Data security is a major issue for any business with valuable information that must be secured. This is why one of the most important challenges that Australian businesses face today is ensuring that their core IT infrastructures are safe from targeted and costly attacks. While the news may only report on large companies experiencing data breaches, the fact is that all companies are at risk, regardless of their size.

Why is Information Security Important?

The information systems used day-to-day in businesses operate with large amounts of confidential data. The kinds of information stored in these systems, like client information, health data, payment details, personal files and banking details, can be hard to replace and potentially dangerous if they fall into the wrong hands. Data lost by accident can be crippling, but data lost to hackers can have extreme and costly consequences.

Do I Need to Protect My Data?

One of the most important reasons that companies choose to implement data protection strategies is to avoid financial loss. For businesses, data is an incredibly important asset that needs to be protected. Loss of information can lead to direct monetary losses, due to loss of sales, regulatory fines as well as civil lawsuits. Data breaches can also affect a company’s bottom line indirectly from the effects of a drop in investor confidence or customers switching to competitors. Additionally, the fact that data has been stolen or tampered with may not come to the attention of the company until much later, at which point the effects may be magnified. 

Another factor that may not receive as much attention, but is nonetheless critical to an organisation, is productivity. The loss of important data has a huge impact on the overall productivity of a company. After an information security breach, employee time will be spent on customer issues relating to the breach. Additionally, the productivity of employees will be affected if they are forced to do their job without their usual computer systems. An insufficient data protection strategy may leave workers idle or at reduced capacity while they wait for systems to be restored. 

The multitude of losses incurred due to a loss of data is driving many businesses to adopt information security management systems that comply with the international standard for information security management systems, ISO 27001.

What are Information Security Management Systems?

An information security management system (ISMS) is a systematic and structured approach to managing and protecting an organisation’s sensitive data. The implementation of ISMS includes policies, processes, organisational structures and software and hardware functions. An organisation’s ISMS should be directly influenced by their objectives, structure, security requirements and current processes. Effectively implemented ISMS can help businesses of all sizes and in any sector keep information assets secure. 

What is ISO 27001 and Why Do I Need It?

ISO 27001 is the international standard for information security management systems. It is a formal specification that is intended to bring information under the explicit control of management. Organisations that claim to have adopted ISO 27001 can be formally audited by a certification body and certified as compliant with the standard.

The ISO 27001 requires that management do the following:

• Systematically examine the organisation’s information security risks by investigating threats, vulnerabilities and impacts.
• Design and implement a thorough and consistent set of information security controls
• Adopt overarching management procedures to ensure that the organisation’s information security controls continue to meet the changing demands of the organisation. 

The benefits of ISO 27001 certification to a business are significant. Not only do these standards ensure a business’s security risks are managed effectively, but compliance with internationally recognised standards instils confidence in existing and prospective clients. ISO 27001 certification signifies a clear commitment to information security management.

If you’d like to chat to a Compliance Council compliance consultant about becoming certified to ISO 27001, get in touch with us today.

For more information on the current data threats facing all Australian businesses, get your free copy of our 'Information Security and Australian Businesses' Whitepaper below: