Research Risks Associated With Cloud Adoption
The first step in assessing risk in cloud computing will be to identify and describe risk concepts and cloud computing risk factors associated with cloud adoption. As a software as a service (SaaS) company considering an infrastructure as a service (IaaS) cloud service provider for your hosting needs, consider third party outsourcing issues and the generally accepted best practices for cloud adoption and review relevant cloud risk case studies. You should also consider best practices for cloud adoption.
As part of the risk management process, identify and describe other types of risk, such as risks associated with having a service-level agreement (SLA). An example of a potential risk could be if your company is obligated to protect personal information, and then the cloud provider that you use suffers a security breach exposing that personal information.
Here, identify and describe other types of risks or potential liability issues that apply to BallotOnline and discuss them with your colleagues in the Discussion: Risk forum
Sample Solution
- Data security: As a SaaS company that collects and stores personal information, BallotOnline is at risk of a data breach. This could happen if the cloud provider is hacked, or if an employee of the cloud provider misuses their access privileges. If BallotOnline's data is breached, it could lead to identity theft, financial losses, and reputational damage.
Full Answer Section
- Compliance: BallotOnline is subject to a variety of compliance regulations, including the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). If BallotOnline fails to comply with these regulations, it could face fines and penalties.
- Vendor lock-in: BallotOnline is reliant on its cloud provider for hosting its applications and data. If the cloud provider goes out of business or decides to discontinue its services, BallotOnline could be forced to switch to a new provider. This could be a costly and disruptive process.
- Performance: BallotOnline's applications and data are hosted in the cloud. If the cloud provider's infrastructure is not reliable or performant, it could impact BallotOnline's ability to provide its services.
- Security: The cloud provider has access to BallotOnline's applications and data. If the cloud provider's security measures are not adequate, it could lead to a data breach.
In addition to these risks, BallotOnline also faces potential liability issues. For example, if BallotOnline's data is breached and someone's identity is stolen, BallotOnline could be sued for negligence.
BallotOnline can mitigate these risks by taking the following steps:
- Conduct due diligence on the cloud provider and make sure that it has a good reputation and a strong track record of security.
- Negotiate a comprehensive SLA with the cloud provider that specifies the level of service that is expected.
- Implement security measures to protect its data, even in the cloud.
- Monitor the cloud provider's security measures and make sure that they are up to date.
- Regularly test the cloud provider's infrastructure to make sure that it is reliable and performant.
- Encrypt its data before it is stored in the cloud.
- Use a cloud provider that is located in a country with strong data protection laws.
By taking these steps, BallotOnline can reduce its risk of a data breach and other problems. However, it is important to remember that no cloud provider is completely immune to risk. BallotOnline should always be prepared for the unexpected and have a plan in place to respond to a security incident.