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Definition of ISO 27001

ISO 27001 is an internationally recognized standard for information security management systems (ISMS) developed by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). It provides a systematic approach to managing sensitive company information, ensuring its confidentiality, integrity, and availability. This standard helps organizations identify and manage security risks, implement security controls and policies, and continually improve their security posture. By achieving ISO 27001 certification, organizations demonstrate their commitment to protecting sensitive information and meeting the highest security standards. The certification process involves several steps, including conducting risk assessments, implementing security measures, and undergoing audits by accredited certification bodies. Obtaining ISO 27001 certification can bring numerous benefits, such as enhanced customer trust, improved security controls, and compliance with regulatory requirements. However, it is essential to understand the typical costs associated with ISO 27001 certification before embarking on the certification journey.

Overview of certification process

The ISO 27001 certification process involves several steps to ensure an organization meets the requirements of the international standard for information security management systems. Here is an overview of the process:

  1. Documentation Review: The certification journey begins with a review of the organization's documentation, including security policies, risk assessments, and implementation plans. This step helps identify any gaps or areas that need improvement.
  2. Site Audit: Once the documentation review is complete, an external auditor or an independent consultant conducts an on-site audit to assess the organization's security controls, measures, and processes. This audit typically involves interviews with key personnel, inspections, and tests.
  3. Certificate Issuance: After successfully completing the site audit and addressing any non-conformities, the organization receives the ISO 27001 certificate. This certification demonstrates adherence to the international standard for information security management systems.

The duration of the ISO 27001 certification process can vary depending on the size and complexity of the organization. Smaller organizations may complete the process within a few months, while larger organizations may take several months or even longer to complete all the necessary steps.

Cost breakdown

Obtaining ISO 27001 certification involves various costs, which are essential for organizations aiming to enhance their information security management systems. The cost breakdown includes both monetary and non-monetary aspects. Monetary costs typically involve expenses related to consultancy services, compliance software, employee training, and audit fees. The costs associated with consultancy services and compliance software depend on the complexity and size of the organization, as well as the current maturity level of their security posture. Likewise, the expenses for employee training may vary based on the number of staff members requiring training. The audit fees cover both the initial certification audit and subsequent surveillance audits that take place during the three-year certification period. Non-monetary costs involve the time and effort required from the organization's internal team to implement and maintain the necessary security measures and controls. The total cost of achieving ISO 27001 certification varies depending on these factors but should be considered as an investment in the organization's security and reputation.

Initial certification audit

The initial certification audit is a crucial step in obtaining ISO 27001 certification. It consists of two main steps: the documentation audit and the field review.

During the documentation audit, the certification body assesses the organization's information security management system (ISMS) documentation for compliance with the ISO 27001 standard. This involves reviewing policies, procedures, risk assessments, security controls, and other relevant documents. The certification body evaluates the organization's overall security posture and assesses the alignment of its processes with the standard's requirements.

Following the documentation audit, the field review takes place. This involves the certification body conducting on-site visits to validate the effectiveness and implementation of the ISMS. The auditor examines the organization's security measures, interviews staff members, and assesses the organization's compliance with the standard's requirements. The purpose of the field review is to gather evidence and verify that the ISMS is functioning as intended.

Once both steps are completed, the certification body creates an audit report, summarizing the findings from the documentation audit and field review. This report includes any non-conformities or areas for improvement that need to be addressed before certification can be granted. The organization then has an opportunity to rectify these issues and undergo a follow-up audit, known as the certification audit, to demonstrate their compliance with the ISO 27001 standard.

Internal audits

Internal audits are a crucial component of the ISO 27001 certification process. These audits help organizations assess their readiness for the external audit, monitor the effectiveness of their Information Security Management System (ISMS), and identify areas for corrective actions.

During internal audits, organizations evaluate their own compliance with the ISO 27001 standard. Internal auditors review the organization's policies, procedures, risk assessments, security controls, and other relevant documents to ensure they align with the requirements of the standard. This allows organizations to identify any gaps or deficiencies in their ISMS and take necessary corrective measures.

