ISO 27001 Clause 4.1 Understanding The Organisation and Its Context is the requirement to identify and manage the internal and external issues that can affect the information security management system (ISMS) and prevent it from achieving its intended outcomes.
In ISO 27001 this is known as ISO27001:2022 Clause 4.1 Understanding The Organisation And Its Context. It is one of the mandatory ISO 27001 clauses.
Internal issues and external issues are just another way of saying risks.
Internal and external issues are risks to the information security management system and they should be identified and managed.
So the clause is asking you to consider and record what internal and external risks there are to your information security management system (ISMS). What could stop your information security management system from being able to achieve its outcomes?
Key Takeaways
- Internal and external issues are risks to the information security management system.
- You identify them by doing a brainstorming session
- You manage them via risk management
Table of contents
- Key Takeaways
- What is ISO 27001 Clause 4.1?
- What is ISO 27001 Amendment 1: Climate action changes?
- What are ISO 27001 internal issues?
- ISO 27001 Internal Issues examples
- What are ISO 27001 external issues?
- ISO 27001 External Issues examples
- ISO 27001 Clause 4.1 Explained: Video Tutorial
- How to implement ISO 27001 Clause 4.1
- ISO 27001 Clause 4.1 Implementation Checklist
- How to audit ISO 27001 Clause 4.1
- ISO 27001 Clause 4.1 Audit Checklist
- How to pass the ISO 27001 Clause 4.1 audit
- What an auditor looks for
- Top 3 ISO 27001 Clause 4.1 Mistakes and How to Fix Them
- How can the ISO 27001 Toolkit help with ISO 27001 Clause 4.1?
- ISO 27001 Clause 4.1 FAQ
- Further Reading
What is ISO 27001 Clause 4.1?
ISO 27001 Clause 4.1 Understanding The Organisation And Its Context is an ISO 27001 clause that requires us to understand the internal and external issues that could impact your information security management system (ISMS).
Reference: What is ISO 27001 Clause 4.1?
ISO 27001 Clause 4.1 Purpose
ISO 27001 Clause 4.1 is an Information Security Management System (ISMS) control to ensure you identify, manage and mitigate risks to the management system achieving its intended outcomes.
ISO 27001 Clause 4.1 Definition
The ISO 27001 standard defines ISO 27001 Clause 4.1 as:
The organisation shall determine external issues and internal issues that are relevant to its purpose and that affect its ability to achieve the intended outcome(s) of its information security management system.
ISO27001:2022 Clause 4.1 Understanding The Organisation And Its Context
The organisation shall determine whether climate change is a relevant issue.
What is ISO 27001 Amendment 1: Climate action changes?
The standard amended the definition in February 2024. This amendment, referred to as Amendment 1: Climate action changes added climate change to ISO 27001 Clause 4.1. The standard also added the following sentence:
‘ The organisation shall determine whether climate change is a relevant issue.’
ISO27001:2022 Amendment 1
What are ISO 27001 internal issues?
ISO 27001 Internal Issues are threats that could hinder the effective functioning of your information security management system (ISMS). In other words, consider them as risks that could prevent the ISMS from achieving its desired outcomes.
ISO 27001 Internal Issues are inherent risks originating within an organisation that can hinder the effective functioning of its Information Security Management System (ISMS). These issues originate within your organisation and, to a large extent, are within your control. These internal risks can impede the ISMS from achieving its objectives, particularly in safeguarding the confidentiality, integrity, and availability of information assets.
Internal issues is defined as – organisational risks to the Information Security Management System (ISMS) achieving its interned outcomes.
ISO 27001 Internal Issues examples
The following are 10 real world examples of ISO 27001 Internal Issues:
- Lack of management commitment: This can hinder the successful implementation and maintenance of the ISMS, as employees may not perceive information security as a critical organisational objective.
- Inadequate resource allocation: This can lead to gaps in security coverage, delayed responses to incidents, and an inability to implement necessary security measures.
- Lack of employee awareness and training: This can increase the risk of data breaches, system disruptions, and reputational damage.
- Poor communication and coordination: This can create silos within the organisation, hindering the collective effort to maintain information security.
- Resistance to change: This can lead to non-compliance with security measures, hindering the effectiveness of the ISMS6.
- Lack of Regular Reviews and Updates: This can lead to outdated security controls, increased vulnerability to new threats, and non-compliance with evolving standards and regulations.
- Inadequate access control management: This can lead to data breaches, system disruptions, and loss of confidentiality, integrity, and availability of information assets.
- Insufficient incident response planning: This can exacerbate the impact of security incidents, increasing the risk of data loss, system downtime, and reputational damage.
