Cloud computing is an efficient and cost-effective way of housing data and is becoming a mainstay for data services and infrastructure across the globe. According to the International Data Corporation (IDC), cloud computing spend is estimated to reach $277 billion in 2021, with an annual growth rate of approximately 22%.
The financial services industry is often cautious about moving data to the cloud, and rightly so with a heavy concentration of customers’ private information. Security breaches involving cloud computing highlight the importance of sound security controls and a clear understanding of cloud service providers’ risk management policies.
On April 30, 2020, the Federal Financial Institutions Examination Council (FFIEC) issued a joint statement highlighting best practices for a financial institution’s safe and sound use of cloud computing services and safeguards to protect customers’ sensitive personal information. The statement does not address new regulatory expectations; rather, it outlines risk management best practices that give financial institutions confidence in moving to the cloud.