In 2023 alone, cybercrime was estimated to cost businesses around $8 trillion globally, and by 2025, that figure could climb to a staggering $10.5 trillion annually. The average data breach.) in 2023 cost companies about $4.45 million. Going by the projections we see that threats are escalating, as such the importance of a reliable, compliant information security framework can’t be overstated. Especially for businesses handling large volumes of sensitive data in regulated sectors like finance, healthcare, and legal, the ISO 27001 standard is the benchmark for information security management.
This is where a Document Management System like Folderit comes in with its ISO 27001 certification. Folderit makes sure that companies remain organized and secure and that documents adhere to the strict requirements of ISO 27001, making certain that your organization meets the highest levels of data protection.
What is ISO 27001 and Why It Matters for Your Business
ISO 27001 is an internationally recognized standard for Information Security Management Systems (ISMS). The standard focuses on ensuring the confidentiality, integrity, and availability of information—critical aspects for any business dealing with sensitive data. It provides a systematic approach to managing sensitive company information, helping organizations address risks, implement security measures, and protect themselves from evolving cyber threats.
Unlike many other frameworks, ISO 27001 doesn’t just apply to large corporations; it’s scalable for small to medium businesses as well. Achieving ISO 27001 certification involves undergoing a rigorous audit process, proving that a company has implemented the necessary security controls to manage and protect its information. For sectors where privacy and data security are crucial for compliance, such as healthcare (HIPAA), finance, and legal services (SOX), an ISO 27001 certification can be an important differentiator.
Key Benefits of ISO 27001 Certification for Document Management
The ISO 27001 certification ensures a wide range of compliance benefits beyond just security, which make it something that companies and organizations should actively seek out. Some include:
Enhanced Data Security
ISO 27001 forces companies to take a proactive approach to security by conducting risk assessments and implementing controls that mitigate the risk of data breaches. By following this approach, businesses reduce their exposure to internal and external threats.Regulatory Compliance
Many global regulations, such as GDPR (General Data Protection Regulation) and HIPAA (Health Insurance Portability and Accountability Act), require companies to secure sensitive information. ISO 27001 ensures that businesses have all necessary processes in place to comply with all relevant regulatory requirements. This is all the more important because businesses may face severe penalties for non-compliance of these regulations.Increased Trust and Credibility
ISO 27001 certification is nothing short of a seal of trust for clients and partners. The certification proves that a company is taking the necessary steps to protect customer data, which is always a competitive advantage.Cost Savings Through Risk Mitigation
By identifying risks early and implementing controls to mitigate them, ISO 27001 helps businesses prevent costly data breaches. The cost to benefit is significantly skewed in favor of utilizing ISO 27001 complaint EDMSs, the investment is far smaller than the potential financial loss from a security incident.
Why Your Business Needs an ISO 27001-Compliant DMS
A Document Management System (DMS) is the backbone of the lifecycle management of sensitive documents, from creation and storage to archiving and eventual destruction. When combined with ISO 27001 compliance, a DMS becomes an indispensable tool for modern businesses.
Here’s why:
Access Control: A compliant DMS allows for precise control over who can access, edit, or share sensitive documents. With ISO 27001, it’s mandatory that businesses only allow access to authorized personnel, and a DMS makes this process automated and secure.
Audit Trails: ISO 27001 requires detailed logs of all actions taken on sensitive documents—whether they’ve been viewed, edited, or shared. A DMS like Folderit automatically maintains these audit trails, making it easier to track compliance.
Data Encryption: A DMS should secure documents both at rest and in transit. Folderit employs 256-bit encryption, ensuring that your documents remain secure from the moment they are uploaded to when they’re accessed by authorized users. This level of security is critical to meeting ISO 27001 requirements.
Version Control: Businesses need to maintain document integrity, and version control is a key part of this. A compliant DMS tracks document changes and ensures that only the most up-to-date versions are used, helping prevent errors and ensuring compliance.
How Folderit DMS Helps You Achieve and Maintain ISO 27001 Compliance
When it comes to securing sensitive information, Folderit goes beyond traditional document management. As an ISO 27001-certified DMS, Folderit provides the essential tools your business needs to stay compliant, protect sensitive data, and simplify security processes. Let’s explore how Folderit’s features align directly with the core principles of ISO 27001 and help you stay compliant.
Role-Based Access Control
Folderit offers granular, role-based access control, allowing administrators to define who has permission to view, edit, or share specific documents. This aligns with ISO 27001’s requirement for restricting access to sensitive data, ensuring that only authorized personnel can handle high-risk documents. For example, financial records can be restricted to accounting teams, while legal documents can be locked to only the legal department.Automated Audit Trails
Keeping a record of document access and changes is crucial for ISO 27001 compliance, and Folderit automates this process with audit trails. Every interaction with a document is logged, detailing who accessed it, when, and what changes were made. This not only helps during external audits but also enables businesses to monitor document activity and identify any suspicious behavior in real time.256-bit Data Encryption
Encryption is a critical requirement under ISO 27001, and Folderit employs 256-bit encryption, the same level used by banks, to protect documents both at rest and in transit. This ensures that your sensitive documents are protected from unauthorized access, even in the event of a breach or interception during file transfer.Disaster Recovery and Data Availability
ISO 27001 emphasizes the importance of ensuring data availability and resilience in the face of disasters. Folderit ensures compliance by providing automated backups stored in geographically separate data centers. This guarantees that your documents remain accessible even in the event of system failures, cyberattacks, or physical damage to a data center.Retention Policies
Folderit enables businesses to set custom retention policies, which ensures that documents are stored for the legally required period and securely deleted when no longer needed. This feature helps businesses comply with industry-specific data retention laws while staying aligned with ISO 27001’s document lifecycle management requirements.
Penalties for Non-Compliance and Real-World Consequences
The risks of failing to comply with ISO 27001 standards extend far beyond operational inefficiencies. Non-compliance can lead to hefty penalties, loss of client trust, and reputational damage. In regions governed by GDPR, for example, fines for failing to protect personal data can reach €20 million or 4% of global turnover, whichever is higher. Additionally, data breaches can result in massive financial losses due to legal fees, compensation payouts, and loss of business.
High-profile cases like the 2020 British Airways data breach, where the airline was fined £20 million for failing to protect customer data, serve as stark reminders of the consequences of not having a robust data security framework in place. By using an ISO 27001-certified DMS like Folderit, businesses can avoid these costly consequences, while also enhancing their overall operational security.
Secure Your Business with Folderit’s ISO 27001-Compliant DMS
With increasing cyber threats and evolving regulations adopting an ISO 27001-certified DMS is is the way to go. Folderit’s comprehensive approach to document management offers organizations a secure, compliant solution that safeguards sensitive information, simplifies regulatory compliance, and enhances operational efficiency. From role-based access control to audit trails and encryption, Folderit provides the tools you need to keep your data secure and your business compliant.