Internal audits also serve as a preparation for the external certification audit. By conducting regular internal audits, organizations can identify and address any non-compliance issues before the external audit. This helps ensure a higher chance of successful certification and minimizes the risk of potential failures or delays.

Furthermore, internal audits help organizations monitor the effectiveness of their ISMS on an ongoing basis. These audits provide a systematic and objective evaluation of the ISMS's performance, identifying areas of improvement and uncovering any potential security risks or vulnerabilities.

Surveillance audits and recertification audits

After the initial certification of ISO 27001, organizations need to undergo surveillance audits and recertification audits to maintain their certification.

Surveillance audits are periodic assessments conducted by the certification body to verify ongoing compliance with the ISO 27001 standard. These audits typically occur annually, although the frequency may vary depending on the certification body and the organization's specific circumstances. The purpose of surveillance audits is to ensure that the organization continues to meet the requirements of the standard and to assess the effectiveness of the Information Security Management System (ISMS).

During surveillance audits, the auditor evaluates the implementation of security controls, reviews documentation, interviews employees, and assesses the overall security posture. The scope of these audits may focus on specific areas of improvement identified during previous audits or cover the entire ISMS.

In addition to surveillance audits, organizations must undergo recertification audits every three years to maintain their ISO 27001 certification. Recertification audits are similar to the initial certification audit, where the certification body conducts a comprehensive assessment of the organization's ISMS to ensure continued compliance with the ISO 27001 standard. The costs associated with these audits vary depending on factors such as the size and complexity of the organization, the number of office locations, and the audit days required. It is advisable to contact certification companies directly to obtain accurate information on the costs of surveillance audits and recertification audits.

Risk assessments

Risk assessments are a vital component of the ISO 27001 certification process. These assessments involve identifying and evaluating potential security risks that an organization may face, with the aim of developing effective controls to mitigate these risks.

To conduct risk assessments for ISO 27001 certification, organizations typically follow a systematic approach. This involves:

  1. Identifying assets: Organizations identify all their information assets, including physical and digital assets, as well as data and systems.
  2. Identifying threats: Next, organizations identify potential threats that these assets may face, such as unauthorized access, data breaches, or natural disasters.
  3. Assessing vulnerabilities: Organizations assess the vulnerabilities of their assets, which can include weaknesses in physical security, outdated software, or lack of employee training.
  4. Analyzing risks: Organizations analyze the likelihood and impact of potential risks arising from the identified threats and vulnerabilities.
  5. Implementing controls: Based on the risk analysis, organizations implement appropriate security controls to reduce or eliminate identified risks.
  6. Monitoring and reviewing: Organizations continually monitor and review their risk management processes to identify any new risks or changes that may require additional controls.

While organizations can conduct risk assessments internally, it is recommended to hire third-party experts for an objective and thorough evaluation. Additionally, penetration tests and vulnerability tests should be performed by these external parties. These tests simulate real-world attacks and vulnerabilities to assess an organization's security posture.

Hiring third-party experts for penetration and vulnerability tests is crucial as it brings several advantages. These experts possess specialized knowledge and experience in identifying potential security weaknesses and providing recommendations for improvement. By outsourcing these tests, organizations ensure a more impartial evaluation, as internal teams may overlook certain vulnerabilities due to bias or familiarity with the systems.

The cost of penetration and vulnerability tests can vary based on several factors, including the size and complexity of the organization's infrastructure, the number of systems and applications to be tested, the level of analysis required, and the expertise of the testing firm. Additionally, the geographical location and the reputation of the testing firm can also influence the costs. Despite the potentially high costs, third-party testing is a worthwhile investment as it helps organizations identify and mitigate security risks before they result in costly breaches or non-compliance with ISO 27001 standards.

Security controls, policies and vulnerability assessments

In the ISO 27001 certification process, security controls, policies, and vulnerability assessments play a crucial role in enhancing information security and ensuring compliance with international standards.

