How much does TISAX® certification cost?
In this article, we’ll explain what affects the cost of TISAX® certification, the types of costs you might face, ways to save money, and whether the benefits are worth it. Whether you’re new to the process or already know a bit about it, understanding the financial side will help you plan better and make smarter decisions.
What factors determine the cost of TISAX® certification?
The cost of TISAX® certification isn’t the same for every company. Several factors come into play and understanding them can help you better plan your budget. If a company already has strong security measures, such as ISO 27001 certification, then passing TISAX® certification usually takes less time and resources.
However, it is important to verify if the scope of the company’s work processes under ISO 27001 aligns with the TISAX® standard. The cost of TISAX® certification is also affected by the company’s complexity, which includes the following factors.
- Company assessment scope: Every part of the company that handles classified information of business partners in the automotive industry is part of the assessment scope. Companies can consider it as a major element of the audit provider’s task description. It dictates what the audit provider needs to assess. Therefore, the larger the given assessment scope, the more resources will be needed.
- Number of sites: If the company operates in multiple locations, especially across different countries, each site will need to be audited individually, which adds to the complexity and cost.
- Nature & number of processes: Companies manufacturing more complex parts (like engines) have more processes that need to be reviewed. Simpler operations, such as producing steering wheels, will usually have fewer requirements, resulting in a lower cost.
- Number of buildings: If the company has multiple buildings or campuses, especially those that include warehouses or transportation systems, it’ll need additional checks for physical security, which adds to the total cost.
- Number of external resources: Since the certification is provided by a TISAX® -accredited external auditor, their fees can vary based on experience, location, and the complexity of the work.
- Number of internal resources: These are the time and resources companies spend internally getting ready for the audit. This could involve training staff, updating processes, or investing in new security technologies.
Each of these factors contributes to the overall cost of TISAX® certification, so it’s important to evaluate the company’s specific situation to estimate the total expenses.
Types of TISAX® certification costs
During the TISAX® certification process, it is important to consider the different types of costs that may arise at each stage. These costs can be grouped into four main categories: fixed, variable, TISAX® implementation costs, and ongoing costs. Each type affects the total certification cost, and knowing about these expenses will help companies plan their budget better and use their resources more efficiently.
Fixed costs
These are one-time fees that are generally the same for every company:
- Registration fee: To start TISAX® certification, a company must undergo official registration on ENX Portal, which costs €475.
- Application fees: In some cases, companies might need to pay a fee to submit their application to the certification body.
Variable costs
During the TISAX® certification process, companies have to handle several compliance tasks. If they have enough resources and expertise, they can do it on their own. If not,
they can make things easier by hiring a consulting company. Either way, the cost of each task will depend on whether you use in-house experts or external specialists.
Compliance Aspekte can help with consulting services and offer a TISAX® implementation tool to guide you through every step, making the process smoother and more efficient.
Let’s look at examples of tasks and processes that companies should complete during the TISAX® certification and how many resources each of them may require. Consultant rates depend on various factors like expertise in TISAX®, seniority, and location. Generally, rates range from 100€ to 300€ per hour. For a practical example, let’s consider a rate of 100€ per hour.
- Scoping: This process helps define what part of the company will be evaluated. The scoping cost mainly depends on company size.
- Gap analyses: This assessment identifies what’s missing in the company’s current security measures. A gap analysis for a small company might take around 2 days. Therefore, if the specialist who will perform it charges 100€ per hour, the analysis could cost around 1600€.
- Internal assessments: Before the official audit, internal assessments help identify weak areas. A company can spend from several days to a week on these assessments.
- Documentation development: Creating security policies and updating procedures may take 2 days to a week, which leads to a cost from around1600€ to 4000€.
- Security awareness programs creation: After the new security protocols are implemented in the company, training for employees will need to be organized. The price of this training will depend on the size of the company and the number of employees.
- Official certification: Fees paid to the official certification body could range from 3,000€ to 10,000€.
- External audits: Auditors charge based on the complexity of your company’s operations, with fees commonly ranging from around 5,000€ to 15,000€.
- Corrective action plans: If issues are found, fixing them could cost anywhere from a few hundred dollars to tens of thousands, depending on the severity of the gaps.
- Follow-up audits: If the company needs a second round of audits after making changes, this can add additional expenses.
- Workshops: Specialized workshops to prepare the company’s team for certification could cost between 500€ and 3,000€, depending on duration and content.
Cost of implementing TISAX® requirements
If the audit uncovers issues, you may need to implement changes, which could include:
- IT system upgrades: Improving outdated technology to meet TISAX® standards could cost several thousand dollars or more.
- Physical security improvements: If the company’s buildings or warehouses need additional security measures, such as surveillance systems or access controls, this can be a significant expense.
