By Noah Kessler
The widespread use of cloud service providers in the financial services industry continues to increase. According to a recent study by the Cloud Security Alliance, 91 percent of financial services organizations are actively using cloud services or plan to employ them within six to nine months. That is double the number reported four years ago.
After having evaluated the benefits, large financial institutions are embracing the cloud, resulting in its exponential growth in the industry. While the cloud delivers a raft of benefits, the pace of cloud adoption also has raised questions regarding the efficacy of risk management and compliance practices within CSPs. However, CSPs are well-positioned and highly experienced in practicing effective risk management. Mature and robust risk management practices and processes are embedded in every vertical and product line in leading CSPs.
Regulators, who regard CSPs as emerging technology organizations (in the same category as fintech and regtech companies), have been publishing guidance on the use of these various technology organizations and providers for nearly a decade. Until recently, however, the…
