ISO 27001 is vital to scale your startup and is ultimately, a launchpad to securing sales and ensuring your security posture is in line with industry standards. But what happens when customers are requesting your ISO 27001 certification and your team is running in circles unsure exactly where to start? We get it – as a fresh startup, it’s a resource-intensive project to tackle, with its endless requirements and confusing jargon.
This eBook unlocks the crux of ISO 27001 certification, especially made for SaaS startups new to the ISO 27001 scene.
When it comes to running a successful startup, it can often feel as if the recipe for success is constantly changing. After all, building a startup is often a learning process in itself, as each business faces unique challenges and hurdles. In fact, no two startups have the same experience with funding, product development, client acquisition, or other critical aspects of launching a business.
So then, amidst the uncertainty and unpredictability of it all, how can startups ensure they have a strong foothold in the marketplace? More importantly, how can startups rest assured that they’re staying competitive in a tech-driven landscape, without compromising their data security? We’ll keep it short: ISO 27001.
This eBook covers everything you need to know about the most demanded security compliance certification and how to best achieve the security standard with limited resources.
Whether you’re a compliance guru or a newbie to the world of information security, navigating ISO 27001 can quickly level the playing field. Fortunately, we’re here to help you dive into the basics and the nitty-gritty of ISO 27001 and everything you need to leverage it to supercharge your startup and ensure that it fuels your growth trajectory, security, and risk management while meeting growing customer compliance demands.
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Let’s get the tech jargon out of the way. ISO 27001 is formally known as ISO/IEC 27001:2022 and is an information security standard created by the International Organization for Standardization (ISO). It provides businesses with a framework and guidelines to establish, implement, maintain, and continually improve an information security management system (ISMS).
Wow, that’s a lot. Are you still with us? Let’s break it down into human talk.
Your business deals with a whole lot of data. Be it client-related, financial data, system-related, or unique to your core offering and processes. Information touches every aspect of what you do, some of it being sensitive information. ISO 27001 provides the quintessential guide to how businesses can protect themselves and their clients from internal and external threats to the sensitive information in question. This includes setting a standard for risk assessments, staff training, security controls, policies, and processes to ensure the confidentiality, integrity, and availability of your data.
It does this by mapping out the ideal ISMS and providing guidelines, requirements, and controls for businesses to do the same. Once you’ve achieved this and you’ve passed your ISO 27001 audit process, a certifying body will give your business the much acclaimed ISO 27001 stamp of approval, and you will be ISO 27001 certified.
This brings us to our next question: why would businesses want to become ISO 27001 certified in the first place, especially if you’re still in the startup stage? Before diving into what’s in it for you, let’s make sure you’re familiar with the foundation of ISO 27001 – its three key pillars.
Confidentiality: This means making sure your information is protected from unauthorized access or disclosure. You’ll use measures like access controls, encryption, and secure storage.
Integrity: This pillar focuses on maintaining the accuracy and trustworthiness of your information. Think data validation, version control, and robust backup procedures.
Availability: Ensuring your systems and services are accessible when needed by authorized users is crucial. Implementing redundancy, disaster recovery planning, and business continuity management are key here to keep things running smoothly.
Put them all together, and you’ve got the C-I-A triad – Confidentiality, Integrity, and Availability. These three pillars are the backbone of ISO 27001, helping you secure your data and keep your ISMS in top shape. And, if you’re thinking, “Wait, wasn’t there an update recently?” – you’re right. The latest edition, ISO 27001:2022, is designed to keep up with the fast-paced digital world we live in.
From a startup perspective, you may believe that your business can remain under the radar regarding security threats. This couldn’t be further from the truth. In fact, almost half of all cyber breaches impact businesses with fewer than 1,000 employees. The only difference is that smaller businesses are generally less likely to survive a security breach or cyber attack.
