Regulatory Cloud Frameworks — What are they, and why are they important?

It’s well-known that the cloud delivers unprecedented speed, agility, and flexibility. However, storing, processing, and transmitting sensitive data via third-party cloud service providers (CSPs) also brings with it inherent risks.

For this reason, companies operating in the cloud need to adhere to the required regulatory frameworks and standards of the industries and geographies in which they operate.

What is a regulatory cloud computing framework?

The key components of a cloud regulatory framework cover:

• Governance: how to best manage assets and deploy the correct configurations to help prevent vulnerabilities
• Change control: ensuring there are no safety issues when changes are made, something that’s made easier using automation
• Continuous monitoring: logging and monitoring of all activity is crucial to keeping organisations audit ready
• Reporting: this provides proof of compliance and provides critical evidence should compliance be questioned

Why are regulatory cloud frameworks important?

Because the cloud is so accessible, it creates networks that are open to vulnerabilities if they’re configured incorrectly. Cloud compliance frameworks guide Cloud Architects so they can employ the best practices and avoid potential security breaches. By aligning a company’s internal security policies to the correct regulatory cloud frameworks, companies can mitigate the risks of operating in the cloud.

And, by adhering to compliance standards, businesses will also maintain customer trust and avoid any reputation-busting penalties.

Examples of cloud regulatory frameworks

Cloud Security Alliance Controls Matrix: This provides a baseline for security vendors and gives customers insights into the risk position of prospective cloud providers.

Sarbanes-Oxley (SOX): These offer guidance to publicly traded companies on how to report financial data in order to protect customers from fraud or errors.

There are also some examples of security-centric compliance frameworks that apply to various industries and geographies for instance: HIPAA, PCI DSS, GDPR, ISO/IEC 27001, NIST and more. Some of these regulations apply to both on-premises environments and the cloud, while others are specifically related to cloud controls.

Who is responsible for compliance in the cloud?

It’s a common misconception that compliance is the responsibility of cloud providers alone. In fact, there’s a shared responsibility between both customer and cloud service provider. The CSP is generally responsible for “security of the cloud”, while the customer is responsible for “security in the cloud.”

The CSP is responsible for ensuring their platforms are compliant and secure — i.e., the hardware, software, networking, and facilities required to run their cloud services.

The customer takes responsibility for numerous factors, including the services they choose, the geographies they operate in, how they integrate cloud services into their IT systems, and the various legal issues that apply to their particular industry and workload.

AWS, Microsoft Azure, and Google Cloud all adhere to shared responsibility models that outline the responsibilities of each party.

How to choose the right cloud compliance network?

First, an organisation needs to understand the intended use of the cloud service, as well as the data that’s being stored and processed. It’s also important to identify which regulatory bodies govern their customers. The UK government issues a guide to risk management that can help you identify and manage cyber security risk.

Understanding cloud compliance is a crucial element in a company’s approach to network security, and, as regulations change all the time, maintaining compliance is an ongoing process.

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