Will the cloud change your risk forecast?
January 01, 1970 by Mark Dunn
Compliance Tips for Balancing the Risks & Rewards of the Cloud
While many companies have embraced cloud computing—to deliver enterprise-wide software-as-a-service (SAAS) or to back-up and store critical data—highly-regulated industries tend to keep their feet on the ground—or at least in the private cloud. Why are financial services, healthcare and other organizations so reluctant to take advantage of cloud technology? Find out more in our new eBook on understanding regulator expectations for outsourcing to the cloud.
Mitigating Risk when Outsourcing to the Cloud
Cost-benefit analysis has shown that leveraging the cloud reduces IT expenditures while improving business agility. With the cloud, companies can adapt and expand seamlessly. SAAS ensures that employees have access to the latest versions of applications they use daily. Cloud back-up and storage enables companies to lower capital expenditures and on-going maintenance costs for internal IT infrastructures that inevitably require updates or replacement. But if you think it sounds like a simple decision, you need to consider the latest guidance from regulators. While they acknowledge the importance of cloud technology for businesses—now and into the future—regulators also warn that not understanding the cloud's risks and compliance expectations could lead to serious consequences. Consider the reputational and financial fall-out of a data breach. High-profile breaches of customer data have rocked the healthcare industry in recent years.
And in 2016 Morgan Stanley paid a $1 million fine to the U.S. Securities and Exchange Commission for failing to adequately protect customer data after a former employee accessed data and downloaded it to his home computer. In announcing the fine, Andrew Ceresney, director of the SEC enforcement division, said, "Given the dangers and impact of cyber breaches, data security is a critically important aspect of investor protection."
In our eBook, Will the Cloud Change Your Risk Forecast?, we look at the latest guidance from regulators and how third-party due diligence and monitoring, along with maintaining an audit trail of those efforts, can help companies mitigate risks and realize the cloud's silver lining.
3 Ways to Apply This Information Now
1. Download the eBook to read more about regulator guidance for outsourcing to the cloud.
2. Learn how LexisNexis solutions complement your third-party risk mitigation workflow.
3. Share this blog on LinkedIn to keep the dialogue going with your colleagues and contacts.