ISO/IEC 27018:2025

In today’s digital economy, personal data is one of the most valuable assets an organization can hold. With the rapid adoption of cloud services, businesses are increasingly processing and storing sensitive personal information on third-party platforms. While the cloud offers agility and scalability, it also raises serious concerns about data privacy, regulatory compliance, and customer trust. To address these challenges, the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) developed ISO/IEC 27018, a globally recognized framework that provides guidelines for protecting Personally Identifiable Information (PII) in public cloud environments. Adopting ISO/IEC 27018 compliance is essential for organizations that rely on cloud services to process personal data securely.

What is ISO/IEC 27018?

ISO/IEC 27018, formally titled “Code of practice for protection of personally identifiable information (PII) in public clouds acting as PII processors”, was first published in 2014.

It is part of the broader ISO/IEC 27000 family of standards, which focus on information security and data protection. While ISO/IEC 27001 provides the foundation for Information Security Management Systems (ISMS), and ISO/IEC 27017 focuses on cloud security controls, ISO/IEC 27018 specifically addresses privacy in cloud environments.

The standard outlines best practices for cloud service providers (CSPs) that process personal data on behalf of their customers. It ensures that PII is handled with transparency, accountability, and compliance with global data protection regulations such as the General Data Protection Regulation (GDPR), HIPAA, and other privacy laws.

Why is ISO/IEC 27018 Important?

With the rise of cloud adoption, privacy concerns are at the forefront of digital transformation. ISO/IEC 27018 helps organizations and providers by:

1. Protecting Personally Identifiable Information (PII)
   It establishes guidelines to safeguard sensitive data such as names, addresses, health records, financial data, and any information that could identify an individual.
2. Enabling Regulatory Compliance
   The framework aligns with GDPR, HIPAA, and similar regulations, making it easier for organizations to demonstrate compliance during audits.
3. Defining Cloud Privacy Responsibilities
   It clarifies the responsibilities of PII controllers (the customer) and PII processors (the cloud provider), ensuring there is no ambiguity.
4. Building Customer Trust
   Certification against ISO/IEC 27018 shows that a cloud provider respects data privacy, which is a significant competitive differentiator.
5. Reducing Privacy Risks
   By adopting ISO/IEC 27018, organizations can minimize risks like unauthorized access, data misuse, or unintentional disclosure of PII.

Key Principles of ISO/IEC 27018

The framework is built on privacy principles designed to protect personal data in the cloud:

• Consent and Control: Cloud customers must retain control over how their PII is processed, including obtaining valid consent from individuals.
• Transparency: Providers must disclose how PII is collected, processed, stored, and deleted.
• Purpose Limitation: PII should only be used for the purposes agreed upon with the customer.
• Data Minimization: Only the minimum necessary PII should be collected and retained.
• Accountability: Cloud providers must establish clear processes for incident handling, audits, and compliance reporting.
• Data Subject Rights: Providers must support customers in fulfilling obligations such as access, rectification, or erasure of data.

Controls Introduced by ISO/IEC 27018

ISO/IEC 27018 expands upon the general controls of ISO/IEC 27002 and introduces cloud-specific privacy protections. Some of the key controls include:

1. Customer Control of Data
   Ensures that cloud customers, not providers, remain in control of how their PII is processed.
2. Contractual Clarity
   Cloud service agreements must clearly define responsibilities regarding data protection, breach notifications, and return/deletion of data.
3. Data Deletion Procedures
   Providers must securely delete PII once processing is complete or at the end of a contract.
4. Restrictions on Secondary Use
   PII cannot be used for marketing or advertising purposes without explicit consent.
5. Breach Notification
   Providers must promptly notify customers if a data breach involving PII occurs.
6. Audit and Compliance Support
   Providers must allow customers to audit or review compliance with ISO/IEC 27018 controls.
7. Subcontractor Obligations
   Any subcontractors handling PII must also comply with the same requirements.

These controls make ISO/IEC 27018 particularly relevant in multi-tenant and outsourced cloud environments, where multiple parties may be involved in data processing.

Benefits of ISO/IEC 27018 Adoption

For Cloud Service Providers (CSPs):

• Competitive Advantage: Certification signals strong commitment to privacy, attracting more customers.
• Global Recognition: Aligns with international regulations, making cross-border operations smoother.
• Improved Transparency: Builds trust by demonstrating ethical handling of customer data.
• Lower Legal Risks: Helps avoid penalties and reputational damage from privacy violations.

For Cloud Customers (PII Controllers):

• Assurance of Privacy: Customers can trust that their data and their users’ data is handled responsibly.
• Simplified Compliance: Reduces the burden of meeting multiple regulatory frameworks.
• Risk Reduction: Lowers the likelihood of data breaches and unauthorized data use.
• Better Vendor Relationships: Contracts and obligations are clearer, reducing disputes.

ISO/IEC 27017 vs. ISO/IEC 27018

While ISO/IEC 27017 and ISO/IEC 27018 are closely related, they have distinct purposes:

• ISO/IEC 27017: Focuses on cloud security controls such as virtualization, monitoring, and shared responsibilities.
• ISO/IEC 27018: Focuses specifically on privacy and protecting PII in public cloud environments.

For complete cloud trust, many organizations adopt both standards ensuring security (ISO 27017) and privacy (ISO 27018).

Who Should Adopt ISO/IEC 27018?

ISO/IEC 27018 is relevant for any organization that:

• Provides cloud services and processes PII on behalf of customers.
• Operates in regulated industries like healthcare, finance, or government where data privacy is critical.
• Manages sensitive personal data such as medical records, financial information, or employee details.
• Wants to build trust with global customers by demonstrating compliance with privacy regulations.

Even small and medium enterprises (SMEs) using cloud services benefit by ensuring that providers meet ISO/IEC 27018 requirements.

Steps to Achieve ISO/IEC 27018 Certification

1. Understand the Standard: Familiarize yourself with ISO/IEC 27018 requirements and compare them against current practices.
2. Conduct a Gap Analysis: Identify areas where privacy protections are lacking.
3. Implement Privacy Controls: Introduce policies and procedures for data deletion, breach notification, subcontractor management, and consent handling.
4. Integrate with ISO/IEC 27001: ISO 27018 works best when built on top of an existing ISMS.
5. Train Staff and Raise Awareness: Ensure employees understand their role in protecting PII.
6. Perform Internal Audits: Regularly assess compliance before seeking certification.
7. Engage an Accredited Auditor: Obtain official certification from a recognized body.

How Sahl Helps with ISO/IEC 27018 Compliance

Achieving ISO/IEC 27018 compliance can be complex, especially when managing cloud environments with multiple stakeholders and regulatory requirements. This is where Sahl’s Compliance Automation Software provides immense value.

Sahl simplifies compliance by offering:

• Automated Control Mapping: Aligns ISO 27018 requirements with ISO 27001, GDPR, HIPAA, and other frameworks.
• Real-Time Monitoring: Tracks privacy controls, data handling practices, and subcontractor obligations.
• Evidence Collection and Audit Readiness: Automatically gathers documentation to support audits.
• Shared Responsibility Visibility: Clarifies obligations between cloud providers and customers, ensuring nothing is overlooked.
• Continuous Compliance: Keeps organizations aligned with privacy requirements at all times, not just during audits.

For cloud providers, Sahl demonstrates transparency and builds customer trust. For customers, it ensures confidence that their PII is being handled in compliance with global standards. Ultimately, Sahl enables businesses to protect personal data, reduce compliance costs, and strengthen trust in their cloud operations.