ISO 27001 Certification: Why It Matters for Your Business

Data security matters—now more than ever. Because cyber threats are growing and customer trust is fragile. So, you need a way to protect your business and keep everyone's data safe. ISO 27001 can do that. As the global standard for outstanding information security, it provides a comprehensive framework for implementing and maintaining an effective information security management system (ISMS).

Below, we explain what ISO 27001 is, who needs this certification, and how we became ISO 27001 certified. We also look at how ISO 27001 can benefit organizations overall and the specific advantages it brings to us at Codekeeper.

What Is ISO 27001?

ISO 27001 was developed by the International Organization for Standardization (ISO) as a global standard that helps organizations keep their information assets secure. This framework provides a structured approach to implementing and managing an ISMS.

The primary goal of ISO 27001 is to protect three aspects of information:

1. Confidentiality: Only authorized people can access sensitive data.
2. Integrity: Information remains accurate and complete, and unauthorized changes are prevented.
3. Availability: Authorized users can access the information when they need it.

» Want to know more about ISO standards? Learn the basics of ISO certification

Who Needs ISO 27001 Certification?

While ISO 27001 certification isn't a legal requirement, it's becoming more and more relevant for businesses that handle sensitive customer data. Many customers now expect their vendors and partners to be ISO 27001 certified before they do business with them. This is particularly true for companies that provide data-related services, such as SaaS providers, data storage solutions, and data processing and analytics tools.

Any organization that handles sensitive information can profit from ISO 27001 certification. The most prominent industries that benefit from this certification include:

• Information technology (IT)
• Healthcare
• Finance
• Consulting
• Telecommunications

» Discover how software escrow can help your industry stay compliant and secure

Is ISO 27001 Certification Mandatory?

ISO 27001 is widely recognized as a best practice framework for information security management. But it's not mandatory for all organizations. The decision to implement the standard and pursue certification often depends on your country of operation, industry-specific regulations, and customer requirements.

Most companies choose to implement ISO 27001 voluntarily. They do this to strengthen their information security practices and gain a competitive advantage.

However, in some industries, ISO 27001 certification might be required by law or regulations. For instance, businesses in finance, healthcare, or government often need to comply with ISO 27001 as part of their regulatory obligations. These sectors typically deal with sensitive information and must follow strict data protection and privacy guidelines.

Note: Complying with relevant data protection laws is mandatory, even if ISO 27001 certification isn't. For example, the General Data Protection Regulation (GDPR) in the European Union sets strict requirements for data protection and privacy. Implementing ISO 27001 is a good way to demonstrate compliance with such regulations.

If you're unsure whether ISO 27001 is obligatory in your country and industry, consult with legal professionals specializing in information security. They can help you understand your obligations and check if you comply with any compulsory requirements.

What Are the ISO 27001 Requirements?

ISO 27001 outlines a set of requirements for establishing, implementing, maintaining, and continually improving an ISMS. The standard includes ten clauses, with Clauses 4 to 10 outlining the specific requirements organizations need to meet for compliance.

1. Context of the organization (Clause 4): Understand your organization's internal and external factors, identify stakeholders, and define the ISMS scope.
2. Leadership (Clause 5): Top management must commit to the ISMS, establish policies, assign roles, and integrate the ISMS into business processes.
3. Planning (Clause 6): Identify and assess risks, create treatment plans, and set measurable security objectives aligned with business strategy.
4. Support (Clause 7): Determine resources needed for the ISMS, including competence, awareness, communication, and documentation.
5. Operation (Clause 8): Plan, implement, and control processes to meet security requirements and address risks, including assessments and treatment plans.
6. Performance evaluation (Clause 9): Monitor, measure, analyze, and evaluate ISMS effectiveness. Also, conduct audits and management reviews.
7. Improvement (Clause 10): Identify and address nonconformities, take corrective actions, and continuously improve the ISMS.

How We Became ISO 27001 Certified

At Codekeeper, both internal and external factors drove our decision to pursue ISO 27001 certification. Internally, we needed a strong ISMS to protect our clients' sensitive data and maintain their trust. Externally, we faced increasing demands from leads and clients who wanted assurance of our security practices. Many larger organizations—which make up a significant portion of our client base—require their vendors to be ISO 27001 certified as a standard practice. Our goal with this certification was to be more diligent in our processes and remove any hurdles in the sales cycle.

