ISO 27001 Framework: ISMS is Explained

The ISO framework is a collection of rules and procedures that businesses may employ. By implementing an Information Security Management System (ISMS), ISO 27001 offers a framework to assist enterprises of any size or sector in protecting their information in a methodical and affordable manner.

It's crucial to remember that ISO 27001 is officially known as "ISO/IEC 27001 - Information technology - Security techniques - Information security management systems - Requirements".

It is the leading international standard for information security and was released by the International Organization for Standardization (ISO) in partnership with the International Electrotechnical Commission (IEC). Both are eminent global organizations that produce global standards.

Officially, the most recent standard is known as ISO/IEC 27001:2013. In 2013, ISO 27001's second official version was made public. Since the standard was last examined and validated in 2019, no modifications were necessary.

In this article, you will find answers to the following questions about ISO 27001.

• What is the ISO 27001 standard?

• Why is ISO 27001 important?

• What are the three principles of ISO 27001?

• What are the ISO 27001 requirements?

• Who needs to be ISO 27001 certified?

• How do you become ISO 27001 compliant?

• Who provides ISO 27001?

• What is the difference between ISO 27001 and NIST Cybersecurity Framework?

• What is the difference between ISO 27001 and GDPR?

What is the ISO 27001 Standard?

The ISO 27001 standard, which was released by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC), aids enterprises in organizing their personnel, operational procedures, and technological infrastructure. To guarantee the integrity, availability, and confidentiality of information, ISO 20071 was developed.

The Information Security Management System (ISMS) of a firm, which describes how information security has been incorporated into their business activities, is the emphasis of the ISO 27001 standard.

Companies must determine the information security risks to their systems and the necessary measures to mitigate those risks in accordance with the ISO 27001 standard. 14 categories and 114 controls total make up ISO 27001.

It is not necessary to put all of ISO 27001's controls into practice. The ISO 27001 controls indicate the options that a business may take into account, depending on its own requirements.

To demonstrate to your clients and consumers that security is a top concern, ISO 27001-as well as other compliance certifications like SOC 2-has this as one of its main goals.

The ISO 27001 standard is regarded as the industry benchmark for data and information security. A firm may demonstrate its security procedures to potential clients anywhere in the globe by obtaining an ISO 27001 certification.

Why is ISO 27001 Important?

Sensitive information protection should be a top priority for any firm. As hackers get smarter and more technologically proficient, their ability to access and compromise private data increases.

Organizations have implemented controls in one way or another as a result of the increased emphasis being placed on information security management. The effectiveness of their deployment, however, is greatly influenced by how it is monitored and controlled.

Shortsighted organizations only implement security measures that address certain IT domains, not other non-IT assets. This makes these non-IT assets more vulnerable. These issues were fixed with the establishment of the ISO 27001 standard.

Customers may be certain that your company has embraced best practices in information security by obtaining and maintaining ISO 27001 accreditation.

While receiving an ISO 27001 certification has many advantages, here are our top four recommendations for why your business should adhere to the standard.

• Gaining a Competitive Edge: It could be tough to stand out in a crowded market. Your value offer is enhanced with ISO 27001 certification. It could give you a special way to set yourself apart from your rivals. How? The following are some ways that obtaining ISO 27001 accreditation might make your company stand out:

  • The ISO 27001 certification proves to your customers that you take precautions against threats to information security and that your company applies best practices to reduce such risks.
  • Your reputation increases if your organization has ISO 27001 certification. The acceptance or rejection of a tender proposal might be significantly influenced by the presence of this specific certification.
  • It could be important to comply with ISO 27001 in order to reach foreign markets. It will enable you to compete with foreign rivals, and in certain countries, compliance with ISO 27001 is a crucial admission condition.
  • Compliance with ISO 27001 eliminates the trouble of dealing with auditors and filling out lengthy security questionnaires for each new customer. Because most clients demand ISO 27001 as a condition or at least security measures equivalent to ISO 27001, organizations with ISO 27001 certification may show their potential clients a short turnaround time when presenting bids.

• Preventing monetary loss brought on by a security breach: Do you worry about the potential cost of conforming to ISO 27001? Well, it might cost you more to do nothing. The cost of compliance should be compared to the potential expense of data breaches and service outages. Take into account the following details while calculating these costs:

  • Implementing information security may appear to be a cost, but it turns out to be a wise investment when issues are resolved more cheaply and less often.
  • According to research, a data breach not only exposes organizational secrets but also costs a lot of money. The average overall cost of a data breach was calculated to be $3.79 million, according to IBM and the Ponemon Institute's "2015 Cost of Data Breach Study: Global Analysis". This is a 23% worldwide growth over the previous two years.
  • Due to the fact that ISO 27001 is a widely recognized standard for information security of information assets, adherence to the standard can assist organizations in avoiding potential severe fines and penalties.
  • Organizations make well-informed decisions through the implementation that are based on risk management and the cycle of continuous improvement. Managers proactively choose their total analysis of cost-benefit or return on investment by selecting how many people need to be hired, what tools should be acquired, which systems should be reviewed, and how issues should be addressed.
  • By automatically integrating all other standards, such as Business Continuity Management ISO 22301, IT Service Management (ISO 20000-1), Quality Management (ISO 9001), and Environmental Management, the most recent edition of the standard, ISO 27001: 2013, guarantees C-level corporate governance (ISO 14001). Managers may develop a system of integrated procedures based on the standards since their organizational structures are comparable, saving time and money.