However, we can’t ignore the fact that despite the plethora of fear-striking stats, the small business founder frequently has other priorities and worries that keep him up at night, and often – compliance isn’t high on that list. Therefore, despite the significant advantages that being ISO 27001 certified holds from a data privacy and information security compliance perspective, it’s worth noting that there’s much more to cybersecurity than meets the eye.
More often than not, the choice is fairly simple – there is none. Depending on the type of information your business handles, along with your location and industry, you may be subject to specific regulatory frameworks. For example, suppose your startup comes into contact with Protected Health Information (PHI), in that case, you may be subject to mandatory HIPAA compliance. Alternatively, you could be subject to other regulatory frameworks such as NIST CSF (Cybersecurity Framework) and the General Data Protection Regulation (GDPR) of the European Union.
Being ISO 27001 certified meets the highest standard of information security to build customer trust by enforcing a security-conscious workforce and creating the ultimate baseline foundation for security policies, processes, and controls.
No founder wants to deal with a data breach, it’s the stuff of nightmares. ISO 27001 helps you set up controls to protect sensitive information, avoiding potential disasters and ensuring peace of mind for you and your stakeholders. At the same time, cyber threats evolve fast. ISO 27001 helps you stay ahead by systematically identifying and addressing security risks, reducing the chance of costly incidents as your startup grows.
In the startup ecosystem, trust is everything. Your customers, investors, and partners need to know their data is safe in your hands. If they can’t trust you, your growth potential could hit a roadblock, and fast. ISO 27001 certification is your stamp of approval for top-notch data security, which can be a game-changer when pitching to clients and investors wary of risk. Additionally, with data security being a deal-breaker for many customers, ISO 27001 builds confidence in your ability to protect their information, leading to higher customer satisfaction, loyalty, and positive word-of-mouth – priceless assets for any growing startup.
Becoming ISO 27001 certified also allows startups to tap into new global markets and close deals without compromising information security or data privacy. In fact, in many cases, prospects request to see proof of due diligence concerning security standards before doing business with you, so it becomes a fundamental need to keep you from losing business opportunities, including enterprise deals. By starting out with the leading security standard, startups don’t have to worry about playing compliance catch-up once an opportunity arises. Instead, they can confidently move into bigger projects and new markets, knowing they have strong security standards protecting their business and clients from threats.
ISO 27001 can streamline your operations by formalizing your security procedures. This not only tightens security but also boosts efficiency in project management and resource allocation.
Regardless of the industry, information security is imperative when it comes to onboarding and retaining customers. Why? In a saturated market, choosing between companies often boils down to where clients feel their data and information is most secure. Customers are more inclined than ever to ask hard questions concerning whether they can trust a business with their critical information. An ISO 27001 certification gives the transparency and trustworthiness they seek. Known as the “golden standard”, ISO 27001 proves that your startup differentiates itself from some competitors by showing due diligence and giving you an upper hand over competitors who have implemented another framework or none at all. However, with the importance of infosec becoming non-negotiable, 99% of the time a security compliance framework is requested by prospects, so it becomes a must-have in order to sign deals and grow.
With the benefits of becoming ISO 27001 compliant so evident, one would expect more companies (especially startups) to make it their first order of business. Yet, many small businesses struggle to get certified due to common challenges hindering the process.
Naturally, things regarding the compliance landscape aren’t always as clear or straightforward as expected. For startups, in particular, navigating security compliance for the first time can feel overwhelming. Why? Well, to be frank, without the proper guidance, it’s pretty darn tough – especially if you’re still working hard to get your feet off the ground. But despite the challenges, prioritizing security compliance is one of the most fundamental steps in ensuring that your start-up can withstand the headwinds of scaling, cyber threats, and an evolving digital landscape.
To help curb some of the initial uphill battles of starting your journey towards ISO 27001 certification, here are some of the most common challenges (and solutions, of course) to getting ISO 27001 certified.
