27 August 2015

US regulators warn on outsourced cloud risks

11 July 2012  |  7852 views  |  0 Statue of Liberty

US financial services regulators have warned banks that they need to put in more robust controls if they plan to use third party cloud services.

With banks increasingly attracted to outsourced cloud computing as a way to cut costs and improve flexibility and scalability, the Federal Financial Institution Examination Council Agencies (FFIEC) has issued a statement stressing that the associated risks of the technology need to be considered.

Use of third parties does not diminish the responsibility of firms to make sure that the outsourced work is "conducted in a safe and sound manner and in compliance with applicable laws and regulations".

This means carrying out full due diligence and risk assessment, covering things such as vendor management, information security, audits, legal and regulatory compliance, and business continuity planning.

While the benefits may outweigh the concerns for some, concludes the FFIEC: "As with other service provider offerings, cloud computing may not be appropriate for all financial institutions."

Read the full statement here:» Download the document now 56 kb (PDF File)
KeywordsCLOUD

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

25 April, 2012
02 March, 2012
26 January, 2012
11 January, 2012
01 November, 2011
07 October, 2011
27 May, 2011
04 November, 2010
13 October, 2010
27 May, 2010


Top topics

Most viewed Most shared
The Clearing House calls for tighter contr...
7505 views comments | 20 tweets | 35 linkedin
Uber introduces Airtel Money payment optio...
6234 views comments | 13 tweets | 6 linkedin
Android Pay could launch this week
6004 views comments | 26 tweets | 22 linkedin
Intuit to sell Quicken
5530 views comments | 12 tweets | 7 linkedin
FIS opens Indian financial inclusion lab
5447 views comments | 14 tweets | 2 linkedin

Featured job

Basic £90-110K OTE circa £200K NO CEILING
London based with substantial travel in Scandinavia

Find your next job