ISO 27001 is an international standard of requirements for Information Security Management Systems (ISMS). It focuses on risk control for information assets and has been adopted by organizations worldwide. But how much does it cost to implement ISO 27001? Let’s take a look at what you can expect when budgeting for an ISO 27001 implementation.
As a first resource, you can download the framework directly from the ISO website here.
Timeframe
The time it takes for an organization to achieve ISO 27001 certification will also depend on its size and scope. Generally speaking, it can take anywhere from 6 months for smaller organizations up to 18 months or more for larger ones. During this time, your organization will need to review its existing IT systems and processes in order to ensure they meet the requirements set out by the standard. This includes conducting risk assessments, creating policies and procedures, training staff, and developing incident response plans.
Cost Factors
The cost of ISO 27001 compliance is a major factor for businesses considering implementing the standard. It’s important to understand that the cost of implementing ISO 27001 depends largely on the size and scope of your organization, as well as the resources available to you. You need to consider factors such as the number of employees, projects, IT systems, and processes that will require certification. Those costs will be the only one described here, as all other variables depend on your existing security posture.
As ISO 27001 is a multi-layered process, expect three main types of costs:
- Preparatory work
- Implementation
- The actual audit
Preparation
Your prep work will consist in understanding to what extent your organisation is far from the standard. You have 3 options:
- Using internal resources
- Using a platform
- Hiring an external consultant
1. Using internal resources: ~$25k-100k
You can either hire a full-timer for the job (if your company is big enough to sustain that cost), or assigning the task to an employee you already have.
The idea of taking the DIY route to save money and complete the readiness stage of ISO 27001 certification can sometimes seem the most cost-efficient path. When analyzing the full cost of having your internal team lead this process without any outside assistance, it becomes apparent that this option is very expensive. An analyst role that requires the skills and expertise necessary for navigating this stage of certification will cost you ~$100,000 per year.
On the other hand, breaking this down further reveals that each day invested of their time costs approximately $500. With an estimated timeline between 2.5 and 4 months to complete the readiness stage, having an employee work independently on this project will amount to spending between $25k and $40k. Furthermore, a non-compliance professional may need to use an automated platform to implement the processes.
2. Using a platform: ~$10k
Investing in a compliance platform such as Vanta or Drata can be an effective way of reducing costs.Through automation of evidence collection, streamlining of workflows, and the provision of pre-built templates for best-practice policies and procedures, such a platform has the potential to greatly decrease your workload.
Platform typically offer compliance in a matter of weeks rather than months, which means you could reduce the opportunity costs drastically. Even taking into account the cost of the platform – which is estimated at $10,000 – it would still make it one of the most affordable options on the table. Additionally, using such software provides far more than just cost savings; it also helps to ensure compliance with all relevant regulations and standards related to data protection laws such as GDPR.
Be careful though, the cost of the platform are only upfront fees. They do not take into consideration the knowledge needed to implement changes, nor the time someone has to spent at some point. One could add to that fee a part of the salary of the employee in charge of the compliance project, which we estimated in the previous part.
3. Hiring an external consultant: ~$20k-30k
Enlisting help from an outside consultant or provider for ISO 27001 readiness stage can be an effective way to save money in short run. However, don’t forget that the hardest part of the norm is actually to keep it, not to obtain it in the first place. Hiring an internal resource can be useful to save on renewal fees.
A typical consulting fee range from $1,000 to $1,800 per day or more for a full-scale implementation, which represent an overall cost of $20k-30k.
Implementation
Once you’ve completed your preparations, it’s time to begin implementing your plan. This process may involve employee training and education, purchasing security software or tools, as well as lost productivity due to time spent on compliance projects. These costs can vary greatly depending on the resources available to you and your specific security needs.
Employee training
This covers the cost of training your staff in the requirements of ISO 27001, as well as additional security awareness and best practices. Training is essential to ensure that staff are aware of the security policies, procedures and guidelines they should be following in order to maintain a secure environment.
The training should cover:
- The importance of following security policies and procedures;
- How to identify and respond to potential security threats;
- How to securely handle sensitive data;
- Proper use of passwords and access controls;
- Appropriate email management strategies;
- Best practices for mobile device usage, such as encryption and remote wiping capabilities;
- Understanding social engineering techniques and how to avoid them.
It’s important that any training material provided during employee training is customized for your particular organization, so it best fits its needs. Additionally, the training should be updated regularly, as security threats and protocols can change over time.
Finally, the effectiveness of any employee training should be evaluated on a regular basis to maintain an effective security culture within the organization. This evaluation should include feedback from employees about their understanding of security policies and procedures, as well as tests that assess how well they can apply them in practice.