Most startups don’t hit the ground running with an inhouse CISO, security compliance manager or an ISO 27001 compliance guru, and that’s perfectly normal. However, due to the complexity of ISO 27001 information security management requirements, it’s also one of the most significant drawbacks and challenges for startups.
To overcome this, we recommend leveraging experts who have experience and knowledge around the specific audit requirements involved in getting ISO 27001 certified. They can help you avoid common missteps, like underestimating the time commitment or overlooking key documentation requirements. They can also provide excellent resources in order to gradually educate your team on best practices – building internal knowledge as you move forward.
As startups establish themselves, they often rely on third-party service providers. However, without proper third-party risk management, this can quickly expose a startup to compliance risks they may have been unaware of.
As your startup is preparing for your ISO 27001 certification, be sure to keep in mind that the information security practices of any third parties will also fall within your scope of responsibility. One common pitfall is failing to identify and prioritize these risks early. To overcome and mitigate these risks, many startups opt-in for automation tools that offer built-in third-party risk assessments, helping them stay compliant without added manual effort.
Overcoming budget and resource constraints is one of the most significant challenges for startups who want to get (and stay) ISO 27001 compliant. So, what’s the solution if you only have so many hours in a day, a small team, and a (very) limited budget? Let’s take a look.
We get it; throwing all your efforts into obtaining an ISO 27001 certification may seem like it could disrupt critical business processes, something that you just can’t afford to do. Who says it has to? For startups, in particular, running the ISO 27001 process alongside other business objectives and day-to-day tasks with minimal disruption to your workflow while maintaining a consistent momentum towards achieving ISO 27001 within specific time requirements is critical.
Here’s how to achieve ISO 27001 amidst budget, resource, and time constraints:
For starters, consider your resource implementation. Unfortunately, you can’t just designate anyone with the capacity to manage and maintain your ISO 27001 compliance, so assigning the right people to lead the process is critical. Although start-up teams are comfortable juggling many responsibilities and wearing different hats, without the proper internal experience and expertise – you could potentially spend more time and resources than needed while simultaneously incapacitating your team. Be sure you have a few experts helping you obtain ISO 27001 (hint-hint).
Next, invest in security awareness training. A common pitfall is overlooking employee education, but to truly embed a security-first mindset, your team needs to understand their role in protecting data. It’s also essential to secure executive buy-in. Without leadership support, compliance efforts can lose momentum. Make sure your CEO, CTO, and key stakeholders are aligned on why ISO 27001 matters and how it supports your company’s long-term success.
Finally, plan for the long haul. ISO 27001 isn’t a one-time task – it’s a continuous process. Regular audits, risk reviews, and documentation updates are key to staying compliant and future-proofing your security posture.
Of course, before you dive in, there’s one big question on everyone’s mind: what’s this going to cost? If ISO 27001 expenses are still stressing you out and making you hesitate, let’s take a look at some of the key costs to keep in mind.
We get it. Budgets are tight for start-ups, and every expense needs to be carefully considered. The idea of adding another cost might have you second-guessing. But when it comes to ISO 27001 certification, the cost isn’t set in stone. There are many factors to consider. So, let’s break down what you can expect.
Larger startups with more staff, assets, and complex operations tend to incur higher costs due to the increased scope of audits and the need for more resources.
If your startup already has some security protocols in place, implementing ISO 27001 controls will be less costly. However, if you’re starting from scratch, additional costs for implementation will come into play.
Startups with limited experience or no in-house expert in data security may need to hire consultants or invest in staff training, which adds to the overall cost.
Audit Costs
Other Additional Vendors or Tools
The cost of ISO 27001 certification isn’t just about getting the certification itself; it’s about the whole journey. Key steps include implementing security controls, crafting tailored policies, ongoing training, and regular audits. A crucial part is creating the Statement of Applicability (SoA), detailing chosen controls and their risk management.
Compliance automation solutions like Scytale are now simplifying the entire process, offering everything you need in one place. This streamlined approach not only makes compliance easier but also helps lower associated costs.