- Inadequate physical and environmental security: This can lead to data breaches, system disruptions, and loss of critical infrastructure.
- Lack of Business Continuity and Disaster Recovery Planning: This can lead to significant financial losses, reputational damage, and disruption to business operations.
By identifying and addressing these internal issues, organisations can significantly improve the effectiveness of their ISMS and enhance their overall information security posture.
What are ISO 27001 external issues?
External Issues are inherent risks originating outside an organisation that can hinder the effective functioning of its Information Security Management System (ISMS). These external risks, primarily outside the organisation’s control, can impede the ISMS from achieving its objectives, particularly in safeguarding the confidentiality, integrity, and availability of information assets.
External issues is defined as – external risks to the Information Security Management System (ISMS) achieving its interned outcomes.
ISO 27001 External Issues examples
The following are 10 real world examples of ISO 27001 External Issues:
- Legal and Regulatory Requirements: Changes in data privacy laws (e.g., GDPR, CCPA), industry-specific regulations (e.g., HIPAA, PCI DSS), and cybersecurity frameworks (e.g., NIST Cybersecurity Framework). Non-compliance can lead to severe financial penalties, reputational damage, and loss of customer trust.
- Competitive Landscape: Actions of competitors, such as new product offerings, market share shifts, and cyberattacks targeting rivals. This can indirectly affect an organisation’s information security posture by increasing pressure to innovate and adapt, potentially leading to security vulnerabilities.
- Technological Advancements: Rapid changes in technology, such as the rise of cloud computing, artificial intelligence, and the Internet of Things. This creates new security challenges and opportunities, requiring organisations to constantly update their security controls and adapt to evolving threats.
- Economic Conditions: Economic downturns or recessions can impact an organisation’s budget, potentially leading to reduced spending on information security measures. This can weaken the organisation’s security posture, making it more vulnerable to cyberattacks.
- Social and Cultural Factors: Changing societal norms and expectations regarding data privacy and security, as well as cultural differences between countries. This can influence an organisation’s approach to information security and its reputation among stakeholders.
- Political Stability: Political instability, such as wars, conflicts, or changes in government. This can disrupt business operations and increase the risk of cyberattacks, particularly those targeting critical infrastructure.
- Natural Disasters: Natural disasters, such as earthquakes, floods, and hurricanes can damage physical infrastructure and disrupt business operations, potentially impacting the availability and integrity of information assets.
- Geopolitical Events: Global events, such as pandemics, trade wars, and geopolitical tensions can create uncertainty and disrupt supply chains, potentially affecting an organisation’s ability to maintain its information security controls.
- Cybersecurity Threats: The evolving threat landscape, including new malware, ransomware attacks, and social engineering techniques. This requires organisations to constantly adapt their security measures to stay ahead of cybercriminals.
- Stakeholder Expectations: The expectations of customers, suppliers, and other stakeholders regarding data privacy and security can influence an organisation’s information security policies and practices, as well as its reputation and brand image.
ISO 27001 Clause 4.1 Explained: Video Tutorial
In the video ISO 27001 Clause 4.1 Understanding The Organisation And Its Context Explained I show you how to implement it and how to pass the audit.
How to implement ISO 27001 Clause 4.1
To implement ISO 27001 Clause 4.1, follow the ISO 27001 Lead Auditor guide How to implement ISO 27001 Clause 4.1
ISO 27001 Clause 4.1 Implementation Checklist
The ISO 27001 Clause 4.1 Implementation Checklist supports the guide on how to implement ISO 27001 Clause 4.1
How to audit ISO 27001 Clause 4.1
To audit ISO 27001 Clause 4.1, follow the ISO 27001 Lead Auditor guide How to audit ISO 27001 Clause 4.1
ISO 27001 Clause 4.1 Audit Checklist
The ISO 27001 Clause 4.1 Audit Checklist supports the guide on how to audit ISO 27001 Clause 4.1
How to pass the ISO 27001 Clause 4.1 audit
To successfully pass an audit of ISO 27001 Clause 4.1 Understanding The Organisation And Its Context you must
- Identify ISO 27001 internal Issues
- Identify ISO 27001 external issues
- Document internal and external issues in a Context of Organisation Document
Watch this short video on what you need to implement and what will be audited for Clause 4.1.
What an auditor looks for
The auditor is going to check a number of areas for compliance with ISO 2001 Clause 4.1 Understanding The Organisation And Its Context.
Let’s take a look at the top 4 in more details.
1. That you have documented your internal and external issues
The simplest way to do this is with the fully populated ISO 27001 Context of Organisation Template. In this short vide I explain why you document your internal and external issues when implementing ISO 27001 clause 4.1.
