ISO 270019 min read

What is ISO 27001?

ISO 27001 is an internationally recognized certification for information security management. Unlike SOC 2 (which produces an audit report), ISO 27001 results in a certificate that demonstrates your organization has implemented a robust Information Security Management System (ISMS).

One of the strengths of ISO 27001 is its versatility. The standard applies to organizations of all types—from technology companies to professional services firms to healthcare providers. This broad applicability means ISO 27001 is particularly valued in European and APAC markets, where it has become the default expectation for enterprise customers.

Key Takeaways

Point Summary
What it is International certification against ISO/IEC 27001:2022, the standard for Information Security Management Systems (ISMS), issued by accredited certification bodies
Timeline Typically 3-4 months with expert guidance
Cost €10,000 to €50,000 depending on company size, scope complexity, and technical environment
Certification cycle 3 years: Initial certification → Years 2-3 surveillance audits → Year 4 recertification
Key difference from SOC 2 More documentation-focused, internationally recognized certificate (vs. report), widely adopted in EU/APAC markets

Quick Answer: ISO 27001 is a 3-year international certification for information security. The investment ranges from €10,000 to €50,000 based on your organization's scope and complexity. ISO 27001 is particularly valuable for companies serving European enterprise customers or pursuing public sector contracts.

ISO 27001 vs SOC 2: Understanding the Difference

ISO 27001 SOC 2
Designed for Any organization SaaS/cloud services
Output Certificate Audit report
Focus Management system, processes Technical controls
Geographic strength EU, APAC, public sector US, North America
Timeline 3-4 months 4.5-6 months (includes observation period)
Certification cycle 3 years Annual

*Timelines vary based on company size, complexity, and initial security readiness.

Both frameworks have their strengths. ISO 27001 provides a comprehensive management system approach that emphasizes governance, risk management, and continuous improvement. SOC 2 tends to focus more on technical controls with particular relevance to SaaS and cloud service providers. Many organizations ultimately pursue both to maximize their market reach.

Documentation: What to Expect

ISO 27001 requires a structured set of documentation to support your Information Security Management System. This typically includes:

Document Type Count
Information security policy 1
Supporting policies 15-20
Procedures 8-10
Statement of Applicability 1
Risk assessment methodology 1
Risk treatment plan 1
Total 30-35 documents

While this may seem extensive, the documentation serves an important purpose: it ensures your security practices are consistent, repeatable, and can be maintained as your organization grows. Working with an experienced partner can significantly reduce the burden—they can provide templates tailored to your environment and handle much of the drafting work, allowing your team to focus on review and implementation.

The 3-Year Certification Cycle

ISO 27001 operates on a three-year certification cycle, which differs from SOC 2's annual report cadence:

Year What Happens
Year 1 Initial certification (Stage 1 + Stage 2 audits)
Year 2 Surveillance audit (shorter, subset of controls)
Year 3 Surveillance audit
Year 4 Full recertification (back to Year 1)

This structure reflects the standard's emphasis on continuous improvement. Each year, auditors expect to see your security practices evolving and maturing alongside your organization.

Key considerations:

  • Lower ongoing effort: Surveillance audits in Years 2-3 are significantly less intensive than the initial certification
  • Long-term commitment: ISO 27001 certifications are tracked in public registries, so it's worth considering whether you're ready to maintain the certification over time

When ISO 27001 Makes Sense

ISO 27001 may be a strong fit if:

Scenario Why ISO Works
European or APAC customers ISO 27001 is the recognized standard in these markets
Public sector contracts Government procurement often requires ISO certification
Regulated industries Financial services, healthcare, and insurance frequently mandate ISO
HDS certification path Health Data Hosting (HDS) builds on ISO 27001
International expansion ISO provides a globally recognized credential

You might consider other options first if:

  • Your primary market is North America and customers specifically request SOC 2
  • You're in a very early stage and need to prioritize product-market fit
  • Technical security validation (including penetration testing) is your customers' primary concern

ISO 27001 as a Journey

One of the thoughtful aspects of ISO 27001 is that it recognizes organizations are at different stages of maturity. The standard is designed to grow with you.

Auditors understand that a 10-person startup won't have the same processes as a 500-person enterprise. What matters is that your security management system is appropriate for your current context and shows improvement over time.

