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Can a company lose its ISO certification?

Phuong Pham
11 Jan 2022
5 min read

Yes, a company can lose its ISO certification if it fails to maintain compliance with the required standards. ISO certification is not a one-time achievement but an ongoing commitment that requires consistent adherence to established processes and quality management systems. Companies typically lose certification through failed surveillance audits, unresolved non-conformities, or significant changes in business operations that affect compliance. Once lost, recertification requires a complete new application process, often with increased scrutiny.

Understanding ISO certification and its importance

ISO certification is a globally recognized validation that an organization meets international standards for quality management systems, information security, environmental management, or other specific frameworks. When a company becomes ISO certified, it demonstrates to stakeholders that it follows standardized processes and meets rigorous quality requirements.

ISO standards (published by the International Organization for Standardization) provide a framework for organizations to ensure their services, processes, and systems consistently meet customer and regulatory requirements. Common ISO standards include ISO 9001 for quality management, ISO 27001 for information security, ISO 14001 for environmental management, and ISO 45001 for occupational health and safety.

The importance of ISO certification extends beyond regulatory compliance. It serves as a powerful trust signal for customers, partners, and investors. Organizations with ISO certification often enjoy improved operational efficiency, risk reduction, and enhanced market opportunities, particularly when bidding for contracts that require certification as a prerequisite.

Can a company lose its ISO certification?

Yes, a company can absolutely lose its ISO certification. ISO certification is not a permanent credential but rather a status that must be actively maintained through ongoing compliance with the relevant standards. Companies can lose their certification through failed surveillance audits, unresolved major non-conformities, or failure to implement required corrective actions.

Certification bodies conduct regular surveillance audits (typically annually) to verify continued compliance. If these audits reveal significant deviations from the standard requirements, the certification body may suspend or withdraw the certification entirely. Additionally, if a company undergoes major organizational changes without properly managing their impact on the management system, this can also jeopardize certification status.

It's important to understand that ISO certification represents an ongoing commitment to maintaining quality systems rather than a one-time achievement. This requires continuous monitoring, documentation, and improvement of processes to remain compliant with the standard's requirements.

What are the most common reasons for losing ISO certification?

Organizations typically lose their ISO certification due to several recurring issues that demonstrate a failure to maintain compliance with the standard's requirements. The most common reasons include inadequate documentation and deviation from established processes.

Common reasons for ISO certification loss include:

  • Failure to maintain required documentation and records
  • Not following documented procedures and processes
  • Neglecting to conduct required internal audits
  • Failure to address non-conformities identified in previous audits
  • Significant organizational changes without proper management of change
  • Leadership disengagement from the management system
  • Not conducting management reviews as required
  • Failure to demonstrate continuous improvement

Additionally, resource constraints often contribute to certification loss when organizations fail to allocate sufficient staff, time, or budget to maintain their management systems properly. This can lead to corners being cut and requirements being overlooked until problems are identified during surveillance audits.

How does the ISO decertification process work?

The ISO decertification process follows a structured approach when non-conformities are identified. When an auditor discovers issues during a surveillance or recertification audit, they categorize them as either minor or major non-conformities based on their severity and impact on the management system.

The typical decertification process includes:

  1. Identification of non-conformities during an audit
  2. Classification of issues as minor or major
  3. Formal notification of findings to the organization
  4. Setting a timeframe for corrective actions (typically 30-90 days)
  5. Review of corrective actions by the certification body
  6. Decision regarding certification status

For major non-conformities, the certification body may immediately suspend the certification, giving the organization a defined period (usually 3-6 months) to resolve the issues. If the organization fails to adequately address major non-conformities within the specified timeframe, the certification is withdrawn completely. For minor non-conformities, organizations typically have until the next audit to resolve them, but an accumulation of unresolved minor issues can eventually lead to a major non-conformity.

What happens when a company loses its ISO certification?

Losing ISO certification can have significant consequences for an organization, affecting everything from customer relationships to operational capabilities. The most immediate impact is often reputational damage and loss of customer confidence.

Consequences of losing ISO certification include:

  • Damage to company reputation and credibility
  • Loss of contracts that require ISO certification as a prerequisite
  • Exclusion from tender opportunities that specify certification
  • Potential regulatory challenges in regulated industries
  • Increased scrutiny from customers and partners
  • Need to remove ISO certification marks from all marketing materials
  • Potential breach of contractual obligations with existing customers

Beyond these immediate impacts, organizations may also experience internal challenges as they must now address the underlying issues that led to certification loss while simultaneously managing the external consequences. This often requires significant resources and can disrupt normal business operations until recertification is achieved.

How can organizations prevent losing their ISO certification?

Preventing ISO certification loss requires a proactive approach to compliance management rather than treating audits as periodic hurdles to overcome. Organizations should establish robust internal systems that maintain compliance continuously rather than scrambling to prepare for scheduled external audits.

Effective prevention strategies include:

  • Implementing a comprehensive internal audit programme
  • Ensuring proper documentation of all processes and activities
  • Providing regular training for staff on ISO requirements
  • Conducting thorough management reviews
  • Addressing non-conformities promptly when identified
  • Maintaining open communication with the certification body
  • Using technology solutions to automate compliance tracking
  • Integrating ISO requirements into everyday operations

Automation can play a crucial role in maintaining certification by ensuring consistent application of processes, providing real-time visibility into compliance status, and generating the documentation needed during audits. Using dedicated GRC (Governance, Risk, and Compliance) platforms to manage ISO requirements helps organizations move from reactive to proactive compliance management.

Can a company regain its ISO certification after losing it?

Yes, companies can regain ISO certification after losing it, but the process essentially starts from the beginning. Organizations must go through a complete recertification process, which is often more rigorous than the initial certification due to the previous compliance issues.

The recertification journey typically involves:

  1. Conducting a gap analysis to identify all areas of non-compliance
  2. Addressing the root causes that led to certification loss
  3. Implementing corrective actions and new controls
  4. Rebuilding the management system documentation
  5. Conducting thorough internal audits
  6. Performing management reviews
  7. Applying for a new certification audit
  8. Undergoing stage 1 and stage 2 audits as if applying for the first time

The timeframe for regaining certification varies depending on the complexity of the standard and the extent of the issues that led to decertification. Organizations can typically expect the process to take 6-12 months, during which they must demonstrate not only compliance but also the maturity and stability of their management system.

Key takeaways: Maintaining ISO certification with effective systems

Maintaining ISO certification requires a continuous commitment to quality and compliance rather than a periodic focus on passing audits. The most successful organizations integrate ISO requirements into their everyday operations and use automated systems to monitor compliance continuously.

Key strategies for long-term certification success include:

  • Treating ISO standards as business improvement frameworks rather than just compliance requirements
  • Engaging leadership in actively supporting the management system
  • Fostering a culture of quality and continuous improvement
  • Implementing regular internal checks rather than waiting for external audits
  • Using digital tools to streamline documentation and process management

At Cerrix, we understand that maintaining ISO certification can be challenging when relying on spreadsheets and manual processes. Our GRC platform helps you centralize your ISO compliance activities, automate documentation, track issues, and manage audits efficiently. We've designed our solution specifically to help regulated organizations maintain compliance with standards like ISO 27001, ISO 31000, and ISO 9001 while reducing the administrative burden typically associated with certification maintenance.

By implementing a structured approach to ISO compliance management, you can transform certification from a periodic stress point into a continuous business advantage that delivers real value to your organization and stakeholders. If you'd like to see how our solution works in practice, you can request a demo to experience the benefits firsthand.

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