It’s one thing to claim that your organization upholds the strongest cybersecurity policies and procedures, but it’s another to prove that you do so. That’s why cybersecurity compliance for SaaS is important. It lets your customers, partners, and stakeholders know that your business has taken the essential steps to protect its digital information and systems. Which brings us to one of the most recognized compliance certifications in the world — ISO 27001.
ISO 27001 is a standard that governs information security management systems (ISMS). It provides organizations of all sizes and industries with best practices for creating, maintaining, and improving ISMS. When your organization has ISO 27001 certification, this means it has put in place measures and systems to manage any information or data you handle securely. This can provide a competitive advantage for your business, particularly in industries where data security is paramount. While important for businesses of all sizes, ISO 27001 is especially relevant for organizations that operate internationally, as it demonstrates compliance with global security best practices.
As you might already know, getting ISO 27001 certified isn’t free; it costs a considerable amount of money, which may vary depending on your business’s size. That said, this article will provide answers regarding the cost of ISO 27001 certification for small businesses and the factors that may affect it.
How Much Does ISO 27001 Cost for a Small Business?
Before we get into how much it will cost for your business to get this certification, it’s important to understand who needs ISO 27001. The answer is simple: any organization that handles data, regardless of size and industry. This is especially true in light of increased security and data breaches, which don’t discriminate based on the size or type of organization. Every business is fair game for threat actors.
Now, to answer the question “How much does ISO 27001 cost for a small business?” There isn’t a one-size-fits-all answer because the cost varies depending on several factors, including your organization’s size, the number of office locations, the type of data you handle, etc. Basically, it depends on how complex your organization is.
Nevertheless, it’s worth having rough estimates of how much the ISO 27001 certification process will cost your organization. Generally, the ISO 27001 compliance process consists of three main stages — preparation, implementation, and audit. All of these stages will cost your business money, so let’s explore these expenses and what they entail.
Preparation
This stage involves getting your organization ready for ISO 27001 certification. You may incur the following costs:
- $350 to purchase a copy of the ISO standards. This includes $125 to download a copy of the ISO 27001 standard and $225 for ISO 27002, which is a guideline for implementing ISO 27001.
- $5,000-$8,000 to conduct an ISO 27001 gap analysis.
- $5,000-$50,000 for penetration testing to expose any vulnerabilities within your systems.
Implementation
The implementation stage is where the actual work toward achieving compliance begins. This stage usually involves aligning your organization’s processes with the controls outlined in ISO 27001. Costs for this stage may include:
- $10,000-$20,000 in consulting fees for external guidance in implementing ISO 27001 controls if internal resources are insufficient.
- $1,000-$5,000 to conduct employee training so they can understand and follow the new processes.
- Upward of $10,000 for tools and technologies to help strengthen your organization’s security posture.
Audit
The audit process comprises two main stages. Stage 1 involves an ISO 27001 certification lead auditor reviewing your documentation to determine if you can move to the next stage. In Stage 2, the auditor investigates your business processes and controls to determine if it’s ISO 27001 compliant.
Most auditors usually package the two stages together in terms of cost, but it varies with your organization’s size and the auditor you hire, among many other factors. This cost can range from $10,000 to $50,000.
Passing the certification audit isn’t the end of the road. To maintain certification, your business will face routine surveillance audits, which should occur in years one and two after the first audit. These cost between $6,000 and $7,500. Additionally, in the third year, your business must undergo a recertification audit, which costs just as much as the original audit.
What Is the Value of ISO 27001 Certification
The value of ISO 27001 compliance far outweighs the cost of certification. ISO 27001 certification tells your clients and stakeholders that you take information security seriously, which gives you a competitive advantage over other businesses in your industry. Your customers and partners will feel confident that you can protect their sensitive data and that your business is less likely to experience a damaging breach. This trust is essential for establishing stronger relationships, increased business opportunities, and a solid reputation in your industry.
Additionally, getting and maintaining certification helps lower the chances of data breaches and cyberattacks, which can be extremely costly. Statistics indicate that the average cost of a data breach for an organization in 2024 hit $4.88 million, which was a 10% increase from the previous year.
How to Obtain ISO 27001 Certificate
Obtaining an ISO 27001 certificate requires a lot of preparation. From establishing your ISMS to performing an internal gap analysis and implementing necessary controls, you need to do a lot of groundwork. This is where Trava Security comes in. Our Compliance & Virtual CISO Services (vCISO) help ensure that your organization adheres to ISO 27001 standards by providing expert guidance to safeguard sensitive data. Additionally, we offer penetration testing services to identify potential vulnerabilities, which is crucial for addressing security gaps before the official certification audit.
Once you complete all the preparation steps and have implemented the necessary controls, you can now hire an ISO 27001 certification lead auditor. This auditor is usually part of a certification body that’s accredited and qualified to perform this audit. The body conducts the audit in two stages, after which your business receives certification if it passes the audits.
How Many Mandatory Requirements Are There for ISO 27001?
Before 2022, the total number of mandatory requirements or controls in ISO 27001 was 114, but this has since been reduced to 93. Your business, however, doesn’t have to implement all of these controls to pass the ISO 27001 certification process. Rather, you’re only required to implement controls that are relevant to your specific business operations and risk environment. Examples of common ISO 27001 controls include:
- Access control: This control provides guidance on how businesses manage access to sensitive data.
- Information security incident management: This explains how organizations should respond in cases of a security or data breach. It requires businesses to establish procedures and responsibilities to handle such scenarios.
- Cryptography: This covers how organizations can leverage cryptographic controls, such as hashing and digital signatures, to protect confidential information during storage and transmission.
- Supplier relationships: This ISO control outlines how businesses should manage security risks associated with third-party vendors.
Conclusion
With so many factors involved, ISO 27001 certification costs will vary significantly across businesses. Nonetheless, the cost of certification should be a nonissue, given the value it provides your business, from improved customer and stakeholder trust to reduced security breaches and losses, and a competitive edge.
Need to prepare for the ISO 27001 certification process? At Trava Security, we can help. We offer tailored advisory, assessment, and penetration testing services that are vital to preparing for ISO 27001 audits. Contact us today and learn how we can help you navigate the complex certification process. Your first consultation is absolutely FREE!