Compliance glossary
Definition

ISO 27001 vs WISP

ISO 27001 is an international, certifiable security management standard; a WISP is the US-required information security program for financial institutions.

What it means.

ISO 27001 is an international standard for Information Security Management Systems (ISMS), with formal certification awarded by accredited registrars. It requires a comprehensive ISMS covering risk management, control implementation, internal audits, and continual improvement. A WISP is the document required by the FTC Safeguards Rule and IRS Publication 4557 for financial institutions in the US. A WISP can be aligned with ISO 27001 controls but does not need to be.

Why it matters for CPA firms.

Most US CPA firms do not need ISO 27001 certification. They need a WISP. ISO 27001 becomes relevant when a firm serves international clients, particularly in the EU or UK, where enterprise procurement teams expect it. Pursuing ISO 27001 unnecessarily costs $50,000 to $150,000 over the first cycle and adds ongoing audit costs. A well-built WISP satisfies regulators and most US insurance carriers without it.

Relevant regulations.

  • ISO/IEC 27001:2022
  • 16 CFR Part 314

Related terms.

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