Cybercrime is on the rise and getting more sophisticated. It’s no wonder organizations worldwide are making cybersecurity their top priority. It’s also why ISO 27001 has become a framework of choice for many businesses seeking to protect sensitive data.
However, understanding the costs associated with ISO 27001 certification can be challenging. The price tag varies significantly based on your company’s size, your chosen approach to implementation, and other factors.
Here we break down what you can expect to pay. We’ll also explore ways to optimize your investment, starting with why any organization, regardless of industry, should consider ISO 27001 certification.
What Is ISO 27001 and Why Does It Matter?
ISO 27001 was developed by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). It provides a detailed framework for creating, managing, and updating an Information Security Management System (ISMS). An ISMS is a set of processes, policies, and controls that help an organization manage information security risks.
Organizations get ISO 27001 certifications to:
- Build trust, as the certification demonstrates to clients and partners that you take data protection seriously.
- Meet the expectations of enterprise clients and government agencies that require ISO 27001 certification.
- Improve security practices through processes that identify and address vulnerabilities.
- Gain recognition beyond regional standards for companies operating across borders.
- Align with data protection regulations that have similar requirements.
While ISO 27001 certification provides many benefits, it does require a significant investment.
How Much Does ISO 27001 Certification Cost?
The total cost of ISO 27001 certification can range anywhere from just a few thousand dollars to close to $100,000, depending on your organization’s size, complexity, and approach.
When budgeting for ISO 27001 certification, keep in mind both direct and indirect costs. Direct costs include expenses for external auditors, consultants, compliance software, and security tools. Indirect costs involve internal staff time, potential productivity losses, and ongoing maintenance of your ISMS.
Cost Breakdown by Certification Stage
The ISO 27001 certification process involves multiple stages, each with its own set of costs. Here’s what you can expect to pay at each phase of the journey.
Preparation Costs
Before you can pursue certification, you’ll need to lay the groundwork for your ISMS. Here, you’ll define the scope of your ISMS, identify sensitive information storage locations, conduct risk assessments, and implement policies and controls to mitigate identified risks.
Preparation costs typically include:
- The official ISO 27001 requirements documentation costs 132 Swiss francs direct from ISO, or about $168 total.
- Gap analysis costs typically range from $5,000 to $8,000 for an assessment that identifies where your current security measures fall short of ISO 27001 requirements.
- Penetration testing and vulnerability assessments cost $2,000 to $20,000, depending on the complexity of your systems and the thoroughness of the testing.
- Internal audits to prepare for outside audit may cost you nothing in direct costs or add up to $6,000, depending on whether you conduct it in-house or hire an external auditor.
Implementation Costs
Once you understand the tasks ahead, you’ll move into the implementation phase. Costs at this stage typically include:
- Employee training for $15,000 or more, depending on the number of staff to be trained.
- Security software and tools, priced at $10,000 or more, depending on your specific security stack needs (e.g., network monitoring, vulnerability scanning, encryption tools).
- Consultant support, ranging from approximately $30,000 to $38,000, for guidance throughout the implementation process.
- Productivity impacts, while harder to quantify, include the time your team spends implementing controls and documenting processes, and represent a significant investment.
Companies with mature security practices may find they need to spend less, while others might require more substantial investments to meet ISO 27001 requirements.
Certification Audit Costs
The certification process itself involves several audits, each with its own cost:
- The costs of Stage 1 and Stage 2 audits (initial certification) can range from $3,000 to $16,000, depending on the company’s size and complexity.
- Surveillance audits (years 1 and 2), which are typically less intensive than the initial certification audit, can cost between $12,000 and $15,000 for both years combined.
- Recertification audits (year 3) are similar in scope to the initial certification audits and can also cost $3,000 to $16,000.
Several factors influence audit costs.
- Company size: Larger organizations with more employees and locations face higher audit fees.
- Auditor selection: “Big Four” firms (PwC, Deloitte, Ernst & Young, KPMG) charge premium rates compared to boutique auditing firms.
- Geographic location: Audit costs vary by region and country.
- ISMS complexity: More complex systems require more extensive auditing.
When choosing an auditor, consider both cost and reputation. While a Big Four firm might charge more, its certification carries significant weight with clients and stakeholders.
Certification Options and Their Costs
Different ISO 27001 certification approaches come with different cost implications.
DIY (Do-It-Yourself)
Taking a DIY approach to ISO 27001 certification may seem like the most cost-effective option at first glance. However, when you factor in the internal team’s time, the true cost becomes apparent.
In the DIY approach, direct costs are confined to audit fees. However, indirect costs may add up to $20,000 to $40,000 or more in staff time, even for small firms.
The pros of the DIY include complete control over the process and the advantages of building internal expertise. The cons include potentially longer timelines, a higher risk of mistakes, and company resources diverted from core business functions.
Hiring a Consultant
Engaging an ISO 27001 consultant is a common practice, particularly for organizations lacking internal expertise. Consultants often take on the heavy lifting, such as documentation and internal audits. This frees your team to focus on their key responsibilities.
