of $1,500 are routine.

Implementation costs

Implementation puts ISO 2700 preparation into practice. Project teams must deliver policies to all relevant users and organize training. They must implement controls according to Annex A of ISO 27001 and check that these controls protect critical information.

• Training. The cost of training varies according to the number of employees and baseline expertise. However, a cost of $1,000 per year is typical for most compliant companies.
• Technical controls. Companies may need to install threat detection software, firewalls, or access management systems. The cost of these tools can reach $5–10,000.
• Compliance expertise. Companies may need to recruit a compliance professional to oversee ISO implementation. This could add $70-90,000 per year to certification costs.
• Productivity costs. Organizations may need to move key employees to the ISO 27001 implementation project, which can lead to months-long productivity slumps. Teething problems with new security systems can also reduce productivity, leading to significant but hard-to-quantify costs.

Maintenance costs

ISO 27001 is not a set-it-and-forget-it system. Compliant organizations must ensure continuous compliance with ISO 27001 standards. This requirement raises the cost of compliance significantly.

The cost varies between organizations. However, expect ongoing implementation costs like surveillance audits and policy maintenance to cost approximately $10–15,000 annually.

This figure includes annual surveillance audits and internal audit processes. ISO-certified organizations must submit to external surveillance exercises in years 2 and 3, which cost roughly $7,500. Companies must also internally audit their information security systems, which costs between $5–7,500 per year.

Maintenance costs can also spike in some situations. Costs will rise if the scope of the ISMS changes. For example, companies may change their information processing operations. They could merge with other organizations or face new regulatory rules. As a result, the company may need to retool its ISMS significantly. When the ISMS changes, auditors must ensure that it remains ISO 27001-compliant.

Staff training and awareness raising are also core elements of ISO 27001 certification. The cost of refreshing staff knowledge and building a security culture is hard to pin down but can add thousands of dollars to maintenance bills.

Is it difficult to get ISO 27001 certified?

ISO 27001 is a set of best practices designed to raise information security standards. It is not a baseline for handling confidential data. Because of this, complying with ISO 27001 standards often seems complex and demanding. However, if companies adopt the right approach, achieving compliance will not be that difficult.