So, is it worth it?
With the average cost of a data breach hitting $4.35 million, ISO 27001 is essential. Beyond security, it becomes a requirement in order to attract clients, accelerate sales, and meet industry standards.
For more details, we’ve got you covered with a full breakdown of ISO 27001 certification costs for companies. Now that the burning question of costs is out of the way, let’s get to the fun part (and yes, ISO 27001 can be fun, okay?).
Regardless of the approach you take, achieving your ISO 27001 certification will involve multiple steps. It’s also important to keep in mind that each startup’s journey towards ISO 27001 will look different depending on how prepared they are and the existing state of their ISMS (if any). However, there are a few general guidelines that apply to most ISO 27001 certification processes.
Figure out what parts of your business will be covered by your Information Security Management System (ISMS). Need a quick refresher? Your ISMS is the crux of ISO 27001. This isn’t a one-size-fits-all process, so make sure it’s tailored to your company’s unique needs. Your scope statement will guide the entire implementation process. As you define your scope, also prepare your Statement of Applicability (SoA). This essential audit document is directly tied to your defined scope, outlines the security controls you’ve selected, and notes their implementation status.
A Statement of Applicability should:
Before diving into policy implementation, you’ll need to gauge your ISO 27001 readiness and evaluate your current security posture before an auditor joins the party. You can do this by conducting a gap analysis, a process that helps you test your startup’s existing security practices in relation to ISO 27001 requirements. This gap analysis will highlight areas that need attention, allowing you to prioritize your efforts effectively.
Now that you’ve nailed down your scope and conducted a gap analysis, you should have a much clearer picture of what you need (and how to get it). Step three is all about building a solid ISMS that can confidently pass an external audit, starting with the implementation of relevant policies. This is arguably the most critical step in the process and involves various substages to ensure nothing slips through the cracks.
These policies aren’t cookie-cutter documents – they should be customized to your company’s specific security requirements. Policies you’ll likely need to include are:
To effectively manage risks, you’ll need a clear and solid risk assessment procedure tailored to your organization’s needs. Identify and list your information assets, evaluate risks based on impact and likelihood, and set acceptable risk levels. Document treatment plans, implement controls, and continuously monitor and review your risk management process to keep it effective and up-to-date.
Once your methodology is set, start identifying and evaluating potential security threats. This is more than just spotting risks, it’s all about assessing their impact and likelihood, and deciding how to address them. Whether you choose to avoid, reduce, share, or accept the risk, have a clear plan in place.
The proof is in the pudding, right? And your controls are the sweet stuff. Now, it’s time to put in place the security controls and measures that you defined in your ISMS documentation. However, this step goes far beyond simply implementing the correct access controls and processes.
Hold up. Let’s take it back a notch. For beginners, security controls may feel like a whole new language. In fact, perhaps you’re not even sure which controls apply to your startup. For a closer look into identifying controls for your ISMS, Annex A of the ISO 27001 provides clear guidelines.
ISO 27001 is ultimately about embedding data security into your company’s DNA. At this stage, it’s crucial to create awareness across your entire team and invest in security awareness training to ensure the controls you’ve implemented are used effectively – without unnecessary internal risk. This might feel like a big shift at first, especially for startups, but it’s essential for long-term success.
Now, let’s dive into the audit process – this is where all your hard work pays off. Here’s what you need to know:
When it comes to finding an auditor, your audits (that’s right, there are multiple) must be conducted by a reputable certification body accredited for ISO 27001. Apart from your internal audit, your startup will ultimately undergo four external audits – including surveillance and recertification audits to maintain your certified status – so you’d best make sure you’re teamed up with the right auditor.
After implementation, ongoing monitoring is key. This involves regularly reviewing your policies, procedures, and controls to ensure they’re effective and continue to meet your security objectives.