- Process overhauls: Updating internal processes to meet the standards might require new software, restructuring teams, or even hiring new personnel, all of which can add to the cost.
- Third-party software integration: If your current system doesn’t meet TISAX® requirements, you will need to purchase a new compliant tool, which is also included in the cost.
Ongoing costs
TISAX® certification isn’t a one-time investment. Once certified, maintaining compliance and keeping the certification active requires ongoing attention. TISAX® recertification takes place every three years, with annual audits to ensure ongoing improvement. Many companies bring in consultants each year to help refine their Information Security Management Systems (ISMS). The annual company review typically lasts from a few days to a week.
The first certification is usually the hardest, but it’s important to keep improving, and consultants can really help with that. Even though recertification isn’t as tough as the first time, it still requires a detailed check of your documents and how well everything is being implemented in practice.
Let’s look at the ongoing processes companies face after TISAX® certification:
- Compliance monitoring and remediation: Regular checks and updates to ensure ongoing compliance can cost several thousand dollars annually.
- Audit and assessment renewals: Automotive companies need to renew their certification every three years, so resources will need to be allocated for new audits.
- Maintaining compliance: The internal company’s team will need to devote time and effort to keeping the company compliant. This internal cost might not always be obvious, but it involves labor costs and time spent on tasks.
- Continuous improvement and training: Security standards evolve, so regular staff training and system updates are essential.
- Software subscription: Using specialized tools for TISAX® certification can greatly simplify the process. Therefore, if companies use compliance software, there might be subscription fees.
- External consultation retainers: Some companies keep consultants on retainer to ensure continuous compliance, which can cost a few thousand dollars per year.
By understanding these different types of costs, companies can better plan and manage the budget needed for both achieving and maintaining TISAX® certification.
Real-world examples of the TISAX® certification cost
As was discussed above, the path and costs of TISAX® certification can vary greatly depending on whether a company is already ISO 27001 certified or starting from scratch. We have prepared 2 examples to see how these situations may differ. However, it should be remembered that there can be a million different scenarios, and each case will depend on the particular company. You are always welcome to contact us for estimating the TISAX® project for your company.
Optimistic case: ISO 27001 certified
For a company that’s already ISO 27001 certified, the journey to TISAX® certification can be relatively fast and easy. In this case, the company would begin with a gap analysis to check for alignment with TISAX®. Since ISO 27001 covers many of the same areas as TISAX®, this analysis is often straightforward and might take just a couple of days for a smaller company.
Once the gaps are found, the company can update its TISAX® documentation using tools that connect both standards. If the company already has a strong ISO 27001 foundation, getting ready for the TISAX® audit could take about a week, including all the paperwork and prep. Companies that have been ISO 27001-certified for a while might not need much preparation since they’re already used to the process.
Compliance Aspekte is an integrated tool that supports the implementation of both ISO 27001 and TISAX® standards, offering a streamlined compliance process by allowing the reuse of assets, controls, and compliance elements across multiple standards. For example, assets managed under ISO 27001 can easily be extended to meet TISAX® requirements without duplicating efforts. If you want to know more about Compliance Aspekte tool, get in touch with us.
More complex case: No ISO 27001 certification
For companies without an existing ISO 27001 certification or its measures, the road to TISAX® can be more challenging, especially if they operate multiple sites in different countries. The process begins by defining necessary policies and guidelines, which is a significant task that varies depending on the company’s business activities. Without an in-house information security manager, the company would need to hire one temporarily. After establishing policies, a gap analysis is conducted across all sites to ensure compliance, which may involve site visits to verify that the same processes are followed everywhere. For a company with multiple international sites, this step can be time-consuming and resource-requiring.
Starting from scratch means the entire process may take over a year, as the company needs to develop and test its Information Security Management System (ISMS) thoroughly before certification. If only a few resources are available, the timeline could stretch to two or three years. The number of consultants and their level of expertise also impact the duration and cost. Consultants can speed up the certification process if a company has complex processes.
For example, a company with four sites may decide to certify only one at first. With an internal information security officer and minimal external consulting, they might complete the project in about three months, using external support for only a couple of weeks.
Estimating TISAX® certification cost: A real-world example
Let’s look at an example to understand how much TISAX® certification might cost for a company. Imagine a company with the following setup:
- Locations: Germany, France
- Number of sites: 4
- Sites targeted for certification: 1
- Internal information security officers: Yes
- Duration of internal preparation: 3 months
- Duration of external consulting support: 2 weeks
- Number of consultants: 1 consultant
- Internal rate: 70€
- Consultant rate: 100€
To estimate the approximate cost of TISAX® certification, we can use the following formula:
Based on this formula, the approximate cost of TISAX® certification for this company would be:
(528 hours * 70€) + ((100€ * 1 consultant) * 80 hours) + 500€ + 10000€ = 55,460€
However, it’s important to remember that this is just an approximate cost for a company with specific characteristics. The price will vary for each company depending on the factors we discussed earlier.
