What is ISO 27001 and why should your business care?

In our digital age, every business relies on data — whether you run a complex tech startup, a law firm, a beauty parlour or a plumbing company. From customer details to invoices, supplier contracts to emails and social media… all of it needs to be kept safe.

Cyber threats aren’t just a big-business problem. Small businesses are just as much at risk. In a recent survey of 600 SME owners*, we found that 14.4% had experienced a cyber-attack on their business. With over 5.5 million SMEs in the UK, that means nearly 800,000 business owners have already faced a cyber-attack.

That’s where ISO 27001 comes in. If your business handles sensitive information — like Personally Identifiable Information (PII) including email addresses, credit cards or phone numbers — you’ll want to get in the know.

ISO 27001 is the gold standard for information security, and despite its numerically-heavy name, it’s not as daunting as it sounds.

Learn more about how to keep your business cyber-safe.

What is ISO 27001?

In a nutshell, ISO 27001 is an internationally recognised framework for information security management. It’s not just about your IT setup — ISO 27001 covers people, processes and tech to keep your data protected.

ISO 27001 comes to us from the International Organization for Standardization (ISO) — an independent, non-governmental body that develops and publishes global standards to ensure quality, safety and efficiency across multiple industries.

Founded in 1947, ISO brings together national standardisation bodies from over 170 countries. ISO standards cover everything from cyber-security and data protection (ISO 27001) to food safety (ISO 22000), healthcare (ISO 7101) and environmental management (ISO 14001).

Collaborating with industry experts, government bodies and academics, the ISO team develop voluntary best practice frameworks. And while they’re not required by law, many businesses adopt them because they can help build trust with customers and partners.

Businesses with an ISO 27001 accreditation show they take their data management and cyber-security really seriously.

Why is ISO 27001 important?

Cyber threats are ever-present. From phishing emails to social media scams, and trojan viruses to DDoS attacks, any business can be a target. Statistics from Salford University show that 43% of cyber-attacks target SME businesses and of those victims, 60% go out of business within six months.

This is where ISO 27001 accreditation comes into its own. ISO 27001 is all about proactive cyber-security. It provides a structured framework to help businesses identify, assess and reduce security risks — essentially making it harder for hackers to exploit weaknesses.

Cyber-attacks reportedly cost the UK economy approximately £27 billion every year, for the average business, that’s around £4,200 for an attack. But in reality, the cost is far greater if you consider the reputational damage your business could suffer and any regulatory fines for breaching GDPR laws, for example.

Among other things, ISO 27001 requires businesses to conduct regular risk assessments to find potential vulnerabilities in their tech set-up and helps businesses put preventative measures in place before cyber-criminals can take advantage.

It also encourages businesses to create strict security policies covering access controls, password management and encryption. There’s also a focus on training employees to follow best practices, reducing the risk of human error — which causes as many as 88% of breaches, according to one study.

These safeguards can mean fewer disruptions from cyber incidents, reducing your business downtime and potential financial losses. It also provides businesses with a competitive advantage, helping clients and partners feel safe working with accredited businesses.

Getting accredited doesn’t make a business hack-proof, but it can significantly reduce the risk of a breach by ensuring strong security practices, employee awareness and a watertight incident response plan.

How to get ISO 27001 accredited: a step-by-step guide

This all sounds interesting, but how do you get accredited? Firstly, you’ll want to pull together a crack squad of internal stakeholders to form your ISO team who will manage your accreditation process from start to finish. You’ll want to nominate one person to lead the process and some key team members to support. This team will:

1. Understand the requirements

ISO 27001 is built around an Information Security Management System (ISMS) — a structured framework that helps businesses identify, manage and reduce their security risks.

An ISMS is like a security blueprint for your business’s data. It’s a structured approach to managing sensitive information, ensuring it stays safe from threats like cyber-attacks, leaks and unauthorised access.

It’s made up of policies, procedures and controls designed to protect information in all its forms — whether digital, physical or cloud-based. It includes risk assessments, access controls, encryption, incident response plans and staff training. The goal is to create a security-conscious culture where data protection is built into everyday operations.

Rather than relying on one-off security measures, an ISMS provides a continuous cycle of monitoring, improvement and adaptation, helping businesses stay resilient against evolving threats.

2. Assess your risks

Before putting any security measures in place, you need to identify where your business is vulnerable. To do this, you’ll need to conduct a risk assessment pinpointing any weak spots in your IT systems, processes and even within your team who might fall for a phishing scam.

It’s important to consider both internal and external threats. This could be an accidental data leak — like sharing a spreadsheet you shouldn’t, to putting customer emails on cc rather than bcc when sending out a mass email — to a targeted cyber-attack.

You’ll want to prioritise the risks based on their potential impact and the likelihood they’ll happen, so you can focus on the most critical areas first.

3. Put security controls in place

Once you know your vulnerabilities, it's time to put your security measures in place to protect your sensitive information. This could include mandating multi-factor authentication, implementing data encryption or securing your server rooms.

The goal is to build layers of protection so that even if one security measure fails, others remain in place.

4. Train your team

Even the best security systems can fail if employees don’t follow the rules. Regular training can help staff spot phishing attempts, avoid weak passwords and handle sensitive data properly, embedding security into your company culture.

5. Document everything

If you didn’t write it down, did it even happen? To achieve ISO 27001 accreditation, businesses have to maintain detailed documentation to prove their compliance. This includes security policies and procedures, incident response plans, risk assessment and training records.

6. Get an external audit

Once all your security measures are in place, you’ll need an external accreditation body to audit your business and confirm you comply with ISO 27001. The process is typically done in two stages. The first is a full review of all your documentation, assessments and controls. The second is a full security audit, where it’s verified that everything is working as it should.

On average it takes between three to 12 months to achieve ISO 27001 accreditation, depending on your business size, complexity and the security measures you already have in place. Once you get accredited, it’s valid for three years, with annual surveillance audits ensuring continued compliance.

How does ISO 27001 help your business?

ISO 27001 is all about building a strong cyber-security culture within your business. It helps in the prevention of data breaches, can build customer trust and keeps your business compliant with regulations like GDPR.

ISO 27001 can also open doors to new opportunities — as some contracts, especially those with big firms or with government bodies, require ISO 27001 accreditation — and can prevent costly mistakes. A strong security system can reduce the risk of data breaches which might lead to reputational damage and regulatory fines.

It might seem like a lot of work to get accredited, but if your business handles sensitive or PII data, the long-term benefits can make it a smart investment worth considering. A first step could be to get yourself covered by complementary business insurance. There are two covers worth considering.

Cyber insurance, also known as cyber liability insurance or cyber-security insurance, is designed to cover any business operating online or exposed to the internet and the risks that come with storing and handling data when running a business. Businesses can be covered for several cyber-related risks including accidental privacy breaches, hacking, extortion, ransomware, lost income and the restoration of data.

If your business gets hacked, you’ll likely suffer trading downtime. This is where business interruption insurance comes in. This type of insurance can cover loss of revenue following an unexpected event, like a cyber-security incident, as well as the additional costs you might face to get your business up and running again.

• Research methodology: 600 SME owners were surveyed across the UK via Attest.