• Ensuring Data Integrity and Privacy: Most organizations, especially those that handle their client's personal data, place high importance on maintaining data privacy and integrity. An information security management system (ISMS) is an effective way to ensure information security management and reduce the risk of data breaches. You should consider setting up and maintaining an ISMS based on ISO 27001 for your company for the reasons listed below:

  • It is feasible to store data, regulate access, use it safely, and destroy it thanks to ISO 27001.
  • Regular risks to your information are easier to recognize, manage, and lessen in severity thanks to ISO 27001's methodical methodology.
  • Being an ISO 27001-compliant company enhances the security of your information assets, reducing the risk of being sued and losing clients' confidence as a result of data breaches.
  • The ISO 27001 processes provide you the ability to quickly identify a security breach occurrence and take appropriate action.
  • Data integrity is additionally ensured by the standard's access control, data backup, and data organization procedures. This makes it possible to separate the affected data from the rest in the case of a security breach and permits repair.

• Defining the Information-Handling Roles and Responsibilities: It could be the most neglected aspect of obtaining ISO 27001 compliance, yet it is still essential. It is just a matter of time before an organization that has seen rapid development encounters issues with the roles and duties of information assets. By aiming for ISO 27001 compliance, you inevitably develop your organizational structure and clarify roles and duties. It also guarantees:

  • You specify who will be in charge of making choices, maintaining information assets, and approving access to information.
  • Security extends to every aspect of the organization, including personnel, technology, and operating processes, and it fosters an organizational culture that values information security.
  • Senior management places high importance on information security, hence it is important for them to specify and pinpoint the tasks and responsibilities of the ISMS.
  • Your company regularly undertakes training and awareness campaigns for information security, helping to lower employee-related security breaches.

What are the Three Principles of ISO 27001?

Information Security Management System is referred to as ISMS. A planned and methodical approach to managing information security risks is provided by an ISMS, which consists of policies, processes, and procedures. Organizations prevent the compromising of their sensitive, private, and confidential data by building, deploying, administering, and maintaining an ISMS.

Upholding the CIA trinity within a company is the ultimate objective of information security and ISO 27001. The CIA triad's components are Confidentiality, Integrity, and Availability.

• Confidentiality: This entails making sure that only those with permission may access information. Confidentiality is jeopardized if a business experiences a data breach or leak when customers' personal information is accessible by criminals, the public, or staff members without the necessary authority. You may utilize a number of important security measures to protect the confidentiality, including encryption, strong passwords, two-factor authentication, Identity and Access Management (IAM), Proper Technical Controls, Physical Locks and Doors
• Integrity: To prevent unauthorized parties from changing information and to guarantee that it is reliable and correct. The integrity of the information is violated if it is altered by someone who is not allowed to do so, whether that person is from inside the organization or from outside. An illustration would be if the director of finance received a document from the CFO that needed to be evaluated or inspected. Without the CFO's knowledge, the director of finance could attempt to falsify the data in order to improve the image of his or her department, launder money, etc. To be able to trust a document's integrity, you must be able to determine whether it has been altered without your knowledge. Additionally, you must be able to retrieve all the lost data or at least the majority of it from a reliable source in the event that it is lost. You can utilize, for example, hashes, secure backups, and user access controls to maintain integrity.
• Availability: Making sure the data is available to the right individuals whenever they need it. A website like Netflix might serve as an illustration of this. Most businesses aim for the availability of at least 99.99%, which implies that when you visit Netflix, you should be able to get the services you need 99.99% of the time. You may achieve this by putting into practice a number of procedures to make sure that your business has a high uptime such as off-site backups, Disaster Recovery & Business Continuity Planning, Redundancy, Failover, Virtualization, and Proper Monitoring of the environment

What are ISO 27001 Requirements?

The procedures that must be used to decrease risks to manageable levels are referred to as ISO 27001 controls, also known as safeguards. Technical, organizational, legal, physical, and human controls are all possible.