Security controls are the measures and safeguards put in place to protect sensitive information and mitigate risks. These controls can include access control mechanisms, encryption protocols, and intrusion detection systems. By implementing appropriate security controls, organizations can safeguard their assets and reduce the likelihood of security incidents.

Policies are the guidelines and procedures that define how an organization manages its information security. These policies provide a framework for addressing risks and ensuring consistency in security practices. They outline the responsibilities of employees, define acceptable use of resources, and establish incident response protocols. Having well-defined and enforced security policies helps organizations maintain a strong security posture and demonstrate commitment to protecting their information assets.

Vulnerability assessments are systematic evaluations that identify weaknesses and potential vulnerabilities in an organization's infrastructure, systems, and processes. These assessments help organizations proactively identify and address security gaps before they can be exploited. By regularly conducting vulnerability assessments, organizations can prioritize and implement necessary security measures to mitigate risks effectively.

To address these security control, policy, and vulnerability assessment requirements, organizations may need specific software solutions. These software solutions can automate risk assessments, vulnerability scanning, and incident management processes. They help organizations streamline their compliance efforts, detect and respond to security issues in a timely manner, and maintain a robust information security program.

Implementation costs

Implementation costs for ISO 27001 certification can vary depending on the size and complexity of the organization. These costs typically include conducting risk assessments, developing security policies and procedures, implementing security controls, and providing employee training.

Organizations may need to invest in the services of an independent consultant or allocate internal resources to manage the implementation process. This can include the cost of hiring or dedicating a team to oversee and coordinate the implementation efforts.

Other implementation costs can include conducting vulnerability assessments, penetration tests, and other security assessments to identify and address any vulnerabilities or gaps in the existing systems and processes.

In addition to implementation costs, there are ongoing expenses associated with maintaining an effective Information Security Management System (ISMS). This includes conducting regular security awareness programs to educate employees about security risks and best practices.

External audit and certification costs are also ongoing expenses as organizations need to undergo surveillance audits and recertification audits periodically to maintain their ISO 27001 certification.

Security management software costs

When pursuing ISO 27001 certification, organizations may need to invest in security management software to ensure a robust information security management system. The costs associated with such software will vary depending on the specific needs identified during the gap analysis.

One potential cost is network security monitoring software, which allows organizations to actively monitor their network for any suspicious activity or potential breaches. This software can help detect and respond to security incidents in real-time, but it may come at a significant price depending on the scale and complexity of the network.

Another cost to consider is vulnerability scanning software, which helps identify potential vulnerabilities in an organization's systems and applications. This software can automate the scanning process and generate reports on any vulnerabilities found. Again, the cost will depend on the size of the organization and the complexity of its IT infrastructure.

Some organizations may opt for an all-in-one security suite that includes various security management features, such as network monitoring, vulnerability scanning, encryption tools, and more. This type of software can streamline the management of security controls and simplify the certification process, but it may come with a higher price tag compared to individual software solutions.

Additionally, organizations may choose to invest in compliance software specifically designed to support ISO 27001 certification. This type of software can help streamline the compliance process, provide expert guidance, and offer templates and tools for documentation and record-keeping. The cost of compliance software will vary depending on the specific features and level of support provided.

Additional costs for successful implementation

Additional costs for the successful implementation of ISO 27001 certification can include several factors. First, organizations will need to invest in training programs to ensure that employees understand the requirements and best practices of ISO 27001. This training can range from basic awareness sessions to in-depth workshops for key personnel, and the cost will depend on the size and complexity of the organization.

Another significant cost is the external audit and certification fees. Organizations are required to engage a certification body to conduct an audit and issue the ISO 27001 certification. These fees can vary depending on the size of the organization and the scope of the audit.

Hiring a dedicated implementation team or external consultants to guide the organization through the certification process is another potential cost. These experts can provide guidance, develop security policies and procedures, conduct risk assessments, and help achieve compliance with ISO 27001.

