How crucial is adoption of ISO 27001 for an organization?

ISO stands for International Organization of Standardization is a standard for information security management system (ISMS). It defines requirements an ISMS must meet.
This standard provides organizations guidance for establishing, implementing, maintaining and continually improving an information security management system.
Compliance with ISO 27001 means that an organization has put in place a system to manage risks related to security of data owned by the company and this system respects all the best practices and principles in the international standard.

Why is ISO 27001 important ?
Since the threat landscape is evolving every day and new threats are constantly emerging it is highly impossible to manage information-related/cyber risks.
This ISO 27001 framework helps organizations to become more risk aware and proactively identify and mitigate the risks.
This framework provides a holistic approach to information security including people, processes and technology giving organization an operational excellence.

Know your Assets –
Every organization should understand the importance of inventorying their assets for example., informational assets, physical assets, services, people, intangible assets etc.
Until an organization finds out their assets they will not be able to determine the risks associated with them.

What is Risk ?
Risk is a likelihood or an impact or an adverse event that may negatively affect an organization in terms of reputation, revenues etc.

After knowing and inventorying your organization’s assets, the next phase is to perform a thorough risk assessment. Objective of this phase is to identify asset value, class of asset, what are threats associated with these assets, vulnerability and risk impact etc.

Risk assessment phase is an ongoing activity in the ISMS lifecycle. Plan, Do, Check and Act is a cycle with an overall focus on using risk-based thinking to take advantage of opportunities and prevent undesirable results.

Stakeholder and Leadership Commitment
Leadership will govern and commit to establish an information security policy within the organization. It is highly advisable that leadership will define the scope and applicability towards the organization.
They will define responsibilities and accountabilities during the implementation of the policy and ISO.