The recommended practices for an information security management system are provided by the 14 domains of ISO 27001 (ISMS). This strategy calls on businesses to identify information security threats and then select the proper procedures to address them. Companies are required by ISO 27001 to adopt the appropriate controls across 14 domains. 14 domains house 114 controls in total. The 14 domains of ISO 27001 are as follows:

• Annex A.5. Information Security Policies: Controls over how information security policies are established and evaluated

• Annex A.6. Organization of Information Security: Information security organization controls include those for teleworking and mobile devices, as well as how tasks are delegated.

• Annex A.7. Human Resource Security: Measures for protecting human resources before, during, and after employment

• Annex A.8. Asset Management: Asset management includes rules for information classification, media handling, asset inventory, and permissible usage.

• Annex A.9. Access Control: Controls for the Access Control Policy, user access management, system and application access control, and user responsibilities all fall under the umbrella of access control.

• Annex A.10. Cryptography: Controls for encryption and key management in cryptography

• Annex A.11. Physical and Environmental Security: Controls defining secure zones, entrance controls, protection from threats, equipment security, secure disposal, Clear Desk, Clear Screen Policy, etc. are all examples of physical and environmental security controls.

• Annex A.12. Operations Security: Operational security encompasses a wide range of management tools for managing IT production, including change management, capacity planning, malware detection, backup, logging, monitoring, installation, and vulnerabilities.

• Annex A.13. Communications Security: Controls for network security, segregation, network services, information transmission, messaging, etc. are all part of communications security.

• Annex A.14. System Acquisition, Development, and Maintenance: Controls specifying security needs and security in development and support processes for system acquisition, development, and maintenance

• Annex A.15. Supplier Relations: Controls on what should be in agreements and how to oversee suppliers in the context of supplier relationships

• Annex A.16. Information Security Incident Management: Controls for reporting incidents and weaknesses, defining duties, establishing response protocols, and gathering evidence is all part of information security incident management.

• Annex A.17. Information Security Aspects of Business Continuity: Controls required for the design of business continuity, protocols, verification and evaluation, and IT redundancy are information security components of business continuity management.

• Annex A.18. Compliance: Compliance-related controls need the identification of relevant rules and regulations, the protection of intellectual property, the privacy of individuals, and evaluations of information security.

Who Needs to Be ISO 27001 Certified?

Consider the markets in which your organization operates to determine if you require an ISO 27001 certification. Is North America your main market? Are you looking to extend your business or are you currently operating internationally?

US security standard SOC 2 is well-known and widely used in business. It may not be essential to obtain ISO 27001 accreditation if your organization exclusively deals with US-based clients.

ISO certification may be required if your business does a lot of business outside of North America. Additionally, ISO 27001 certification is crucial if customers or potential customers have asked for evidence of your business' security in comparison to an internationally recognized standard.

The easiest way to determine which standard to pursue and whether ISO 27001 certification is required is to ask your customers. If clients or potential clients ask for an ISO 27001 certification, you know what to do next.

You will choose a SOC 2 over an ISO 27001 certification if it satisfies your customer's criteria as well as the security and compliance demands of your own business.

Based on the requirements of their expanding client base, many businesses finally determine they want both an ISO 27001 and a SOC 2 certification. Your organization could initially think about a SOC 2 and then seek ISO 27001 as your company grows.

How Do I Become ISO 27001 Compliant?

The times shown are approximations based on our experience assisting companies to acquire ISO 27001 certification. Overall, the key element influencing how long it takes to finish the various phases and become accredited is your dedication as a firm.

