Weighing the Risk of a Cloud Strategy
Author: John Weigelt
"The Economics of the Cloud" that effectively details the economics behind ITs shift towards the cloud.
While determining the actual location of cloud services is often a consideration, it shouldn’t necessarily overwhelm the risk management process when making the transition. It is essential that the question of location be put in the proper perspective when looking to leverage the cloud.
Organizations exploring cloud services should get a strategic understanding of their actual compliance obligations. This includes having a deeper appreciation for the local and international legislative framework, while also taking a pragmatic approach to managing the overall risk associated with the services that they deliver.
First steps include conducting a review of the compliance obligations for the service being delivered. These requirements may include privacy, security, audit, data retention, accessibility, reporting, and other service obligations. But this assessment cannot be done in isolation; CIOs and business leaders should work closely with their legal advisors to get a thorough understanding of what’s required. Any compliance review must be accompanied with a realistic assessment of the current operations.
When organizations review their current practices, they often recognize that their operations aren’t restricted by Canadian geography. By conducting a risk assessment, they may find that developing new security safeguards, operational controls and service level agreements provide greater assurance than current practices ever could.
With a clear view of the potential risks, organizations can move forward with a business case that illustrates the value against the potential change in risk. As organizations move to the cloud, organizations should look to the following five steps:
- Understanding all the compliance requirements
- Grasping the current environment (don’t gloss over the current practices)
- Recognizing any changes in risk – positive or negative
- Considering the advice of Canadian privacy experts
- Managing against the ROI
With a comprehensive understanding of the potential changes in risk, organizations can move forward with their business case to take advantage of the agility and cost savings associated with the cloud.
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