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Looking at IT Governance Through the Clouds |
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For the majority of organizations, the use of Service Level Agreements (SLAs) provides the answer to most of the issues between provider and customer. However, no number of SLAs can satisfy the customer organization’s responsibility to exercise due diligence in satisfying itself and its auditors that core business functions run via a Cloud Computing environment are properly managed, controlled, resilient to disruptions, safe from disasters, safe from theft and misuse and more. Once the information asset is no longer under the control of the enterprise, things get rather dicey. While traditional environments are subject to the same governance requirements as Cloud Computing, the inherent loss of control of data and the difficulty in identifying and troubleshooting transaction failures raises a whole new set of issues. The risk factors, while statistically may seem lower than traditional environments, are in fact much greater. Basically, when an organization uses Cloud Computing resources, it has abdicated its ability to effect repairs and recovery of systems and data should something go terribly wrong. To management and auditors this poses a substantial problem. All the guarantees in the world are meaningless if the provider can’t indemnify the using organization against harm, and quantifying that harm could be close to impossible. In the name of cost savings, speed of deployment and application flexibility, organizations could unknowingly be risking their very existence should a catastrophic disruption in service occur. The damages to a billion-plus-dollar enterprise could literally be the entire value of the enterprise. And should that catastrophe effect multiple organizations, then what? Don’t get me wrong, the potential of Cloud Computing is amazing and hard to resist. However, the risks are equally amazing as mission critical applications and data are taken out of the control of the enterprise accountable for their integrity, security and control. Therefore, when choosing a provider it is imperative extended due diligence be performed by an independent third party. Please login/register to read the entire article.
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