April 2014
Cloud computing is a landscape-altering technology that is enjoying increasing rates of adoption — often implemented, however, without taking sufficient risk management precautions. Risk managers need to have a deep understanding of what cloud computing is, and why they need to be aware of it. While there are numerous advantages to adopting the cloud, there are also abundant risks, and having a comprehensive risk management plan in place is critical.
“Cloud computing has the potential to become the defining utility of this century, just as electricity was for the twentieth. This technology is poised to do nothing less than redefine and take over the IT landscape and, with it, the way companies around the world do business,” said Mr. Merrill. “It is important for risk managers to recognize that a majority of companies, both large and small, are already utilizing the cloud for some aspect of their business. However, only a small percentage of those companies, or their risk managers, are fully aware of the risks. As a result, most companies have not taken the appropriate measures to mitigate those risks.”
Organizations face many challenges in adopting the cloud and its related technology, but these can largely be overcome with a rational risk-based analysis. This paper, the second in ACE’s series of technology white papers, is designed to give risk managers an overview of the many benefits of cloud computing, as well as ways to proactively mitigate potential risks.
So the questions that every risk manager must inevitable answer are these:
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What is the optimal way to balance all the benefits of cloud computing against all of its potential risks?
- What are the best and most appropriate risk management tools for mitigating those risks, withougt losing all that the cloud has to offer?