Cloud Compliance Overview: How To Achieve it ?

Cloud computing undoubtedly provides agility and flexibility to businesses. But with all the benefits it affords, it also introduces inherent security risks. Each cloud infrastructure type has its inherent vulnerabilities and this makes it essential to ensure that the provider upholds the highest standards of security and meets regulatory requirements.

Without understanding these risks and compliance requirements, you risk choosing the wrong provider; this could lead to data breaches, penalties, legal issues, and reputational harm. In this blog, we discuss vital tips to keeping your data safe in the cloud.

What is cloud compliance?

Cloud compliance refers to adhering to regulatory laws, legal requirements, and industry standards when using cloud-based services to ensure data security and privacy. It governs the use of cloud resources to ensure they are used responsibly and to minimize any cybersecurity risks.

Much like in driving, where drivers must always follow state and country traffic laws, organizations must also adhere to cloud regulations to maintain data security and confidentiality to conduct business in a particular region. There could be an interplay between local, national, and international regulations, industry standards, and international standards, and you need to ensure that your provider does not put you at risk of violating any of these compliance requirements.

Some top compliance standards accepted internationally for cloud environments include SOC 2, ISO 27001, NIST, PCI DSS, HIPAA, and more. Compliance gaps can lead to unauthorized access, heavy fines, lawsuits, failures in Service Level Agreements, and reputation losses. It’s not a matter of penalty evasion but of how you win customers’ trust and protect your brand.

Why is cloud compliance essential?

Cloud compliance shows the world that you care about the data of your customers, business partners, and stakeholders. People do business with those they trust, and compliance is the currency of trust as it helps you showcase that your standard for data security and security controls are acceptable to a universally held standard (compliance framework).

Why invest in cloud compliance?

Companies need to invest in cloud compliance as it is the first line of defense against security threats and privacy breaches. A good cloud compliance framework can help businesses minimize risk, avoid penalties and gives them a competitive edge in larger enterprise deals where security posture is a differentiating factor. 

1. Helps build trust and manage risk

Compliance measures matter since they protect customer’s confidential information from unauthorized persons and prevent breaches. By adopting these cloud security compliance requirements, businesses protect people’s sensitive information and minimize operational and reputational risks. Compliance reports or compliance status helps build customer trust as it is seen as a measure of resilience against threat actors.

2. Avoid legal penalties

Depending on where you do business, you need to be compliant with frameworks laid out by the authorities, for example, to conduct business in the European Union, your cloud server would need to be GDPR compliant. A company that does not meet this may face steep fines for any compliance violation and can be forced to cease operations until they get the necessary compliance certifications and meet the necessary compliance objectives. 

3. Gives a competitive edge

Comprehensive compliance measures for cloud platforms can aid in establishing business differentiation amidst a competitive marketplace. Demonstrating commitment to data security and ethical practices makes it possible to win the attention of customers and partners who are conscientious about data integrity within their operating systems.

6 Steps to Ensure Cloud Compliance

Here’s how you can navigate the complexities and ensure compliance with confidence. From analysis of compliance controls to security requirements, ensure that you take into account the following considerations for cloud compliance management: 

1. Start with goals, outline policies and frameworks based on them.

Define objectives, identify applicable frameworks, policies, regulations, and rules, assign roles, and determine the procedures. A thorough and well-planned goal document is like a map used to maintain compliance and address regulatory complexities and help you get on the same page especially when working with a vendor.

2. Do a comprehensive risk analysis while onboarding. 

The best way to ensure compliance is to gatekeep at the starting line to ensure that you have a strong filter for onboarding your cloud vendor. Ensure you clearly understand what frameworks are important to your business, what compliances you need, and what measures are must-haves and good-to-haves internally before looking for a cloud vendor. Once you have all of these requirements, bake that into your RFP.

