This post has been republished via RSS; it originally appeared at: Financial Services Blog articles.
Financial institutions are looking to cloud computing technologies to reduce costs, improve agility, and differentiate their services. Although the benefits are clear, there are certain risks with the cloud that must be evaluated in context of the cloud service providers (CSPs) that you are considering. It’s important to remember that not all CSPs are the same.
In the United States, financial institutions are required by bank regulators under the Federal Financial Institutions Examinations Council (FFIEC) to manage third-party relationships using risk-based policies and procedures that are commensurate with the level of risk posed by the outsourced activity. Financial institutions must manage their risk by understanding the control framework and operating environment of CSPs, and continue to have oversight of them.
Financial institutions can help ensure a successful cloud deployment by following seven principles based on requirements established by the FFIEC and Microsoft’s extensive experience working with financial institutions in the United States.
The principles are:
- Conduct a cost-benefit analysis
- Perform due diligence
- Enter into clear contracts with CSPs
- Ensure effective oversight and monitoring of the CSP
- Ensure the confidentiality and security of personal and financial information
- Develop and test contingency plans and exit strategies
- Maintain appropriate records of the CSP relationship
By following these principles, financial institutions in the United States can navigate regulatory requirements applicable to the use of cloud services. Microsoft is ready to support financial institutions in implementing these principles, so they can deploy cloud services with confidence and take advantage of the benefits of digital transformation.
Click here to download a free whitepaper that provides recommended implementation practices, organized by these seven principles. You’ll learn the key United States federal regulatory requirements and recommended implementation practices that guide the use of cloud computing services financial institutions in the United States. Microsoft is ready to support financial institutions in implementing these principles, so they can deploy cloud services with confidence and take advantage of the benefits of digital transformation.