ISO 27001: requirements for achieving successful compliance

ISO 27001 is a leading global compliance framework. It deals with designing and managing an information security management system. Meeting ISO 27001 requirements encourages robust information security and reduces the risk of cyber-attacks or data breaches. Compliance cuts the risk of compliance penalties and builds trust with stakeholders or customers.

In this article, we'll discuss the cost of getting ISO 27001 certification, the important requirements of ISO 27001, the different stages of the certification process, and the milestones that companies must reach to maintain ongoing compliance.

Key takeaways

• ISO 27001 certification is not compulsory. Organizations may decide to meet ISO requirements without seeking formal certification. However, certification benefits companies by promoting trust and ensuring solid regulatory compliance. Certification also encourages companies to embed secure practices into their Information Security Management System (ISMS) management.
• The cost of ISO 27001 certification varies widely from $15,000 to $90,000. Factors influencing costs include audit preparation, implementation, and certification audit expenses. Larger and more complex organizations generally incur higher costs. On the other hand, well-prepared organizations may have smaller compliance bills.
• ISO 27001 requirements include establishing the scope of the ISMS and carrying out risk assessments. Organizations must establish project leadership, allocate human resources to sustain a secure ISMS, implement appropriate Annex A controls, and create systems that proactively fix areas of nonconformity.
• Measuring ISO 27001 performance is critical. Compliant organizations carry out annual internal audits and ISMS management reviews. External auditors must see evidence of documentation and incident logs. They will also check for ongoing information security risk assessments.

Do you need official ISO 27001 certification?

ISO 27001 certification is not compulsory. Organizations can meet ISO 27001 requirements without completing a formal certification process. However, certification has significant benefits. It may be a sensible option when designing an information security management system.

ISO 27001 certification helps companies meet their regulatory requirements. An ISMS meeting ISO standards will generally follow the EU's General Data Privacy Regulation (GDPR). It also complies with the Health Insurance Portability and Accountability Act (HIPAA).

Certification ensures that an organization's ISMS has been audited and inspected. Third-party auditors have inspected and passed policies, access controls, and physical security. Following a certification audit process, these features should meet compliance requirements.

Companies that supply IT or tech-based services on a third-party basis also find that ISO 27001 certification is essential. Passing the certification process shows that a company has robust information security processes. Similarly, partners are less likely to trust organizations that do not try to achieve certification.

How much does ISO 27001 certification cost?

The cost of ISO 27001 certification varies. However, companies can expect total costs of between $15,000 and $90,000. We can break down certification costs into a series of stages.

• Audit preparation is the most significant expense, averaging between $3,000 and $40,000. This includes risk assessments and sourcing new technology. Preparation also involves securing the resources to conduct internal audits.
• Implementation costs start at approximately $1,000 per year. Costs can rise depending on the complexity of the organization's ISMS.
• Certification audits also have a price tag. An external certification audit typically costs between $10,000 and $50,000.
  
  

Costs vary because the ISO 27001 certification process is different for each organization. Many factors influence the final bill.

Larger companies spend more to audit and secure sprawling locations and IT systems. Companies with complex data security demands also spend more when meeting ISO 27001 requirements. However, organizations with security controls or policies will have a head start. Their ISO 27001 compliance costs should be far lower.

What are the requirements for ISO 27001?

Creating an ISO 27001-compliant information security management system is a complex challenge. There are many components and steps to consider.

The ISO certification process will fail if you miss one area or make significant errors. Because of the risk of failure, it is crucial to take a systematic, careful approach to ISO 27001 projects. Focus on policies, procedures, and security measures to achieve ISO 27001 certification.

Requirement 1: Establishing the scope of the information security management system

The scope of an ISMS refers to how systems protect information. The scope also defines what information requires protection. In the ISO 27001 framework, the scope of an ISMS considers:

• Stakeholders responsible for the information security management system
• Relevant compliance requirements
• The needs of clients and users
• Standards that apply in specific sectors or industries
• Resources available to create the ISMS
  
  

ISO 27001-compliant companies must create a document defining the scope of their ISMS. This document explains what data requires protection and states the protection level for each data category. It should also explain the basis for data protection (such as laws or industry standards) and detail how the company will achieve data security.

This scoping document forms the basis for the ISM design process. It sets out the project boundaries and informs external auditors or partners about how the organization safeguards data.

Requirement 2: ISO 27001 leadership

The second set of ISO 27001 requirements involves securing executive buy-in. ISO 27001 compliance teams need executives' backing, which helps secure resources and collaborate across the organization.

ISO 27001 requirements include the need to approve an Information Security Policy Statement. Clause 5 of the standards requires executives to sign the company's Information Security Policy. Sign-off guarantees that resources will be available to implement ISO 27001 guidelines, including ongoing compliance after achieving certification.

Requirement 3: Risk assessment and clear objectives

Annex 6 of ISO 27001 requires an information security risk assessment. This section deals with ensuring continuous compliance. Companies must constantly manage threats to information systems.

The compliance team must determine the core risks facing the information security management system. Processes should categorize risks to identify high-priority threats and schedule appropriate security measures.