2. That you are risk managing internal and external issues
If you identify internal issues or external issues that can impact the information security management system and you are not addressing them directly then you need to manage it via risk management.
This means as a minimum putting it on the ISO 27001 risk register and following your ISO 27001 risk management process.
Be sure to link the issue to the risk by cross referencing.
3. That you have approved the included common issues
Auditors often raise common internal issues and external issues that they have seen elsewhere. Therefore, it is good practice to list out all potential internal issues and external issues that could impact your information security management system, regardless of whether they apply to you or not.
If they do not apply to you, record them and explain why. By doing this, you can demonstrate that you have conducted a thorough review and avoid awkward questions or the auditor raising points that you have considered but placed out of scope.
Since you have recorded these issues and determined that they do not apply, you can provide evidence to support your conclusion.
4. Assess if legal and regulatory compliance was considered
Legal and regulatory compliance is the biggest driver of internal and external issues and as such assess if has been considered.
- Review the legal register
- Examine meeting minutes
Top 3 ISO 27001 Clause 4.1 Mistakes and How to Fix Them
Based on experience, the top 3 mistakes people make for ISO 27001 clause 4.1 are
1. You have no evidence that anything actually happened
You need to keep records and minutes and documented evidence.
As a result, recording internal issues and external issues that apply and those that do not shows a thorough understand of the requirement and will avoid awkward questions.
2. You did not link to risk management
Where internal issues or external issues are identified but you cannot satisfy it you should have this on the risk register and managed via risk management.
This is a point often overlooked.
It must be remember that if you identify an issue and do nothing about, or cannot evidence that you have done something about it, it will be raised as a non conformity.
3. Your document and version control is wrong
Best practice for documentation includes:
- Keeping your document version control up to date
- Making sure that version numbers match where used
- Having a review evidenced in the last 12 months
- Having documents that have no comments
How can the ISO 27001 Toolkit help with ISO 27001 Clause 4.1?
The ISO 27001 toolkit can significantly assist with ISO 27001 Clause 4.1 by providing pre-written templates and structured guidance.
The toolkit provides pre written templates for context of the organisation that includes internal issues and external issues as well as a structured methodology on how to identify them and meet their needs.
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ISO 27001 Context of Organisation Template
The ISO 27001 Context Of Organisation template fully meets the requirements of ISO 27001 Clause 4.1 and includes pre-written examples of common internal issues and external issues. The template can be purchase as an individual download or as part of the internationally acclaimed and award-winning ISO 27001 Toolkit.
ISO 27001 Clause 4.1 FAQ
ISO 27001 clause 4.1 is the requirement of defining what the internal and external issues are to the organisation that directly impact the information security system and addressing or accepting them.
In February 2024 it was updated to include the need to document if climate change is a relevant issue.
The purpose of ISO27001 Clause 4.1 Understanding The Organisation And Its Context is to ensure you identify, manage and mitigate risks to the management system achieving its intended outcomes.
There are no changes to ISO27001:2022 Clause 4.1 in the 2022 update.
The ISO 27001 standard amended the definition of clause 4.1 in February 2024. This amendment, referred to as ISO 27001 Amendment 1: Climate action changes added climate change to ISO 27001 Clause 4.1.
Yes. It’s not sufficient to simply know them; you must also document them to demonstrate that you considered them. A best practice is to share these issues with the Management Review Team and document the fact that they were shared, signed off, and accepted.
ISO 27001 Clause 4.1 is important because it allows you to understand what can impact your information security management system so you can address it. By understanding the internal and external issues that could impact the information security management system allows to you to plan for them, mitigate and manage them and as a result increase in the effectiveness of the information security management system in meeting the business objectives and needs.
Understanding The Organisation And Its Context is important because you need to understand whether or not your management system is going to be effective. To do that you are going to spend time to identify any risks that could impact it.
There is a process of continual Improvement built into ISO 27001 that’s going to continually improve this management system but you need to make sure that you’ve documented and understood the issues and given your fledgling information security management system a fighting chance before it gets off the ground.
The following are benefits of implementing ISO 27001 Clause A 4.1:
Improved security: You will have an effective information security management system that address known internal and external issues that could impact it
Reduced risk: You will reduce the risk to your information security management system by identifying those risks and addressing them
Improved compliance: Standards and regulations require context of organisation to be in place
Reputation Protection: In the event of a breach having effectively managed risks to the management system will reduce the potential for fines and reduce the PR impact of an event
Responsibility for Understanding The Organisation And Its Context lies with Senior Management and the doing will be delegated to the information security manager.
