C-Suites and Boards of Directors face a balancing act between managing risk and driving growth. At the same time, companies must meet regulatory requirements and protect against data breaches. Cyber threats are increasing in both volume and sophistication.
Healthcare and IT services were the two sectors most frequently the target of cyberattacks in 2024. The average cost of a data breach have reached $4.88 million. Businesses cannot afford to overlook the potential repercussions of implementing insufficient cybersecurity measures.
As a framework for addressing information security risks, organizations look to the International Organization for Standardization (ISO) 27001 accreditation. ISO certification offers a methodical approach to handling private client and business data.
Let’s examine the return on investment (ROI) of hiring ISO 27001 consultants and the range of advantages they may offer businesses.
Why Does ROI Need to Be a Priority in All Business Decisions?
Businesses utilize return on investment (ROI) as a performance metric to evaluate the success and profitability of their investments. One way to compute it as a percentage is to divide the net profit by the investment cost. To put it simply, return on investment (ROI) quantifies the amount of benefit or return an organization gets from a specific investment.
An investment with a high return on investment (ROI) is profitable; one with a poor ROI, might not be making enough money to pay for itself. Organizations give top priority to return on investment (ROI) while making business decisions to guarantee if investments pay off and promote company advancement.
The same applies to the costs incurred for ISO 27001 consultancy. Companies should assess if implementing ISO standard yields ROI before devoting time and resources to get certified.
How Is ROI Increased by Investing in ISO 27001 Consulting?
Here are methods that businesses can boost return on investment by hiring ISO 27001 consultants.
Calculate the Reduced Risk and Enhanced Resilience.
Assisting enterprises in identifying and reducing any threats to their information security is one of ISO 27001’s main goals. By putting ISO 27001 into practice, you can proactively stop cyberattacks and data breaches.
The potential costs associated with these incidents—such as legal fees, fines, and damage to one’s reputation—are reduced as a result. Calculating the reduction in these risks helps businesses understand the return on investment (ROI) of implementing ISO 27001.
Through ISO 27001 certification, businesses can increase their resistance against cyberattacks by following secure practices and rules. Downtime and the costs associated with IT interruptions are thereby reduced. Another asset for a business is its reputation and ISO 27001 certification improves it.
Decreased Information Security Incident Costs
The average cost of a data breach reached $4.88 million increasing 10% every year. The expense is made up of indirect expenses like lost business prospects and reputational harm as well as direct expenditures like legal bills, notices to impacted parties, and regulatory fines.
Being able to prevent or mitigate the effects of a data breach allows businesses to save a significant amount of money over time. Companies that implement ISO 27001 reduce the likelihood and effects of these types of incidents.
The total return on investment (ROI) of earning ISO 27001 certification is influenced by the cost savings from averting information security occurrences. This will increase return on investment because they can then allocate funds and resources to other business units.
Data Protection and Client Trust
Customers are becoming more concerned about the security of their personal information. They expect businesses to manage their data with diligence and responsibility.
Companies that demonstrate their commitment to their customers accredit themselves with ISO 27001 certification. This internationally recognized accreditation tells customers that the company has strong data security measures in place. Customers are more likely to continue with and have faith in these organizations that increases client retention and loyalty.
The overall return on investment (ROI) of acquiring ISO 27001 systems may therefore be improved by this.
User Adoption and Efficiency Improvement
ISO 27001 states that businesses must have clear policies and procedures in place for managing information security. Policies including password protocols, access controls, and data handling procedures are necessary to preserve data security.
Employees knowledge and prudence about information security increases if they are trained on these policies and processes. This reduces the likelihood that human error will cause information security problems. The company may experience an increase in total output and efficiency as a result.
Once users understand the value of information security, they are more inclined to embrace secure practices. Through education and training, businesses can encourage users to adopt safe habits, creating a more secure workplace.
Employee Morale and Retention
Every business’s most valuable resource is its workforce, whose happiness and morale have an impact on how the company runs. Employees want to work for organizations that prioritize their job security and well-being more than ever.
Because the organization is accredited under ISO 27001, employees can feel safe in the knowledge that confidential information, including that of their coworkers, is protected. Establishing security protocols and guidelines lends credibility and assurance to the organization.
When workers feel their company is protecting their data, they may be more satisfied with their jobs and have higher overall morale.
The cost of employee turnover can be high, thus investing in ISO 27001 can reduce the likelihood of losing critical employees. A motivated and contented workforce can increase productivity and efficiency, which will ultimately lead to a higher return on investment.
Reduced Insurance Premium Costs
Companies pay insurance premiums to lower risks and protect their investments. The average monthly premium for business owner’s insurance is $57, but it can go much higher for companies in high-risk industries like healthcare or finance.
Insurance firms take company’s security measures into account when setting premiums. The ISO 27001 accreditation shows insurance companies that the business has lowered its potential risks.
The certification may result in reduced insurance costs, which would save money and improve return on investment for the business. Furthermore, organizations may find it simpler to first secure insurance coverage if they are certified to ISO 27001.
Respect for Rules and Law Requirements
Sensitive information must be protected by laws and regulations in many sectors. For instance, GLBA is used in the banking sector while HIPAA is used in the healthcare sector. Serious fines and penalties may be incurred for breaking these regulations.
Companies can prove they are in compliance with these standards by obtaining ISO 27001 certification. By putting in place the security procedures required for certification, businesses can avoid fines and legal expenditures. The overall return on investment (ROI) of purchasing ISO 27001 may be boosted by the cost savings from avoiding non-compliance.
Vendor and Supply Chain Management
Today’s businesses usually share sensitive information with several suppliers and partners in order to conduct business. These third-party links could put businesses at danger if the vendors don’t prioritize information security.
Companies applying for ISO 27001 certification need to evaluate and manage supply chain and vendor risks. As such, businesses may lessen possible risks and have faith in the security procedures of their associates. The cost savings from reducing security risks affect the overall return on investment (ROI) of obtaining ISO 27001 certification.
Possibility of Partnerships and Business Growth
Because ISO 27001 accreditation is widely accepted, it is simpler for businesses to establish alliances and grow globally. To conduct business with them, many firms demand that their partners hold an ISO 27001 accreditation. Companies can create new avenues for growth and expansion by receiving the certification.
The total return on investment (ROI) of purchasing ISO 27001 might be greatly increased by the possibility of collaborations and business expansion. A company with this certification can expand into new areas and boost sales.
Partnerships with other accredited businesses can also result in cost reductions and increased productivity.
In summary
There are benefits to ISO 27001 certification beyond enhanced data security. It can also increase user adoption, decrease insurance rates, enhance regulatory compliance, and provide new business opportunities. These benefits of implementing ISO 27001 add up to a higher return on investment for enterprises. A globally recognized accreditation also gives companies a competitive edge and boosts client confidence.
Syncuppro provides a top platform for compliance and certification specialists. Our team of expert consultants can help your business become certified to ISO 27001 standards. To learn more about how we may assist you with improving the security of your data, get in contact with us.