Project teams should also create clear risk management objectives. These objectives must relate to constructing an ISMS complying with ISO 27001 requirements. A risk assessment register should document all relevant information security threats. Measurable criteria should assess whether the organization is meeting security objectives.

Annex 6 also deals with creating ISO 27001-compliant structures. For example, companies must integrate information security into all projects, define clear security roles, and segregate duties to reduce information security risks.

Remember that external auditors will seek evidence of ongoing ISO 27001 compliance. Compliance is not a one-time challenge.

Requirement 4: Continuous resource allocation and employee recruitment

Creating a sustainable ISMS is one of the most important ISO 27001 requirements. Security controls and policies are useless without processes to allocate resources and staff roles.

Annex 7 of ISO 27001 requires ongoing training programs for employees and contractors. Training should enable employees to work securely, and educational materials should adapt to reflect new policies or security measures.

Organizations must screen employees before they begin work. Screening should use proportionate methods that follow local employment laws. Strict screening applies to roles with access to sensitive data or control over security systems. Employee terms and conditions should also include enforceable information security clauses.

Annex 7 includes requirements for offboarding employees securely. Organizations must guard sensitive information when individuals leave the organization. There should be a workable disciplinary policy to enforce human security policies.

This part of the ISO 27001 framework demands policies to ensure sustainable compliance. Auditors will check for sustainable compliance. Controls and security systems should function smoothly after the external audit.

Requirement 5: Creating an operational plan to secure assets

Applying risk-based security controls comes next in the list of ISO 27001 requirements.

Annexes 8 and 9 of the ISO 27001 framework involve implementing relevant policies and controls. Companies must create plans to mitigate issues identified in the risk assessment phase. Critical concerns include:

• Creating an inventory of assets that require protection
• Establishing ownership of information assets
• Creating secure access control systems and other information security controls to manage the use of assets
  
  

Companies should use their risk register to create a risk treatment plan. This plan considers risks to all high-value information assets. It defines measures to manage accessing, using, storing, and destroying assets. It also details physical security controls to protect against damage or theft.

Corrective risk management measures should conform to Annex A of ISO 27001. This Annex lists 93 ISMS controls divided into four categories:

• Human or user-related controls
• Technical controls
• Organizational controls (policies and procedures)
• Physical controls
  
  

Project teams should document every risk-related decision. Assessors may decide to avoid or transfer risks. The risk treatment plan should record the reason for this decision. Risk managers may also assign one or more security controls from the Annex A directory. The should record the reason for using all controls.

Auditors will verify that organizations can classify and mitigate information security risks. And they will want evidence that every risk has a relevant owner. The owner should be responsible for implementing mitigation actions.

Requirement 6: Measuring ISO 27001 performance

Continuous ISMS performance evaluation is one of the central ISO 27001 requirements.

Annex 9.2 of the ISO 27001 framework requires regular ISMS audits. These internal audits should assess whether the ISMS meets internal security goals. They assess whether continual compliance meets ISO 27001 recommendations.

The ISMS audit checks the organization's ability to evaluate its systems. It looks at whether the organization can effectively check access controls and encryption. The audit also reviews training programs and physical security measures. Sometimes, the audit includes a gap analysis. This analysis checks whether the current systems still meet ISO standards. It then suggests what actions to take for better compliance.

Compliant organizations must schedule an ISMS annual management review and internal audit. These exercises should result in comprehensive documented information about ISMS performance.

External surveillance auditors check that the organization understands its ISMS and monitor performance. Without this evidence, auditors could revoke ISO 27001 certification.

Requirement 7: Making improvements and dealing with non-compliance

ISO 27001 is a strict set of guidelines. The framework is not supposed to be completely rigid. Auditors accept that companies cannot be flawless at all times, and assessors may detect areas of non-compliance. When that happens, organizations have scope to make changes without penalty.

Clause 10 of ISO 27001 requirements deals with how to manage ISMS improvement. According to this clause, organizations must constantly improve their ISMS. They must have plans to identify and document areas of non-conformity. They need processes to rectify issues as quickly as possible.

When compliance teams notice a non-conformity, they must document the error and schedule a corrective action. Documentation is critical in this context. Auditors expect to see evidence of continuous improvement.

Making changes is not enough. Organizations must have well-evidenced, systematic processes to improve their ISMS when required. Waiting for security incidents is also not enough. Companies should show auditors that they are proactively seeking areas of improvement.

Achieving robust information security with ISO 27001

A systematic approach enables any organization to achieve and maintain ISO 27001 certification. However, there are no shortcuts in the ISO process. Organizations must allocate enough time and resources to complete the certification project.

Refer to our ISO 27001 checklist as you assess risks and implement Annex A controls. And double-check every certification requirement with internal audits and routine management reviews.

Planning and attention to detail are critical. Solid planning aligns information security management systems and ISO 27001 requirements. Follow our guidance to achieve robust data protection, prevent data breaches, and ensure smooth regulatory compliance.

Disclaimer: This article is for informational purposes only and not legal advice. Use it at your own risk and consider consulting a licensed professional for legal matters. Content may not be up-to-date or applicable to your jurisdiction and is subject to change without notice.