For first-timers, taking on the ISO 27001 certification journey alone is a risky bet, and one that you don’t have to take. For startups specifically, expert guidance can make or break your compliance. Therefore, it’s best recommended to gauge experts that can help ease the burden and guide you through each and every step. Additionally, delegation is imperative. Be sure to appoint an inhouse project manager who will take the lead in getting your startup ISO 27001 certified.
The number one mistake that many organizations make (from startup to enterprise) is to treat ISO 27001 compliance as if it’s a one-time box to tick. In reality, getting compliant means incorporating certain methodologies into the DNA of your business. Ultimately, the point of putting in all the effort towards getting compliant is to create a security posture that becomes your greatest asset, not a liability. Therefore, in order to leverage the benefits of ISO 27001, you need to ensure that you not only get compliant, but you stay that way, especially through continuous control monitoring.
So, how can startups ensure that all their efforts aren’t in vain?
Most security breaches stay hidden and unidentified until it’s too late. Invest in a continuous monitoring process that allows you to keep tabs on all controls and processes 24/7 to ensure nothing slips through the cracks.
As you scale, it may be more challenging to maintain a security conscious culture within your team. Not only is awareness training a necessary ISO 27001 requirement, but regular and effective training programs are a surefire way to regulate internal risk and maintain consistent compliance.
You don’t have to be an information security compliance guru to stay compliant, but someone has to be. Leveraging the support and guidance from experts in the field is one of the most effective ways to stay compliant while incorporating leading infosec strategies and controls for your specific industry.
If you’re thinking, “Wow, that doesn’t sound like something we can take on by ourselves,” you’re probably right. Getting (and staying) compliant can be an all-consuming process. So then, how can leading startups balance it all while maintaining a bulletproof security posture? Can we let you in on a secret? Most of them don’t. At least not without leveraging automated technology to uncomplicate and lessen the burden. Here’s how.
We don’t need to remind you about the importance of time and resource management. So, in the spirit of saving it – we’ll get to the point: Security compliance was not designed for the faint of heart and regular startup founders don’t have the capacity to train themselves to become designated compliance experts. Fortunately, they don’t have to. Cue ISO 27001 automation.
To do business in a modern and digital landscape, you’ve got to be two things: compliant and fast. Unfortunately, relying on manual processes to get ISO 27001 certified generally encourages error-prone, highly-administrative and time consuming processes. Not only does this drag out the process of getting certified, but it usually disrupts employees’ key responsibilities and delays company growth quite significantly.
Here’s why most startups leverage the power of compliance automation to supercharge their information security.
What if reading this ebook is the most time-consuming thing you have to do within your entire ISO 27001 certification process? At Scytale, we help startups get (and stay) ISO 27001 certified up to 90% faster. Through our smart automation technology, we provide quick, simple and streamlined compliance while teaming you up with designated compliance experts to provide guidance and support every step of the way. Automate the entire process, and gain expert partners in compliance in a few clicks without having to compromise your time or people.
Still not convinced? Here’s a sneak peek at what your timeline could look like with Scytale on your side:
So, there you have it in a nutshell. ISO 27001 is your ticket to trust, data protection, and long-term success in the startup world. While it might seem daunting, the benefits far outweigh the costs and challenges. By automating ISO 27001 with Scytale and following a few simple steps, you can streamline certification, cut down on manual work, and keep your security practices top-notch.
So, roll up your sleeves, get to work, and make ISO 27001 your new best friend. Your future self, and your startup’s bottom line, will thank you. And hey, you can thank us later.
You’re not alone. In fact, here are some of the most common FAQs concerning ISO 27001 compliance for startups.
While ISO 27001 is considered the leading security standard, there are other frameworks or regulations that could apply to your business. A common alternative is SOC 2 compliance.
It is, especially in Europe, making it an excellent choice for startups looking to expand globally.
This depends entirely on the approach you decide on and can vary depending on company size, risk landscape, and whether or not you decide to onboard third-party services or automation tools to help speed up the process.