If you would like to get a specific estimate for your company, please get in touch with our team.
How to optimize TISAX® certification costs?
Getting TISAX® certified can be expensive, but there are smart ways to keep the costs down. Here are some tips to help you optimize your spending:
Start preparing early
The earlier you start checking your current security systems, the better. Preparing early gives you more time to fix any issues, avoid rushing at the last minute, and stop expensive mistakes from happening. Make sure to review your processes and spot areas that need improvement way before the actual audit.
Work with experienced TISAX® consultants
Hiring experienced consultants can actually save you money over time. Even though they charge fees, their expertise makes the certification process go smoothly and efficiently. They guide you through each step, helping you avoid costly delays and making sure your company meets all the requirements the first time. Our TISAX® consultants offer expert guidance to help your organization meet all the TISAX® standards. Whether you’re just starting out or need help improving your compliance processes, we’re here to support you every step of the way.
Manage TISAX® implementation in a GRC tool
Using compliance tools like Compliance Aspekte ISMS is another smart way to save money. These tools make it easier to manage security standards and help you stay on top of TISAX® requirements. By automating things like documentation, assessments, and compliance tasks, you can cut down on manual work and save time and resources while working towards certification.
Save on recertification
Once you’re certified, maintaining your compliance becomes an ongoing process. Instead of starting from scratch during recertification, you can store and organize all your security-related documents and data in an ISMS system. When it’s time to renew your certification, you only need to update your records rather than doing everything over again. This reduces both time and costs for future audits.
Moreover, in Compliance Aspekte, you can accelerate TISAX® implementation by reusing assets, controls, and compliance data from ISO 27001. Since many requirements overlap, Compliance Aspekte allows you to apply existing compliance information to TISAX®, minimizing redundant work. This ensures consistency across standards, reduces manual effort, and significantly shortens the time needed to achieve TISAX® compliance.
TISAX® certification benefits that justify the costs
Although TISAX® certification can be costly, the advantages it brings more than make up for the investment. Here’s why the certification is worth it:
Increased trust from clients and partners
TISAX® certification shows that your company takes data security seriously. This builds trust with clients and partners, making them more likely to work with you, knowing their sensitive information is in safe hands.
Improved internal security and reduced risks
Getting certified helps you improve your security systems, which lowers the chances of data breaches, cyberattacks, and other security problems. In the long run, this means you’ll face fewer emergencies and avoid unexpected costs that come from fixing security issues.
Compliance with automotive industry standards
Many automotive companies need TISAX® certification to operate. By getting certified, your company not only meets important standards but also becomes more competitive in the market.
Enhanced reputation
Being TISAX® certified adds to your company’s reputation as a reliable, security-conscious business. This recognition can help you attract new customers and stand out from competitors who don’t have the certification.
Streamlined processes
Through the certification process, you’ll identify weak spots and inefficiencies in your current workflows. Fixing these will not only help with security but also improve the overall efficiency of your operations.
Long-term cost savings
Even though the initial certification process costs money, the improvements in security and operations can save you money in the long run. By lowering the risk of data breaches and operational problems, you can avoid expensive repairs and downtime.
Conclusion
The cost of TISAX® certification can vary a lot based on different factors that are unique to each company. If your company is already ISO 27001 certified, the TISAX® certification process can be quicker and cheaper. Even with the potential costs, getting TISAX® certification provides big benefits that make the investment worth it, improving your company’s security and credibility in the automotive industry.
Using tools like Compliance Aspekte can help you optimize your certification costs. Our experts and consultants are here to help you prepare for certification. Don’t hesitate to reach out to us for support!
FAQ
What factors influence the cost of TISAX® certification?
The cost of TISAX® certification depends on a few things, like how many locations are being audited, the level of security needed (AL 1, AL 2, or AL 3), the fees for the auditors, the amount of preparation required, and any upgrades you need to meet TISAX® standards.
Are there ongoing costs after obtaining TISAX® certification?
Yes, there are some ongoing costs after you get certified, like regular assessments and internal audits to stay compliant. Every three years, you’ll need to go through recertification, which comes with the cost of another audit.
Can we reduce the cost of TISAX® certification?
You can lower the cost of TISAX® certification by preparing well before the audit. This includes doing internal checks, fixing any gaps ahead of time, and making sure your security measures meet TISAX® standards. Working with an experienced consultant can also help you simplify the process and avoid extra costs.
Is TISAX® certification worth the investment?
Even though it can be expensive, TISAX® certification is worth it if you’re in the automotive industry. It helps build trust, ensures security, and shows you meet industry standards, which can open up more business opportunities. Plus, it can help you avoid costly data breaches or fines in the long run.
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