In a world filled with increasing compliance requirements and regular news of cyber breaches and attacks, information security is now a significant concern for customers, business partners, and suppliers.
Organizations must have a robust cybersecurity program that demonstrates how they are keeping data secure. Staying compliant with ISO 27001 can not only help your organization to build and maintain the trust of stakeholders, it can also help you stay up to date with changing requirements and avoid costly breaches and penalties.
This article examines some of the key benefits and market factors driving the need for greater ISO 27001 compliance, how it can impact the wider organization, and changes to requirements that organizations must transition to by 2025.
What is ISO 27001? An overview
ISO/IEC 27001 is the international standard for information security; it provides a minimum baseline of information security controls required to develop, maintain, and continually improve an organization’s information security management system (ISMS). It consists of policies, procedures, and other controls involving people, processes, and technology.
When an organization is ISO 27001-compliant, clients can be assured that the level of data privacy and security meet international standards and industry best practices.
Some of the key benefits of implementing ISO 27001 include:
ISO 27001 on the rise: Market and industry drivers
The demand for ISO 27001 has been steadily increasing in recent years, coinciding with a series of security breaches and high-profile cyber attacks. Several market drivers have led to the growing importance and interest in ISO 27001 among organizations, including the following:
Customers and business partners are placing greater emphasis on information security when choosing strategic partners. ISO 27001 certification demonstrates an organization’s commitment to data security, instilling confidence and trust amongst stakeholders.
Achieving ISO 27001 certification can give organizations a competitive edge, particularly in industries where information security is critical. It demonstrates a commitment to robust security practices, providing a convincing selling point and enhancing an organization’s reputation in the market.
With the rise in high-profile data breaches and cyber threats, organizations are increasingly prioritizing data security. ISO 27001 provides a systematic approach to identifying, managing, and mitigating information security risks, making it a valuable framework for organizations seeking to strengthen their security posture.
The standard is aligned with several data protection and privacy laws and regulations, including Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) and the General Data Protection Regulation (GDPR). ISO 27001 compliance helps organizations demonstrate their commitment to meeting these regulatory requirements.
ISO 27001 is an internationally recognized standard that provides a common language and framework for information security management. As organizations expand globally or engage with strategic customers and investors, ISO 27001 offers a consistent approach to security, facilitating collaboration across borders.
ISO 27001 highlights the need for a risk management framework that is customized to meet an organization’s specific requirements and risk tolerance. To maintain compliance, organizations are encouraged to conduct regular risk assessments, identify potential vulnerabilities, and implement suitable controls to mitigate risks.
With more and more organizations using third-party vendors or service providers to help support their operations, the number of security risks can also increase. ISO 27001 practices emphasize the importance of strong third-party risk practices and can help organizations perform thorough due diligence.
ISO 27001 compliance offers a holistic approach
In contrast to other standards and frameworks, which often focus solely on technical controls or isolated security measures, ISO 27001 encourages organizations to take a holistic approach and consider the broader context of their operations.
ISO 27001’s foundation lies in a risk-based approach. In fact, organizations are required to conduct a thorough risk assessment, identifying potential threats, vulnerabilities, and the impact of security incidents. By taking a holistic view of risk, organizations can proactively address vulnerabilities across their entire ecosystem, from technological infrastructure to human resources, thus ensuring comprehensive protection across critical areas.
A holistic approach to ISO 27001 compliance also involves engaging employees at all levels, from senior leadership to front-line staff, and empowering them to actively participate in safeguarding sensitive information.
ISO 27001 compliance should not be treated in isolation. Rather, it should be integrated into the company’s business goals and strategies. By aligning compliance efforts with organizational goals, companies can enhance the effectiveness of their information strategy.
The impact of changes to ISO 27001: 2022
On October 25, 2022, ISO 27001 underwent a significant update, aimed at streamlining the standard and making it more concise. The most notable alterations occurred in Annex A, which was entirely revamped and revised. Consequently, the number of controls was reduced from 114 to 93 in the latest version of ISO 27001. Additionally, these security measures are now categorized into four sections—People, Organization, Technology, and Physical—as opposed to the previous 14 sections.
Organizations are required to transition to the new version by October 31, 2025. This transition will require meticulous planning, comprehensive training, allocation of resources, and budgeting to achieve compliance with the updated standard.
How can BDO help?
Attaining compliance with ISO 27001 is a significant—and often overwhelming—undertaking for many organizations. Whether you’re currently ISO 27001-certified or new to the standard, BDO’s Third Party Assurance team can support you throughout your compliance process.
Our team will engage closely and collaboratively with your organization, offering support across a range of ISO 27001 audit activities, including:
- Conducting a preliminary readiness assessment to detect gaps and to determine your current level of regulatory compliance.
- Providing an implementation roadmap to prioritize gaps and areas of improvement required.
- Providing remediation support to prepare you for the certification audit.
- Helping you to fully migrate to the ISO 27001: 2022 requirements.
Contact us to learn more
Sam Khoury, CPA, CRISC, CITP
ISO 27001 Lead Implementer
Partner, Third Party Assurance
416-369-6030
Dishank Rustogi
Senior Manager, Cyber Risk Management & Transformation
416-369-3109
Winnie Phung, CPA, CMA
Senior Manager, Third Party Assurance
403-956-0115