Inadequate IT security measures pose enormous risks: an incident such as the failure of a company database due to technical difficulties or inadequate security measures can have devastating consequences. For executives, especially in regulated industries, such incidents can cause significant business disruption and severely damage the trust of customers and business partners. This emphasizes the need to implement contract management software based on an ISO 27001 certified information security management system.
In a world where data security has become an essential necessity, ISO 27001 certification presents itself as an indispensable standard for any information security organization looking to protect its confidential information and customer relationships. As a globally recognized standard for information security management systems (ISMS), certifications such as ISO/IEC 27001 provide best practices for protecting corporate data, which is central to effective contract management strategies. Essentially, the certification states that a company has implemented an internationally recognized and externally audited system to protect confidential information.
This article focuses on the importance of ISO/IEC 27001 certification and explains what it means when companies become ISO certified. This certification signals a serious commitment to the security of information and shows that a company has implemented proven, internationally recognized methods to protect its data. The aim is to provide a clear picture of the security guarantees associated with the certificate and how this can increase confidence in a company's protection measures.
Anecdote
The CEO of a technology start-up, let's call him Gert, recently experienced the consequences of non-ISO 27001-certified software. A data leak, caused by a vulnerability in the form of insufficient authentication protocols, led to the loss of confidential customer data. The result was not only an immediate loss of customers for fear of their personal information being misused, but also a damaged reputation in the market. Investors were alarmed by the apparent lack of organized information security measures, which put Gert's company in trouble.
Gerts' situation underlines the need to implement security standards such as ISO 27001 or to ensure that ISO 27001-compliant software is used to minimize such risks and restore trust.
Ransomware attacks and phishing attempts pose a significant threat to small and medium-sized businesses. In 2023, a total of 68 successful ransomware attacks on businesses were recorded, many of which were initiated by phishing emails specifically targeting banking data. These phishing emails account for a large proportion of all fraudulent emails, underlining the urgency of proactive security measures. Furthermore, data shows that 66% of all spam emails are cyberattacks, including extortion attempts and fraud. In particular, contractual data such as financial terms, business partner information and intellectual property details can be especially valuable to blackmailers and competitors. These figures illustrate how critical a robust IT security strategy is for companies.
Opting for a secure contract management system is therefore crucial for companies. This certification not only ensures the integrity, confidentiality and availability of your valuable data, but also strengthens an organization's resilience to cyber-attacks and other digital threats. In addition, an ISO-certified solution demonstrates a provider's commitment to managing information securely and in accordance with internationally recognized practices . This not only reduces the risk of data misuse and loss, but also minimizes business and legal risks and associated costs. In addition, the use of such software promotes the trust of your customers and business partners by showing them that you take data protection and compliance very seriously. An investment in ISO 27001-certified contract management software is therefore a clear commitment to security and reliability that is recognized far beyond a company's borders.
The certification serves as an important indicator that a company organizes and manages its information security practices according to internationally recognized standards. With an ISO 27001-certified organization, it can be assumed that:
1. a robust information security management system (ISMS) is established and continuously reviewed for effectiveness. This system includes policies, processes and procedures designed to protect all information - from customer data to trade secrets.
2. regular risk analyses are carried out to identify and close security gaps. The organization has developed mechanisms to systematically assess risks and take appropriate measures to address current and future risks at an early stage.
3. promote a strong awareness of security and appropriate training for all employees, ensuring that staff understand the importance of information security and implement it in their day-to-day work.
4. security measures are implemented at all organizational levels, including technical, organizational and physical measures that demonstrate a comprehensive commitment to the protection of sensitive data and systems.
5. compliance with external regulations and legal requirements is ensured, which is of great importance in regulated industries. Certification helps organizations to effectively meet compliance requirements such as the GDPR.
ISO 27001 certification therefore provides assurance that an organization takes security in the processing and protection of data very seriously, which not only strengthens security but also trust in business relationships. These elements confirm that an organization not only ensures the security of data, but also promotes a culture of continuous improvement and proactive risk management. This trust is critical to building and maintaining strong business relationships in an increasingly digitized world.
The costs for ISO 27001 certification can vary greatly depending on the size of the company and the complexity of the existing structures. The costs listed below are therefore indicative. Certification consists of several phases, each of which entails costs:
Certification is valid for three years: certification itself is carried out in the first year, followed by surveillance audits in the second and third years. Recertification at the end of the three years incurs additional costs. Overall, a company should therefore not only factor in the one-off costs, but also the follow-up costs.
ISO 27001 certification is particularly relevant for companies operating in critical infrastructures (KRITIS). These sectors include healthcare, energy, transportation, finance, telecommunications and government institutions. For such companies, proof of IT security is required by law in accordance with Section 8a BSIG.
In addition, companies outside the KRITIS sectors also have an obligation to prevent economic damage and legal violations. Those responsible in stock corporations and limited liability companies are required by the German Stock Corporation and Limited Liability Companies Act to minimize risks caused by inadequate IT security measures. While certification is not mandatory for these companies, it is a recognized method of ensuring security standards and avoiding legal risks.
The certification process can be divided into three phases. The duration depends on the size of the company and the measures already implemented. Small companies can achieve certification within 6 months, while large companies can take longer than a year. For this reason, the values given are only intended as guidelines:
The overall duration depends heavily on the status of the company, the internal organization and the security measures already in place. Companies with an existing ISMS can significantly shorten the initiation processes in particular.
You may also be interested in...
Fast, secure, efficient: create loan agreements with templates
Contract automation: How modern technologies optimize process automation
Recognizing and avoiding contractual risks: What to look out for?
.svg){kind=logo}
_EasiestSetup_EaseOfSetup.avif)