1. Put your squad together: To successfully implement ISO 27001, you require a responsible person or project manager to spearhead the effort. To guarantee that the initiative gets the appropriate backing, they will need to put together a team. This group should get together to discuss the project's objectives, vision, and timetable. Define the team's duties and responsibilities, as well as the business stakeholders who should be involved. Required time estimate: 2 to 4 weeks. Project Team RACI Chart, Statement of Applicability, and Scope of Application papers are among the deliverables.
2. Create your scope of application and information security policy: ISO 27001 does not outline a specific implementation strategy. In our opinion, deciding on the Scope of the Application is the ideal place to start. Should the ISMS apply to your entire business, a single location, a single service, or some other scope? Create your information security policy next, laying out the goals and methods your team has in mind. Make sure top management fully endorses the policy and provides you with sufficient resources. Drafting documentation outlining your organization's stance on certain concerns, such as user access control, mobile device management (MDM), or the physical security of your property is also a good idea. Required time estimate: 2 to 3 weeks. Deliverables include an employee training plan, an information security policy, and records that can be used to gauge how well your procedures are working.
3. Identify hazards and take steps to reduce them: The task of risk assessment is perhaps the trickiest one in the whole endeavor. You must establish the guidelines for determining risks, their effect on your organization, and their propensity to arise. You and your team must decide on an acceptable level of risk. Depending on your willingness to risk, this will vary from business to business, so attempt to establish a cap that you find tolerable. Required time estimate: 4 to 8 weeks. Deliverables: Risk Management Procedures, Plans for Risk Assessment and Treatment, and a Gap Analysis of Information Security Controls.
4. Putting procedures into action: Start putting your systems in place, including personnel training and awareness campaigns, controls, and required procedures. You might need to update documentation or make modifications as you become more aware of your procedures. Required time frame: 10 to 25 weeks. Deliverables include the Information Security Management System (ISMS) handbook, revised Risk Assessment and Treatment Plans, new Information Security Policies, and an updated Internal Information Security Audit Plan.
5. Assess, track, and evaluate: Take a look at your information security management system's progress (ISMS). What kind of instances have there been, and how many? Did you do each internal audit? What actions followed from them? Which KPIs are helpful for you to track? Your goals will be put to the test at this point. Create a procedure for identifying, monitoring, and maintaining the requirements required to meet your ISMS goals. Observe, quantify, examine, and assess your program. Quantitative analysis, in which the object of the measurement is given a number, is a typical metric. You might also completely depend on your own judgment to determine the outcomes. To ensure that you can maintain a careful watch on the shifting landscape of threats and dangers, we advise doing this at the very least once a year. Required time frame is 6 to 12 weeks. Deliverables: Establishing Information Security Metrics and KPIs; Creating an Internal Audit Report; Annual Report, Key Stakeholder Presentation, Corrective Action Plan(s), and Ongoing Enhancement Program (s).
6. Certification: The next stage is to pursue ISO 27001 certification through an external audit when your ISMS is operational. There are several auditing organizations from which to pick; UKAS in the UK is a trustworthy source for additional details. Because they are able to provide you with the finest input, you should think about hiring an auditor with expertise in your sector. There are two phases to the audit. If your ISMS has been built in accordance with ISO 27001's criteria, it has passed the first step. If the auditor is pleased, they will carry out a more thorough examination, which includes a site visit. Please be advised that before agreeing to an audit, you should be confident in your procedures because you will still be charged even if you fail the first step. Required time estimate: 4 weeks. Deliverables: Corrective Action Plans for Non-Conformities and a Certification Audit Preparation Plan.

Figure 1. How Do I Become ISO 27001 Compliant

Who Provides ISO 27001?

The process of becoming ISO 27001 certified can be time-consuming, sometimes requiring a year or longer. Certifications for ISO 27001 are not issued by the ISO itself. Instead, independent auditors or assessors confirm that a company has successfully applied all pertinent best practices in line with the established ISO standard. A comprehensive "ISO 27001 compliance checklist" cannot guarantee certification, due to the framework's structure and its emphasis on risk management rather than necessary technological controls. Each company is free to choose how to implement the framework, and auditors will use some professional judgment in how they assess each situation.

What is the Difference Between ISO 27001 and NIST Cybersecurity Framework?

Between NIST CSF and ISO 27001, there are several observable differences. NIST was established to assist US federal agencies and enterprises in risk management. In addition, ISO 27001 provides a method for creating and maintaining an ISMS that is accepted around the world. While NIST CSF is optional, ISO 27001 involves auditors and certification organizations. That's accurate. Despite being a self-certification system, NIST is well known.

Five functions are available in the NIST framework to modify cybersecurity controls. In addition, ISO 27001 Annex A offers 10 management clauses, 14 control categories, and 114 controls to help enterprises develop their ISMS.

Although less technical than ISO 27001, NIST places an emphasis on risk-based management and best practices for protecting all data.

Organizations with operational maturity choose the ISO 27001 certification. However, the NIST CSF work best for firms that are just starting to create a cybersecurity risk program or trying to mitigate breaches.

What is the Difference Between ISO 27001 and GDPR?

A widely accepted information security management standard is ISO 27001. The International Organization for Standardization (ISO) released it in 2005, and it was updated in 2013. A firm may use an information security management system known as ISO 27001 to develop and maintain how they handle sensitive data relevant to their workers, clients, and business partners (ISMS).

A collection of regulations governing the use of personal data is known as the General Data Protection Regulation (GDPR). It went into effect in 2018 and is applicable to all data processors. This includes those that handle names, IDs, medical and biometric data, political beliefs, and more.

The primary distinction between the two is that GDPR is an obligation under the law. The Information Commissioner's Office (ICO) may impose significant fines for violations of the GDPR's data protection requirements, which can have a lasting negative impact on a company's image. A few big businesses, including Marriott International and British Airways, have already paid a heavy price for data breaches.

The second significant distinction between ISO 27001 and GDPR is their respective purposes: ISO 27001 was developed years before GDPR went into effect and was not mainly intended to demonstrate compliance with the law. However, the GDPR has a more constrained reach because it only addresses personal data, whereas ISO 27001 takes a far more comprehensive approach to data protection.