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ISO 27001 CERTIFIED, BSI C5
iso-27001-certification

ISO 27001: definition, advantages and benefits of the norm

6 min read

Imagine you always leave your front door unlocked and don't use an alarm system – you simply hope that no one will think of breaking in. This is exactly how many companies handle sensitive data. But what a garden fence and door lock are to your home, ISO 27001 is to your company data – a clear sign that you are serious about security.

With clear yet flexible requirements, ISO 27001 gives you a guideline for protecting your data and deterring cyber criminals. In the following article, you can find out exactly how this works, what ISO 27001 actually is and how you can introduce it in your company.

What is ISO 27001?

The ISO 27001 – officially referred to in its current version as "DIN EN ISO/IEC 27001:2022 Information security, cybersecurity and privacy protection – Information security management systems – Requirements (ISO/IEC 27001:2022)" – is an internationally recognized standard for information security management systems (ISMS). It provides a structured framework to ensure the protection of confidential data.

The ISO 27001 offers companies, organizations and institutions that want to comply with the specified standards a flexible structure to protect their data, IT systems and processes against risks such as cyberattacks, data loss or misuse. The standard specifies how an information security management system is set up, implemented, maintained and continuously improved. The aim is to identify risks in the area of information security and minimize them through appropriate measures.

Who needs ISO 27001?

The most important information right from the start: ISO 27001 is a voluntary certification. This means that there is no obligation to implement this standard in an organization.

However, there are many good reasons to meet the requirements of ISO 27001 – not least the ever-increasing risk of cyber attacks. Often enough, an ISO certification is also a prerequisite for potential customers and / or business partners to enter into a business relationship.

Accordingly, ISO 27001 is relevant for almost every company and organization that deals with information and data. This includes

Public institutions:
Whether a public authority, hospital or school – almost every public institution processes sensitive personal data and is subject to strict data protection regulations. The ISO 27001 certification helps public administration to close security gaps and ensure compliance with legal and regulatory requirements. It also increases the citizens' confidence that their sensitive data is being managed securely.

Small and medium-sized enterprises:
For small and medium-sized enterprises (SMEs), protecting information is often a major challenge, as resources and expertise are frequently limited. Nevertheless, they are also increasingly being targeted by cyber criminals. With ISO 27001, SMEs can raise their IT security to a professional level and at the same time reduce costs through efficient security processes.

International corporations:
International corporations often have complex IT infrastructures and are confronted with different data protection requirements in different countries. ISO 27001 offers a globally recognized standard that makes it possible to manage information security uniformly across all locations and ensure consistent security measures.

Start-ups and young companies:
For start-ups and young companies – especially those operating in highly technology-driven sectors – protecting data can be crucial for growth and building trust with investors and customers. ISO 27001 can help young companies to create solid security structures from the outset and minimize risks when handling sensitive information.

Note: So-called KRITIS companies are a special case. These companies, which are classified by the legislator as belonging to the critical infrastructure and are of great importance to the state, are obliged under German law to use an ISMS and regularly prove that their IT security is up to date. Compliance with these requirements can be achieved, for example, through an ISO 27001 certificate.

How do you get an ISO 27001 certification?

Internal preparation

Certification to the ISO 27001 standard is complex, costly and time-consuming. But the investment in corporate security is well worth it. However, before you have your company certified, it is necessary to prepare accordingly. The following steps must be observed:

  1. Initiation of the process by the management
  2. Clarify responsibilities within the company
  3. Analyze the current security situation and existing processes
  4. Carry out a risk analysis
  5. Create or revise information security guidelines
  6. Define measures to minimize risks
  7. Document ISMS measures and processes
  8. Train and sensitize employees
  9. Implement ISMS in the company
  10. Carry out internal audits
  11. Regularly monitor and improve the ISMS

Once these foundations have been laid, the next step is to aim for an external certification audit.

External certification

An ISO 27001 certification is carried out by an accredited testing body. This carries out an audit to check whether all requirements have been met. If the company passes the audit, it receives the certification, which is usually valid for three years before a recertification takes place. The following steps are carried out in detail:

  1. Commissioning of the inspection body
  2. Review of the ISMS documents by the auditor
  3. Review of the effectiveness of and compliance with the ISMS by the auditor
  4. Delivery of the audit report with recommended improvements
  5. Issue of the ISO 27001 certificate (if the audit is successful)

Once a company has achieved ISO 27001 certification, there is also an annual surveillance audit to check the effectiveness and further development of the ISMS, as well as a complete recertification every three years to ensure that the ISMS is always up to date.

The 5 biggest benefits of an ISO 27001 certification

Independent proof of quality:
As certification is carried out by an independent third party, it ensures that conformity with the ISO 27001 standard has been objectively achieved. Unlike a company declaration, for example, customers, partners or other external parties can be sure that the certified company can guarantee a sufficient level of IT security measures.

Strengthening information security:
The introduction of an ISMS in the course of the ISO 27001 certification strengthens company resilience against cyberattacks or similar. It helps to identify potential threats at an early stage and proactively eliminate security gaps. It also minimizes the risk of security incidents.

Greater company transparency:
ISO 27001 ensures that all security-relevant processes and structures in a company are systematically documented. This leads to a better overview and clarity about how information is processed and protected – which not only promotes trust, but also facilitates internal communication and problem management.

Continuous improvement:
ISO 27001 requires organizations to regularly review and adapt their information security measures. This means that companies not only react to current risks, but also work proactively to continuously improve security standards – which ultimately benefits resilience.

International recognition of the standard:
ISO 27001 is a globally recognized standard. The certification signals to customers, partners and authorities at a global level that the company complies with high, internationally valid standards in the area of information security.

What does ISO 27001 certification cost?

The financial costs of ISO 27001 certification depend on several factors, including the size of the company, the complexity of the IT structures and the number of locations. The biggest cost items include the preparation for certification, the involvement of internal resources, possible external consulting and the actual certification by an accredited certification body.

For smaller companies, the costs can start in the lower five-figure range, while larger companies can expect to pay significantly higher sums. Follow-up costs due to recertification and regular audits should also be considered.

The not inconsiderable time factor must also be taken into account. Depending on the existing conditions in a company, a longer processing time ranging from a few months to several years must be factored in when implementing the measures for an ISMS. In addition, you will need to anticipate even more time for internal and external auditing afterwards.

Conclusion: figurehead and watchdog in one

ISO 27001 not only offers security, but also structure and transparency. It allows you to identify and eliminate vulnerabilities at an early stage, while at the same time making your company's internal processes more efficient. The effort involved is not insignificant, but once certification has been obtained, not only have important security systems been established – from which you will benefit for a long time to come in view of ever-increasing information security and data protection requirements – but you can also clearly demonstrate that people can rely on the proven implementation of appropriate measures.

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Christopher Diesing
About the Author:
Christopher Diesing is the COO of Stackfield. He loves all kinds of marketing, product design as well as photography.
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