- ISO 27701 extends ISO 27001 with a privacy management system, providing an internationally recognized framework for the protection of personal data
- Companies with ISO 27701 certification strengthen trust and credibility with customers, partners, and regulators through transparent privacy practices
- The certification facilitates compliance with international data protection regulations, including the GDPR, and supports global data transfers
- ISO 27701 helps organizations effectively manage privacy risks and better prepare for legal requirements and privacy threats
- An ISO 27701 certification not only improves data security but also opens up new business opportunities in international markets
Personal data is a critical asset for both organisations and consumers. While businesses use personal data to run targeted advertisements, consumers use the same data to access free internet. This trade-off has run its course where consumers have become increasingly wary of the ways their personal data are abused.
Amid rising concerns, people expect businesses to respect their data privacy and protect their data with the utmost care. From a business point of view, protecting data plays a pivotal role in building trust with customers. According to a survey by Termly, 91.1% of businesses are willing to prioritise data privacy if they knew it would increase customer trust and loyalty.
To strike this delicate balance, while there are region-specific regulations in place, they're bound to their scope and enforcement. Comparatively, ISO 27701 provides an internationally recognised framework for data privacy. It plays a crucial role in managing personally identifiable information (PII), which both data controllers and data processors leverage for a host of benefits.
Relationship between ISO 27001 and ISO 27701
Certification for ISO 27701 is built upon certification first achieved for ISO 27001. Simply put, ISO 27701 is an extension to ISO 27001, the most recognised standard of the ISO (International Organisation for Standardisation) family.
The main difference between two frameworks lies in their areas of applicability
- While ISO 27001 is about information security management, ISO 27701 focuses on managing data privacy.
- ISO 27001 provides a framework for establishing, implementing, maintaining, and continually improving an information security management system (ISMS). Comparatively, ISO 27701 extends this approach to manage data privacy through a privacy information management system (PIMS).
How ISO 27701 certification benefits businesses?
To leverage global data transfers
Nearly 137 out of 195 countries worldwide have data protection regulations. But problems with cross-border data transfer arise with the requirement of “essential equivalence” by the Court of Justice of the European Union (CJEU). This measure ensures that data protection offered by non-EU nations is comparable to that of the EU’s GDPR.
Previously, the Safe Harbour framework assisted with data transfer between the EU and the US. However, following the Schrems I decision in 2015, the EU-US Privacy Shield replaced the former. This framework as well was ruled invalid, citing similar concerns regarding data privacy and surveillance in the Schrems II case in 2020.
While the EU-US Data Privacy Framework (DPF), adopted in 2023, for now aims to solve the matter, it too faces criticisms similar to its predecessors. Another legal challenge (like Schrems III) may potentially invalidate this framework once more.
To aid with cross-border data transfers, companies can also rely on standard contractual clauses (SCCs) and binding corporate rules (BCRs). However, additional due diligence requirements for the data exporter’s organisation to determine the “adequate level” of protection for personal data offered by the data importer’s organisation make the task burdensome for both parties.
Such inconsistencies with stability and cross-jurisdictional compatibility are solved by ISO 27701 to a great extent. It offers long-lasting stability and robust, enforceable mechanisms, ensuring data privacy and protection regardless of the jurisdiction. The challenge with neutralisation of local surveillance can be sufficiently addressed by leveraging a mix of risk management, data transfer assessments (Clauses 7.5 and 8.5), and supplementary measures (e.g., encryption and anonymisation) as outlined in the standard.
Additionally, ISO 27701 certification also bestows an efficient and comprehensive tool for organisations to assess, inform, and determine the “essential equivalence” requirement under the GDPR. Certification with ISO 27701 helps organisations bridge the gap between various regional data protection regulations, empowering them to operate on an international scale.
To improve trust and credibility
ISO 27701 provides the standard necessary to build trust when managing data. Certification demonstrates compliance with policies, procedures, and protocols devised as per an international standard like ISO 27701, instilling confidence in stakeholders. The standard empowers organisations to strengthen their ability to mitigate risk at every stage of its processing.
ISO 27701 offers enhanced transparency into existing privacy management controls, providing stakeholders with a clear understanding of the controls taken to protect personal data. This transparent data governance practise assures external stakeholders of unwavering commitment to data protection. It triggers informed decision-making, along with a tendency for the emergence of trust.
ISO 27701 certification fosters a natural affinity among customers, regulators, investors, suppliers, vendors, and partners. Certification status highlighted in advertisements, marketing materials, online portals, and client communications reinforces the organisation's credibility and increases the odds of securing new business opportunities.
Improved data protection compliance
An ISO 27001-compliant ISMS acts as a foundation on which compliance with most international data privacy regulations can be easily achieved. However, meeting compliance with specific regulations, for example, California’s CCPA and EU’s GDPR, requires incremental work to comply with jurisdiction-specific caveats and nuances.
There are many key areas of overlap between ISO 27701 and GDPR that solve compliance with the latter once the former is achieved. Also, because GDPR set the blueprint as a comprehensive, omnibus data protection law worldwide—called Brussels effect—it’s safe to say that ISO 27701 is a silver bullet for data protection compliance.
What is the process for ISMS certification?
Before you dive into the reading, we’d like to point out that this article is not a step-by-step guide to ISMS certification. The lifecycle of ISMS certification consists of two phases: the pre-audit phase and the audit phase. Here, we summarize the processes that take place from the moment an external auditor arrives on-site for the review. This phase is more cyclical and consists of four parts.
We have covered the pre-audit phase in detail in a separate article, which you can find [here].
Key requirements encompassed under the standard that overlap with GDPR:
- Conducting privacy risk assessments (Clauses 5.4 & 5.6) meets GDPR’s Article 35 requirements of identifying and assessing privacy risks.
- Maintaining inventory of personal data and classifying data based on sensitivity and risk helps with data subject access requests (DSAR).
- Having clear data retention policies helps with GDPR right to erasure (Article 17) and data minimisation (Article 5(1)(c)).
- Defining roles and responsibilities (Clause 6.3.1.1) meets GDPR requirements of establishing who is responsible for data ownership, data stewardship, privacy impact assessments, breach management, etc. It’s extent can also be observed in designation of a DPO as required under Article 37 of GDPR.
Conclusion: Our Key Insights on ISO 27701
Compliance with region-specific data protection laws and regulations is a must. However, they're limited to the scope of the regulation to which jurisdiction it applies. ISO 27701 solves such an issue with its international acceptance, without any mandatory compliance required.
As an organisation, you can choose to implement the standard for development, maintenance, and continual improvement of your PIMS. ISO 27701 not only eases compliance with jurisdiction-specific data protection regulations, but it also amplifies your trust and credibility in the international market.
If you're ISO 27001-compliant and exploring the market for aid with ISO 27701 compliance, Kertos offers support over ISO standards and frameworks, all in one easy-to-use platform. Book a demo today to check our expertise.
