06 May 2015

US regulators warn on outsourced cloud risks

11 July 2012  |  7721 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)

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
Visa Europe opens innovation hub
9875 views comments | 38 tweets | 21 linkedin
Barclays launches £100 million fund f...
6439 views comments | 22 tweets | 11 linkedin
Malawi takes steps to create a digital pay...
5304 views comments | 18 tweets | 10 linkedin
Steve Wozniak joins board of blockchain-ta...
5189 views comments | 51 tweets | 18 linkedin
Goldman Sachs invest in Circle
5146 views comments | 6 tweets | 7 linkedin

Featured job

Basic £85-110K dependent on experience OTE circa £...

Find your next job