Ongoing productivity costs should also be considered. Maintaining compliance with ISO 27001 requires continuous monitoring, regular audits, and updates to security controls and policies. These activities can result in productivity costs, as employees may need to dedicate time to compliance-related activities rather than their primary job responsibilities.

Lastly, organizations may need to invest in software licenses to achieve compliance. This can include tools for managing security controls, vulnerability scanning, documentation, and record-keeping. The cost of these licenses will depend on the specific software chosen and the size of the organization.

Average cost estimates for ISO 27001 certification

Obtaining ISO 27001 certification is a crucial step for organizations looking to demonstrate their commitment to information security. However, it's essential to consider the costs involved in the certification process. The average cost estimates for ISO 27001 certification can vary depending on several factors, including the size and complexity of the organization, the level of expertise required, and ongoing maintenance costs. These costs typically include the internal resources allocated for implementing security controls, the fees for external audits and certification, hiring consultants or dedicated implementation teams, ongoing productivity costs, and investment in compliance software licenses. Understanding these average cost estimates can help organizations plan their budget and ensure a successful implementation of ISO 27001.

Small businesses (<50 Employees)

For small businesses with fewer than 50 employees, the cost of ISO 27001 certification can be more affordable compared to larger organizations. The cost breakdown for ISO 27001 certification typically includes several factors.

First, there are the initial certification costs, which encompass activities such as risk assessments, vulnerability assessments, and the development and implementation of security controls and policies. Smaller businesses may have fewer security risks and protocols to address, which can contribute to lower costs in this area.

Second, there are the costs associated with the certification process itself. This includes the fees charged by the certification body for conducting the certification audit, as well as any additional costs for audit days and documentation review.

Third, ongoing costs may be incurred for maintaining the certification. This includes surveillance audits, usually conducted annually, to ensure compliance with the ISO 27001 standard. Recertification audits are typically required every three years.

It's important to note that the cost of ISO 27001 certification can vary depending on the size, complexity, and specific needs of the organization. However, for small businesses with fewer than 50 employees, costs are generally on the low end of the spectrum. On average, smaller businesses can expect to spend around $6,000 for ISO 27001 certification.

Medium businesses (50-250 Employees)

For medium businesses with 50-250 employees, the cost breakdown for ISO 27001 certification can vary based on several factors. On average, the estimated certification cost ranges from around $6,000 to $40,000.

The number of audit days, which include both Stage 1 (documentation review) and Stage 2 (on-site audit), typically ranges from 3 to 7 days. The size of the organization also plays a role in determining the number of audit days required.

Medium-sized businesses may have moderate security risks and protocols to address, making the certification process relatively straightforward compared to larger organizations. However, due to the larger employee base and potential complexities in the security management system, the costs can be higher than for smaller businesses.

In addition to the certification cost and audit days, ongoing costs are also a consideration. This includes surveillance audits, usually conducted annually, to ensure continued compliance with the ISO 27001 standard. These audits help maintain the security posture of the organization and ensure that the implemented security measures are effective.

It's important to note that larger organizations with more security risks and the need for additional security measures may incur higher costs compared to medium-sized businesses. The size of the organization and the complexity of its security management system are significant factors in determining the overall cost of ISO 27001 certification.

Large businesses (>250 Employees)

For large businesses with over 250 employees, the cost of obtaining ISO 27001 certification can be significantly higher compared to smaller organizations. This is primarily due to the increased security risks and the need for more extensive security measures.

The certification cost for large businesses can range from $40,000 or more. This cost includes the fees charged by the certification body, as well as the expenses associated with the certification process such as risk assessments, vulnerability assessments, and the implementation costs of security controls and policies.

The number of audit days required for large organizations may vary depending on the complexity of their security management systems. Typically, the audit process for large businesses can take anywhere from 5 to 7 days. This includes both the Stage 1 and Stage 2 audits.

It's important to note that the estimated certification costs for large businesses may also depend on the size of their workforce, the number of office locations, and the current maturity level of their security posture. Organizations with more employees and multiple office locations may require additional resources and time for successful implementation.

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