Over the last few years, cloud computing technology has grown at an exponential rate. It has several advantages for both individuals and businesses. At the same time, several difficulties have developed as a result of the rapid expansion of cloud computing.
Organizations frequently express worries regarding cloud computing migration and usage owing to the loss of control over their outsourced resources, and cloud computing is subject to hazards.
As a result, a cloud provider must manage the risks associated with the cloud computing environment in order to identify, assess, and prioritize those risks in order to reduce those risks, improve security, boost confidence in cloud services, and alleviate organizations’ concerns about using a cloud environment.
Need of Risk Management
The benefits of migrating from old in-house systems to the cloud are apparent for financial organizations. A cloud environment allows financial organizations to operate at a faster and more agile pace than their present settings.
However, although mobile technologies provide us with tremendous power and convenience, they also pose significant security and privacy problems.
Financial organizations confront a similar quandary: although going to the cloud makes sense for a variety of reasons, it also introduces new problems. Cybersecurity risk is at or near the top of any institution's list of worries.
Simultaneously, new cybersecurity laws and recommendations are being issued by regulators and auditors.
Institutions could consider adopting a centrally managed platform and related services to build a uniform and scalable control structure to deter hackers and satisfy regulatory requirements while also managing expenses.
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A cloud ecosystem has the following characteristics:
• Broad network connectivity
• Cloud consumers have less visibility and control.
• Changing system boundaries and overlapping roles/responsibilities between cloud Consumers and cloud providers.
• Multiple tenancies
• Data retention
• Measurable service
• Significant expansion in size (on demand), dynamics (elasticity, cost optimization), and complexity (automation, virtualization).
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When recent trends and research on cloud computing are considered, it is apparent that, after the Internet, it is the time of cloud computing to determine the future of computing.
The debate is no longer "to cloud or not to cloud," but rather "when will the transition occur" and "which operations will migrate to the cloud." In this blog, we will attempt to complete a full cloud risk management exercise.
Facets of Cloud Risk Management
Cloud-based Cyber Risk Management pillars
Comprehensive Risk Management
Comprehensive risk management would, of course, begin with a comprehensive risk management framework, which would include everything from detecting and assessing cyber risk to factoring cyber risk into the institution's total risk appetite.
Furthermore, minimizing the risks associated with cloud migration necessitates incorporating cyber risk management within the institution's enterprise risk management operations.
When understanding the risks to the enterprise, it may give top management better insight into hazards and essential data.
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As the complexity and frequency of cyber threats rise, organizations should create a comprehensive cybersecurity program.
They should concentrate on finding vulnerabilities, deploying solutions to protect important business data, detecting potential threats that have infiltrated the infrastructure, and assisting essential business applications and systems in responding to and recovering from incidents.
Given that executives at financial institutions are under enormous pressure to maintain the integrity of their data, keep their customers' sensitive information safe, be fully versed on evolving threats and challenges, and prepare for threats they have not yet seen, it is critical for an institution to establish an aggressive, analytics-driven solution to identify, manage, and mitigate threats.
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In light of these problems, authorities all over the world are continuing to act by releasing and updating recommendations on cloud computing and how to avoid and respond to cyber-attacks. Without automation, the expenses of maintaining a risk staff to remain on top of these rules will skyrocket.
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Backup and recovery
Almost every company does frequent backups. However, very few businesses actually undertake frequent restoration to ensure the functionality and sufficiency of backups, resulting in unpleasant shocks at the last minute.
Cloud companies have this step-down path since the consequences of a blunder will be devastating to their business. Again, this is a two-edged sword that is depending on the cloud provider's rules, which may or may not be sufficient for your organization's needs.
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Instituting an end-to-end cyber risk framework
While keeping your company's goals in mind at all times, there are a few key fundamental measures to take while creating a good cloud-security plan.
It all starts with creating a high-level strategic approach to risk assessment and management that is tailored to your company's needs – there is no one-size-fits-all solution.
This involves developing a budget that is reasonable, practical, and attainable, as well as a deployment plan.
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Many companies are unable to roll out patches on time, or even discover the appropriate patches, for a variety of reasons such as a lack of a suitable knowledge base, time, or testing infrastructure.
Most cloud providers do not have these weaknesses, guaranteeing that the platforms and apps you use on such cloud settings are properly up to date.
This is a two-edged sword because vulnerabilities are found in several cloud providers. Organizations with reasonably developed procedures ensure things such as timely internal system changes and sufficient testing.
The same cannot be true for cloud providers owing to a lack of visibility and openness.
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The inclusion of third-party suppliers in cloud business models has raised security issues. Many cloud providers are undergoing official third-party security assessments, such as the International Organization for Standardization (ISO), Service Organization Control (SOC) 2, and the Federal Risk Authorization and Management Program (FedRAMP).
To prevent security problems, you should concentrate on establishing a corporate public cloud strategy that includes security guidelines on approved SaaS usage.
You will need to understand how to include procurement and sourcing solutions into this approach. You may also establish and enforce policies on use responsibility and risk acceptance processes in the cloud.
It is important to employ a life-cycle governance model that stresses ongoing operational management of your public cloud utilization.
The process of transferring apps, data or even the whole corporate IT infrastructure to distant server facilities and a virtual environment is known as cloud migration.
The benefits of cloud migration are numerous. The cloud architecture allows for the acceptance of any workload, and the simplicity with which new services may be added allows for rapid response to changing business demands.
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Several companies are still delaying cloud adoption due to dependability and security concerns. Otherwise, people might not find it useful.
Organizations can save money by migrating to the cloud. Companies may save a lot of money by migrating to the cloud, especially in the long run. When compared to on-premise hardware, the cloud requires no initial expenditure.
When employing on-premise infrastructure, you may encounter capacity difficulties. However, by utilizing cloud technology, you may entirely eliminate capacity issues.
Many businesses discover that one of the primary hazards they encounter during cloud migration is the complexity of their current IT architecture. Extra delay is one of the most underappreciated concerns of cloud migration.
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This can happen when you access cloud-based databases, apps, and services. If you have apps that require fast answers, even a delay of a few seconds can have a significant impact on your business.
To eliminate latency issues, you must first identify their root causes, which include incorrect QoS (Quality of Service) and geographical distance between servers and client devices.
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These are the essential pillars of a well-implemented and managed system for mitigating cyber risk. Each is critical and important on its own, but they also function together to build a full cyber risk solution.
Because no two financial institutions are identical, each should consider a customized platform to best suit their needs and operations.