The maturity approach:

  • Year 1: Establish a baseline appropriate to your size and risk profile
  • Years 2-3: Demonstrate continuous improvement
  • Year 4: Show matured, refined processes

This philosophy means that controls are risk-based:

  • Smaller organizations can implement proportionate controls
  • Higher-risk data processing warrants more robust safeguards
  • Your ISMS should reflect your actual business context

What Auditors Look For

Core Requirements

Certification auditors will verify that you have the foundational elements in place:

Scaled to Your Organization

Auditors apply the standard pragmatically based on your size and context:

Control Area Smaller Organization Larger Organization
Background checks Appropriate screening More comprehensive vetting
Security team Shared responsibilities Dedicated security personnel
Process maturity Documented and functional Formalized and refined
Incident response Clear escalation path Comprehensive program

A Note on Penetration Testing

One consideration worth mentioning: ISO 27001 does not explicitly require penetration testing. The standard requires an internal audit (Clause 9.2) and that you address technical vulnerabilities (control 8.8), but it doesn't prescribe penetration testing as the method.

However, many customers include penetration testing in their security questionnaires, regardless of which certification you hold. If your customers tend to request pen test reports, you may want to consider either:

  • Adding penetration testing to your ISO 27001 program
  • Pursuing SOC 2, which typically includes penetration testing
  • Pursuing both frameworks for comprehensive coverage

Learn more about the differences between SOC 2 and ISO 27001.

Typical Timeline

ISO 27001 certification can often be achieved faster than SOC 2 because there's no mandatory observation period. With experienced guidance, most organizations can complete the process in 3-4 months.

Phase Duration
Implementation 6-8 weeks
Internal Audit 1 week
Stage 1 Audit 1 week
Stage 2 Audit 1-2 weeks
Total 3-4 months

*Timelines vary based on company size, complexity, and initial security readiness.

Working with a managed services partner can make a significant difference here. Rather than spending countless hours learning the framework yourself, you can leverage experts who handle the heavy lifting—ensuring things are done right the first time and avoiding costly iterations and rework.

Investment Range

ISO 27001 certification costs typically range from €10,000 to €50,000, depending on several factors:

Factor Impact on Cost
Company size Larger organizations require more extensive documentation and audit time
Scope complexity More systems and data types in scope increases implementation effort
Technical environment Complex or legacy infrastructure may require additional controls
Level of support Self-guided vs. fully managed services

A comprehensive managed service engagement typically includes:

  • Compliance platform and tooling
  • Policy documentation tailored to your environment
  • Internal audit support
  • External certification audit coordination
  • Ongoing guidance and maintenance support

For more details, see our complete guide to ISO 27001 costs.

Multi-Office and Remote Teams

A common question: "We have offices in multiple countries. Do we need separate certifications?"

In most cases, no. If your team works remotely with laptops and all data is stored in cloud services, your physical office locations typically don't require separate certifications.

From an information security perspective, what matters is how data is accessed and protected—not the physical location of your employees.

When location matters: If you have on-premise servers or physically store sensitive data at specific locations, those facilities may need to be included in your audit scope.

Handling Company Growth and Acquisitions

ISO 27001 accommodates organizational changes gracefully:

Scenario Approach
Acquisition before audit Certify your current scope, then integrate acquired entities later
Acquisition after certification Scope adjustment at the next surveillance audit

The standard recognizes that businesses evolve. Auditors expect scope changes and have established processes to handle them. Typically, you can include a commitment letter stating acquired entities will be brought into scope at the next audit cycle.

Maintaining Your Certification

It's worth noting that ISO 27001 certifications are tracked in public registries maintained by the International Accreditation Forum (IAF). If you discontinue your certification, this becomes visible to customers who check the registries.

This doesn't mean you should avoid ISO 27001—it simply means the certification represents a commitment to ongoing security management. For most organizations pursuing ISO 27001, this long-term perspective aligns well with their business objectives.

Synergies with SOC 2

If you're considering both frameworks, you'll find significant overlap:

Shared Controls Coverage
Access Control Both
Change Management Both
Incident Response Both
Risk Management Both
Vendor Management Both
Encryption Both
Monitoring Both
Total Overlap ~70% (may differ per company)

This means that pursuing both frameworks is significantly more efficient than pursuing them independently. If you complete one framework first, much of the foundational work carries over to the other.

Choosing Your Path

The right framework—or combination of frameworks—depends on your specific situation:

Consider starting with ISO 27001 if:

  • Your primary customers are in Europe or APAC
  • You're pursuing public sector or government contracts
  • HDS certification is part of your roadmap
  • Your enterprise customers specifically request ISO 27001

Consider starting with SOC 2 if:

  • Your primary market is North America
  • Your customers are primarily SaaS-savvy tech companies
  • Penetration testing is a frequent customer requirement

Consider both frameworks if:

  • You serve customers globally
  • Different customer segments have different requirements
  • You want maximum market coverage

Many organizations find value in pursuing both frameworks, leveraging the significant overlap to build comprehensive security that meets diverse customer needs.

Not sure which framework fits your customer base? Talk to our team

Sources

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