By providing your staff with comprehensive ISO 27001 compliant training, you'll ensure that everyone is working together to create and maintain a secure environment for your business. Doing so will not only protect your data but also help build trust between you and your customers.
Software
If you need to purchase any new software or tools for compliance, this will be an additional expense. It is impossible to predict the cost of such expenses, as it will depend on what you need and the kind of technology involved.
You should also consider the cost of training staff to use any new software, and make sure you factor in a budget for ongoing maintenance and support.
In addition to purchasing the software, your organization may need to invest in other aspects of compliance that require additional hardware. For example, if you must implement data encryption on all devices, this could require an upgrade of existing computers or purchases of new ones. Any required server upgrades or backups should also be taken into consideration when budgeting for compliance costs.
You may also need to purchase network monitoring tools, which can detect unusual traffic patterns, unauthorized access attempts and other suspicious activities. This type of system is essential in helping organizations minimize their risk and ensure they remain compliant with current regulations. The cost of these tools will depend on the type of monitoring and analytics needed, as well as any additional hardware or software required.
Lost productivity
This covers the lost hours of productivity due to the additional time required for compliance projects. If workers are pulled away from their regular duties to focus on meeting compliance requirements, it will take them longer to complete the same tasks and may cause delays in other projects. Compliance requires resources and time that could potentially be used elsewhere. This means that your business may not be able to capitalize on new opportunities or innovative ideas due to the focus on compliance needs. Additionally, if a business fails to comply with certain regulations, it may face penalties or fines which can further reduce potential profits.
Opportunity costs are a necessary evil if your want to make a step ahead in your security. If your systems fail or are not properly managed, then this can lead to major data breaches with serious consequences. This can include potential financial losses, damage to reputation and even regulatory penalties. As such, compliance is essential for keeping customer data secure. Compliance measures are also necessary in order to remain competitive in today’s market.
Audit
A preliminary, internal audit is needed in the processes. Once you’ve completed all necessary preparations and implementations, an independent third-party auditor will assess your risk management system against ISO 27001 requirements and issue certification if you meet or exceed their standards.
Certification is valid for three years at which point continued conformity must be verified through periodic surveillance audits.
Stage 1 & 2 audits: ~$20-40k
Stage 1 audit
The initial ISO 27001 certification process involves two distinct stages of examination.
During Stage 1, an auditor will review your Information Security Management System (ISMS) design and documentation to ensure that it meets the requirements laid out in the ISO 27001 standard. It is a superficial and documentary audit, which lays the ground for the “real deal” in stage 2.
This may include analyzing the security architecture and implementation policies used by your organization, as well as verifying that all processes are up to date. Additionally, they'll check that any nonconformities with the standard have been addressed, so you can be sure that your ISMS is secure and compliant with ISO 27001.
Stage 2 audit
In short, Stage 2 of the audit is designed to make certain that all aspects of information security management within your organization meet the requirements set out by ISO 27001. The auditor will go deeper into evaluating your business processes and controls against ISO 27001 compliance criteria. They'll analyse how you handle data protection and security operations, inspect system access control measures, verify disaster recovery plans, assess physical security measures and ensure that users are aware of their responsibilities when it comes to information security. The auditor will also review internal audits and regular reviews of ISMS performance in order to make sure that everything remains compliant with the ISO 27001 standard over time.
Maintenance costs: ~$10-30k
Once you have obtained your certification, an internal audit and a surveillance audit will be required of you each year for the following two years. The cost of these audits is significant, and varies according to the number of people involved in the perimeter.
One can average that cost at $7,500 a piece, which means that the average cost for both auditing processes over the two-year period comes to a hefty $15,000 annually. Not only does this represent a considerable financial burden for those who are certified, but it also demonstrates the importance of taking part in these processes and adhering to necessary regulations and standards. Moreover, failing to comply with these requirements can lead to serious repercussions from governing bodies in the field. As such, it is critical that those who are certified remain fully aware of their obligations when it comes to conducting internal and surveillance audits on a regular basis.
Total costs (3 years)
- Prep work: $10k-100k
- Implementation: Depends
- Actual audit: $30k-70k
Conclusion
While there is a cost associated with implementing ISO 27001 certification, the benefits far outweigh any initial investment you make. By implementing strong information security practices based on industry best practices, you can reduce risk across your organization. Having an ISMS in place ensures that any data breaches or other security incidents are handled quickly and efficiently so as not to cause serious disruption or damage to your business operations.
Additionally, getting the ISO will help boosting customer confidence in your products or services.
Implementing an ISMS based on ISO 27001 standards is essential for protecting valuable information assets within any organization. While there is a cost associated with doing so, this initial investment pays dividends in terms of peace of mind and improved customer confidence in the long run. By understanding the different factors involved—including size and scope—an organization should be able to accurately budget for their ISO 27001 implementation project accordingly.
