ISO 27701 Explained: How to Extend ISO 27001 into a Full Privacy Management System

Organizations face increased scrutiny as global privacy laws evolve, and now, they’ve got to demonstrate both good security of information as well as responsible management of personal information. This is where ISO 27701 will play a major role. A privacy focused addition to ISO 27001, it allows organizations to put in place a structured PIMS (Privacy Information Management System), aligning their security practices with evolving privacy standards.

This blog will define what ISO 27701 is, how it works (as an extension of ISO 27001) and detail the steps an organization can take to implement ISO 27701. We’ll also provide examples of how ISO 27701 helps build a scalable ISO compliant PIMS that meets regulatory compliance, customer confidence and provides a long-term framework for data governance.

What is ISO 27701?

ISO/IEC 27701 has established itself as a global standard that outlines how to create, operate, manage and improve a privacy information management system. Its aim is to assist organizations in their management of personal information in an organized, auditable and compliant way.

What is unique about ISO 27701 is that it is an expansion of ISO 27001; therefore, organizations must have or implement – both ISO 27001 and ISO 27002 before they can implement ISO 27701. This helps to provide an appropriate framework for privacy controls made on the basis of strong information security controls and enhances both governance efficiency and reduces duplication of effort. ISO 27701 can be utilized by all types and sizes of organizations; however, ISO 27701 applies specifically to any organization that is a PII controller and/or PII processor.

Why ISO 27701 Is More Than Just a Privacy Standard?

While some organizations believe that complying with privacy regulations simply involves either having legal documentation or obtaining consent to use the information of users, ISO 27701 has a much broader definition than solely these two areas. ISO 27701 defines the entire scope of Privacy Governance, Accountability and Operational Control for all processes associated with the collection and use of personal data throughout the entire lifecycle of personal data. By implementing ISO 27701, organizations will establish a systematic approach for identifying the existence of privacy risks; identifying responsible parties for mitigating those risks; monitoring compliance with their privacy obligations; and handling requests from the data subject. Therefore, ISO 27701 is highly applicable to any industry that requires a high level of trust, transparency, and a large amount of regulatory oversight.

ISO 27701 as an ISO 27001 Extension

The ISO 27701 standard is an extension of the existing ISO 27001 standard, and therefore an organization must first implement an ISMS (ISO 27001) before proceeding with the implementation of the ISO 27701 standards. These two standards provide the basis for an organization to develop a unified framework where security and privacy mutually support each other; each standard supports the other through consistency in definitions, policies, and procedures related to the processing of an individual’s personal data in accordance with applicable legal requirements for the protection of personal data.

ISO 27701 vs ISO 27001: Understanding the Difference

ISO 27001 and ISO 27701 are internationally accepted standards created for organizations to handle sensitive data properly and manage their information security strategy in an efficient manner. The two ISO standards are not interchangeable; they have different purposes. ISO 27001 addresses the management of all types of information security, while ISO 27701 builds upon the ISO 27001 framework by establishing controls regarding how to manage privacy and personal data. The chart below lists the fundamental differences that exist between the two ISO standards.

What Is a Privacy Information Management System (PIMS)?

A Privacy Information Management System (PIMS) is the standardized result produced from the implementation of ISO 27701 in concert with ISO 27001. A PIMS provides for the integration of privacy principles into an organization’s culture, decision making and risk management processes. A PIMS will include, among other things, documented policies, defined roles (such as privacy owners), data classification methods, and processes for obtaining consent, responding to data access requests and deleting data; it will also provide for ongoing monitoring and improvement of privacy management to enable the organization to manage privacy proactively rather than reactively.

Key ISO 27701 controls explained include:

• PII identification and data mapping to understand data flows and processing purposes
• Privacy risk assessments aligned with the organization’s risk management framework
• Lawful basis and consent management for PII processing activities
• Data subject rights management, including access, rectification, erasure, and portability
• Third-party and supplier privacy controls to ensure privacy across the supply chain
• Privacy incident management and breach notification procedures

These controls ensure privacy requirements are embedded into operational processes, rather than being handled reactively after an issue arises.

How to Implement ISO 27701 Effectively?

Organizations frequently ask how to implement ISO 27701 without creating unnecessary complexity. The standard is intentionally designed to integrate smoothly with existing ISMS processes. A practical implementation approach includes:

1. Confirm ISO 27001 readiness – ISO 27701 relies on a mature ISMS as its foundation.
2. Define scope and PII roles – Clearly identify whether the organization acts as a controller, processor, or both.
3. Perform a privacy gap analysis – Identify missing controls and documentation.
4. Update policies and procedures – Incorporate privacy principles into HR, IT, procurement, and vendor management.
5. Deliver training and awareness programs – Ensure employees understand their privacy responsibilities.

This step-by-step approach minimizes disruption while ensuring effective adoption of privacy controls.

Building an ISO 27701 Compliance Roadmap

Organizations can effectively manage their timelines and responsibilities when implementing ISO 27701 by using a clearly written compliance Roadmap. This roadmap includes the following main components: privacy readiness assessments, defined scope of the reported implementation, control implementation, completed internal audits, and completed certification audits. In addition to obtaining certification, the roadmap also emphasizes the need for organizations to undergo regular management reviews and ongoing monitoring in order to demonstrate that their privacy management system continues to function as laws, technologies, and business models change.

Business Benefits of ISO Privacy Certification

The achievement of ISO privacy certification is an indication of a company’s devotion to internationally accepted best practices for privacy and will signify confidence in regulators, customers, and business partners. The benefits include:

• Increased confidence from regulatory inspectors
• Stronger presence within privacy-minded markets
• Reduced duplication within global privacy laws
• Improved management over and accountability to PII

Additionally, the ISO 27701 certification may give global businesses and those handling sensitive information a significant competitive advantage.

Who Should Consider ISO 27701?

ISO 27701 is recommended for any organization working with a large volume of personal data, including those that provide IT Services, SaaS Products, Financial Services, Healthcare Services, and Digital Platforms. All organizations wishing to enhance their existing ISO Privacy Management Systems can benefit from ISO 27701.

ISO 27701 is especially useful for businesses that operate in multiple jurisdictions where there are differences in privacy requirements but there are still high expectations for accountability.

Conclusion

ISO 27701 changes the ISO 27001 from being only about security into an all-encompassing Privacy Information Management System by adding privacy governance and information security together into one unified method for protecting how you handle personal data. This is also in the context of having an ongoing maintenance program where you can demonstrate compliance with a continual improvement process and ensure that you’ve established sufficient controls to meet the current and future obligations around privacy laws. Ready to extend your ISO 27001 framework into a complete privacy management system? Partner with ValueMentor to begin your ISO 27701 journey and build a compliant, scalable PIMS that strengthens trust, meets global privacy requirements, and protects personal data across your organization.

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