Key considerations for Financial Institutions (FIs) when establishing Cloud Service Provider (CSP) contracts from a risk and regulatory expectations
Nauman Noor
Public Cloud Engineering Leader | IT Strategy | Infrastructure | Lakehouse, Gen AI | GRC
This article would be of interest for those involved in contracting with and managing relationships with CSPs:
Over the past year, the ABA, FSSCC and SIFMA has worked closely with dozens of experts (including yours truly) at financial institutions (of all sizes) to develop a resource that can help banks better manage their relationships with cloud service providers (CSPs). “Financial Sector Cloud Outsourcing Issues and Considerations ” provides a list of key considerations for developing contractual language with cloud service providers to address risk and supervisory and compliance expectations when using the services. It also provides guidance to CSPs for how they should align their products to meet regulatory expectations of banks. ?
This paper was developed in response to the 2023 US Treasury Department?report ?that identified gaps in the financial services sector’s adoption of cloud services, including insufficient transparency to support due diligence and monitoring by financial institutions, exposure to potential operational incidents originating at CSPs, potential impact of market concentration in cloud service offerings on the sector’s resilience, and dynamics in contract negotiations given market concentration. The paper incorporates feedback from the major CSPs as well as several regulatory agencies.?
?The paper highlights 16 sections:
As adoption of proposed principles gains traction, it will provide a more robust and consistent basis for Fis, especially the smaller institutions, when it comes to managing their risks pertaining to use of cloud service providers.
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Reference Links
Overarching list - https://fsscc.org/published-documents/
[Focus of this article] Cloud Outsourcing Issues and Considerations - https://www.aba.com/news-research/analysis-guides/fsscc-cloud-outsourcing-issues-and-considerations-july-2024 Cloud Profile 2.0 - https://cyberriskinstitute.org/the-profile/
"Secure by Design" -https://www.fsisac.com/hubfs/Knowledge/Cloud/PrinciplesForFinancialInstitutionsSecurityAndResilienceInCloudServiceEnvironments.pdf
#ABA #FSSCC #SIFMA #PublicCloud
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2 个月Thanks for sharing this recap! It’s essential to stay informed on best practices and guidance to ensure robust, secure, and efficient cloud solutions.
"Common definitions recognized by financial institutions and regulators would aide in mapping critical dependencies more consistently and precisely." -- yes please also - aide? :)