To prepare for the certification, we focused on what was achievable for our organization, considering our size and resources, to ensure we could maintain our ISMS over time.

Here's a step-by-step overview of how we became ISO 27001 certified:

1. Our management team evaluated the resources required for the certification process and created a dedicated compliance team to lead the effort.
2. We first assessed our existing information security practices against the requirements of ISO 27001.
3. We used the ISO 27002 and 27003 standards as guides to build our ISMS. This process involved identifying the security practices we already had in place and gradually expanding them to align with the standard.
4. We incorporated the ISMS into every facet of our organization to ensure our team understands and follows it in their daily operations. This also influences how we work with third-party vendors and manage relationships with other stakeholders.
5. An independent auditor performed our first internal audit. This assessment provided valuable insights into areas that needed improvement and prepared us for the certification audit.
6. We made necessary adjustments based on the internal audit findings and continued to refine our ISMS.
7. In 2023, we completed the certification audit and got our ISO 27001 certification.

Pro tip: The ISO 27001 standard might seem daunting, but it is attainable. You just need to understand why you're implementing your ISMS and figure out what you can do—as an organization—to align with the standard. This won't be a sprint. Building an ISMS is an ongoing process that requires continuous improvement and growth. Your ISMS should be integrated into every decision you make within your organization and considered for each change.

5 Benefits of ISO 27001 for Your Business

ISO 27001 certification requires a significant investment of time and resources. But the value you get often outweighs these expenses. Our five favorite benefits include:

1. Improved Credibility and Cyber Resilience

ISO 27001 certification shows your commitment to data security and privacy. This helps build trust with customers, retain clients, and attract new business. The standard also ensures you have globally accepted processes, policies, and controls to protect against data threats and maintain business continuity.

2. Reputation Protection and Regulatory Compliance

Data breaches can devastate your business' finances and reputation. ISO 27001 certification helps you prepare for and prevent costly cyber attacks. It also promotes continuous improvement to keep pace with evolving threats and regulatory requirements. With the right processes in place, you can mitigate the risk of reputational damage and avoid hefty fines.

3. Advanced Information Security Structure

As businesses grow, information security responsibilities can become unclear or fragmented. ISO 27001 provides a clear framework for managing information risks. It ensures everyone understands their roles and responsibilities. This results in increased productivity, more informed decision-making, and cost savings by reducing duplicated efforts and minimizing wasted resources.

4. Expanded Market Reach

ISO 27001 is an internationally recognized standard for information security that makes it easier for certified businesses to expand into new markets and win customers in regions that rely on this certification. And because the standard works well with or matches up to other important frameworks like SOC 2 and GDPR, it simplifies the process of meeting new compliance requirements in the future. In other words, if you follow this standard, you're already in a good position to comply with similar regulations later on.

» Which should you choose for data security? ISO 27001 vs. SOC 2

5. Reduced Need for Independent Security Validation

ISO 27001 certification reduces the need for repeated customer audits. This saves time and resources. The standard requires regular internal audits and external assessments, which provide an independent, expert opinion on the effectiveness of your ISMS. This third-party validation assures customers, partners, and stakeholders that you're taking the necessary steps to protect their data.

Being ISO 27001 certified shows that Codekeeper takes security seriously—which is extremely important when you handle customers' sensitive data. ISO certification also positively impacts our internal operations. We now have standardized processes to ensure confidentiality, integrity, and availability in all our workflows.

» Find out how software escrow can bolster your cybersecurity efforts and protect your business

Let's Build a Safer Digital World Together

We're all connected, which means data knows no boundaries. When we all work together to create a safer digital world, everyone benefits. We get better processes, a more resilient digital infrastructure, and advanced data security for all. That's why Codekeeper prioritized our ISO 27001 certification. And that's why you should consider strengthening your own cyber defenses, too.

» Take these steps to safeguard your operations and strengthen your resilience today