Internal issues are factors within an organisation that can negatively impact the effectiveness of its Information Security Management System (ISMS). They are inherent risks originating within the organisation that can hinder the ISMS from achieving its objectives, particularly in safeguarding the confidentiality, integrity, and availability of information assets.
Internal issues originate within the organisation itself, such as lack of management commitment, inadequate resource allocation, or resistance to change.
External issues stem from factors outside the organisation’s direct control, such as economic downturns, regulatory changes, or competitive pressures.
Identifying internal issues is crucial for several reasons:
Risk mitigation: It allows organisations to proactively address potential threats and vulnerabilities.
Improved security posture: It helps strengthen security controls and reduce the likelihood of security incidents.
Enhanced compliance: It demonstrates a commitment to compliance with ISO 27001 and other relevant regulations.
Increased efficiency: It can streamline operations and improve overall productivity.
Enhanced reputation: It builds trust with customers, partners, and stakeholders.
Brainstorming sessions: Involve key stakeholders in brainstorming sessions to identify potential internal issues.
PESTLE analysis: Adapt the PESTLE framework to identify internal factors such as political, economic, social, technological, legal, and environmental issues.
Risk assessments: Conduct regular risk assessments to identify and evaluate potential threats, including those arising from internal factors.
Internal audits: Utilise internal audits to uncover potential internal issues and areas for improvement.
Regularly review and update internal issues at least annually.
Trigger events such as security incidents, internal audits, management reviews, and changes to risk assessments also warrant immediate review.
Lack of management commitment
Inadequate resource allocation
Lack of employee awareness and training
Poor communication and coordination
Resistance to change
Lack of regular reviews and updates
Inadequate access control management
Insufficient incident response planning
Implement corrective and preventive actions to address identified issues.
Improve communication and collaboration within the organisation.
Enhance employee awareness and training programs.
Allocate adequate resources to information security initiatives.
Obtain management commitment and support for information security.
Information security management team
Department heads
Employees at all levels
Internal auditors
Management representatives
Internal issues are essentially internal risks. Identifying and addressing these issues is a fundamental part of the risk management process within an ISO 27001 framework.
External issues are factors outside an organisation that can negatively impact the effectiveness of its Information Security Management System (ISMS). They are inherent risks originating outside the organisation that can hinder the ISMS from achieving its objectives, particularly in safeguarding the confidentiality, integrity, and availability of information assets.
External issues stem from factors outside the organisation’s direct control, such as economic downturns, regulatory changes, or competitive pressures.
Internal issues originate within the organisation itself, such as lack of management commitment, inadequate resource allocation, or resistance to change.
Identifying external issues is crucial for several reasons:
Risk mitigation: It allows organisations to proactively address potential threats and vulnerabilities.
Improved security posture: It helps strengthen security controls and reduce the likelihood of security incidents.
Enhanced compliance: It demonstrates a commitment to compliance with ISO 27001 and other relevant regulations.
Increased efficiency: It can streamline operations and improve overall productivity.
Enhanced reputation: It builds trust with customers, partners, and stakeholders.
Implement corrective and preventive actions to address identified issues.
Improve communication and collaboration within and outside the organisation.
Enhance employee awareness and training programs.
Join industry specific special interest groups.
Maintain contact with authorities.
Information security management team
Department heads
Employees at all levels
External auditors
Management representatives
External issues are essentially external risks. Identifying and addressing these issues is a fundamental part of the risk management process within an ISO 27001 framework.
Document internal and external issues within the Context of the Organisation section of the ISO 27001 documentation.
Use a table format with two columns: Issue Name and The Issue with a detailed description.
Further Reading
How to implement ISO 27001 Clause 4.1
ISO 27001 Clause 4.1 Implementation Checklist
How to audit ISO 27001 Clause 4.1
ISO 27001 Clause 4.1 Audit Checklist
ISO 27001 Clause 4.1 Understanding the Organisation and Its Context Explained
About the author
Stuart Barker is a veteran practitioner with over 30 years of experience in systems security and risk management.
Holding an MSc in Software and Systems Security, Stuart combines academic rigor with extensive operational experience. His background includes over a decade leading Data Governance for General Electric (GE) across Europe, as well as founding and exiting a successful cyber security consultancy.
As a qualified ISO 27001 Lead Auditor and Lead Implementer, Stuart possesses distinct insight into the specific evidence standards required by certification bodies. He has successfully guided hundreds of organizations – from high-growth technology startups to enterprise financial institutions – through the audit lifecycle.
His toolkits represents the distillation of that field experience into a standardised framework. They move beyond theoretical compliance, providing a pragmatic, auditor-verified methodology designed to satisfy ISO/IEC 27001:2022 while minimising operational friction.