Typical costs range from $30,000 to $40,000 for consultancy fees. The pros of the consultant approach include expert guidance, faster implementation, fewer mistakes, and reduced internal resource requirements. Cons include higher upfront costs and potential ongoing dependency on external expertise.
Using GRC or Compliance Platforms
Governance, Risk, and Compliance (GRC) platforms can help streamline the certification process. These platforms can work well for mid-sized organizations that have some internal security expertise but also have limited resources for full documentation management.
Platform costs can range from around $3,000 to something under $10,000 annually. The Pros of the GRC approach include structured processes, templates for policies and procedures, simplified documentation management, and more.
On the downside, the GRC approach may still require consultant support for complex requirements in addition to ongoing subscription costs.
Compliance Automation Services
Compliance automation services, such as Secureframe and Vanta, offer a hybrid approach that combines software with expert support.
Costs for this approach vary based on company size and service level, typically with subscription-based pricing. Companies may benefit from significant time and cost reductions. Still, organizations with highly specialized or complex security requirements may find such services unsuitable.
Startups and SaaS companies with smaller teams gain value from these services through a mix of automation and expert knowledge.
Cost Variations by Company Size
Your organization’s size significantly impacts its ISO 27001 cost.
Small companies with fewer employees and simpler information systems will naturally incur lower certification costs, while larger enterprises with multiple locations and complex systems will require more substantial investments.
As a rough guide, consider that a smaller company might get away with certification costs of $6,000 to $10,000. A medium-sized organization (with 50 or so employees) may spend upwards of $40,000 for initial certification. And enterprise-level companies (hundreds of employees) might invest $75,000 or more. These ranges account for direct costs, such as audits and consultants, as well as internal resource allocation.
If you’re a large organization, consider a phased approach to certification, starting with the most critical business units or systems to keep costs manageable.
How to Save on ISO 27001 Certification Costs
While ISO 27001 certification represents a significant investment, a few strategies can help you make the most of your budget.
- Use automation tools to reduce consultant hours and internal time.
- Bundle audits through vetted providers. Some compliance platforms include audit costs in their subscription fees, potentially reducing costs.
- Consider using a certified managed security service provider (MSSP). Working with an already-certified managed cybersecurity provider can sometimes reduce the need for your own certification if your primary concern is meeting client requirements.
Hidden & Ongoing Costs to Budget For
Here are some of the not-so-obvious and ongoing costs associated with ISO 27001 certification to be aware of.
- Staff time diversion, with team members working on certification while spending less time on product development, operations, and other core business functions.
- Ongoing monitoring and maintenance of your ISMS, adding costs for regular reviews, updates to policies and procedures, and security control testing.
- Training refreshers require periodic security awareness sessions to maintain staff compliance with certification requirements.
- Internal audits must be conducted regularly between certification audits to ensure continued compliance with standards.
- Surveillance audits are required for years one and two after certification (typically $6,000 to $7,500 for each year), and a recertification audit is required in the third year (anywhere from $3,000 to $16,000, depending on company size and complexity). Combined, expect to budget $15,000 to $31,000 for ongoing audit costs over the three-year period following certification..
FAQs About ISO 27001 Certification Costs
Is ISO 27001 expensive?
ISO 27001 certification does require a significant investment, with costs scaling with company size and complexity. Small organizations can achieve certification for as little as $6,000, while larger enterprises might spend ten times that amount or more. The return on investment comes through an improved security posture, access to new markets, and enhanced client trust.
What is the ISO 27001 audit cost?
The initial certification audit (Stages 1 and 2 combined) typically costs between $3,000 and $16,000, depending on your organization’s size, complexity, and choice of certification body. Subsequent surveillance audits cost less, perhaps half the initial amount.
Is ISO 27001 certification worth it?
For most organizations handling sensitive data, ISO 27001 certification delivers strong ROI through:
- Expanded business opportunities with clients requiring certification
- Reduced risk of costly data breaches
- Streamlined security processes
- Competitive advantage in security-conscious markets
- Enhanced stakeholder trust
How long does ISO 27001 certification take?
The certification timeline will vary based on your organization’s size and complexity. Small to medium-sized businesses typically require four months for audit preparation, plus an additional two months to complete the certification process. Larger organizations might need a year or more for the whole process.
Finding the Right ISO 27001 Certification Partner
Selecting the right partner for your ISO 27001 journey can help you get it right the first time while also potentially lowering your certification costs. Here’s how to choose.
- Ensure your chosen auditor is accredited by a recognized accreditation body.
- Partner with a team that brings proven knowledge of the security concerns and compliance standards your organization faces.
- Assess the level of ongoing support provided after certification based on your needs, including for assistance with surveillance audits and maintenance of your ISMS.
- Look for partners who provide clear, detailed pricing to reduce the risk of unexpected costs.
At Xantrion, we understand the challenges of ISO 27001 certification and offer ISO 27001 consulting & compliance services tailored to your organization’s specific needs. Our team can guide you through every step of the certification process, from initial gap analysis to successful audit completion.
To learn more about ISO 27001 and whether it’s right for your organization, explore our resources on What is ISO 27001? and Who Needs ISO 27001?, or contact us for a consultation to discuss your specific needs.