3. Create a governance and responsibility system with SLAs

Kick off your compliance process by working out the responsibility model. This model defines the roles of your Compliance team and those of the cloud service providers, which minimizes all security ambiguities and guarantees accountability. Be it Infrastructure as a Service (IaaS), Platform as a Service (PaaS) or Software as a Service (SaaS), clear split of roles and responsibilities plays a critical role in keeping compliance risk in check. It should also demarcate which party is responsible for different types of compliance tasks, compliance obligations and compliance failures. The best way of giving your Governance model teeth is to bake it into SLA (service level agreement) so if the cloud vendor violates it, there is grounds for termination of contract and also a clear understanding of the process for the same and the costs to be incurred. 

4. Keep all your documentation shareable and referenceable.

Instill and maintain an updated rigorous documentation process to support compliance measures. Ensure you have a shareable repository of policies, procedures, audit reports, and certifications and map them with regulatory requirements and best practices. You can maintain this manually or use a compliance automation system to track the status of relevant documentation. 

5. Use the right tools to ensure adherence & continuous compliance.

Include periodic internal audits and reporting as the key milestones of your compliance system. Audits shed light on gaps and the work that needs to be done. When coupled with exhaustive reporting, these audits become useful for making wise decisions and formulating future policy plans.

Integrating cloud compliance solutions can help you ensure that you aren’t overwhelmed trying to achieve compliance manually. Sprinto is a complete GRC & Compliance platform that lends granular, entity-level control over security policies and procedures while enabling automation at multiple levels. You can now implement and manage controls from a single dashboard and seamlessly adhere to compliances such as SOC 2, ISO 27001, PCI-DSS, GDPR, and HIPAA certifications.

Adopt a continuous monitoring and adaptation culture to stay ahead of compliance challenges. Regularly assess your compliance posture, monitor performance, and adapt measures to evolving regulatory landscapes and technological advancements.

6. Treat violations seriously (but solve them together)

Now that you know how to onboard your cloud vendor the best possible way and minimize your risk of non compliance, you also have to plan for contingencies. The best partnerships are those which have a clear idea of mutual accountability and a plan for when things go wrong. Clearly detail out what is the steps that will be taken at each end to resolve in case of a compliance or security violation and ensure that you stick to the plan if things do. 

Challenges in Cloud Compliance

1. Complexity of cloud environment 

One of the major challenges in cloud compliance is that the environment is ever changing. Just as your company grows and chooses the flexibility of the cloud, that flexibility comes at a cost. The controls that work while you’re processing 1000s of transactions may fail when you hit the millions, especially if you do not reevaluate them periodically. Being cognizant of downstream impact of changes in the cloud environment is a challenge which is very often missed in the cloud security compliance conversation. 

How to overcome the challenge:

• Implement formal change management processes to minimize risks at the time of process or infrastructure changes 
• Conduct regular risk assessments to stay on top of the vulnerabilities
• Leverage cloud compliance solutions to get a real-time view of compliance status

2. Information asymmetry on vendor controls

This is a typical challenge when you get into any vendor agreement, when it comes to your internal controls, you can understand how they are changing daily. However, unless your periodically monitor vendor compliance, you don’t have any idea of the actions they are taking. Are they rolling out patches on time, are they ensuring role based access, do they have continuous compliance monitoring, all these are good questions to ask your vendor. Also, having a tool in place to assess their compliance status helps you understand risks that may enter due to third party failures. 

How to overcome the challenge:

• Conduct thorough due diligence and assess vendor security practices
• Specify vendor obligations in contracts to set clear expectations
• Request for regular compliance reports from vendors

3. Inherent problems of the shared responsibility model

Particular challenges of the shared responsibility model inherently give vendors less control over their data infrastructure than on-premise. From information asymmetry on the cloud controls to being unable to influence the security decision-making of the vendor team directly, it can lead to scenarios where teams are not aligned. Hence it is essential to evaluate vendors in terms of transparency of the model as well as drafting an ironclad SLA agreement that ensures that there is minimal chance of violations. However, this is a challenge you must consider before getting into a vendor agreement. 

How to overcome the challenge:

• Draft Service level agreements (SLAs) outlining responsibilities for both the parties
• Educate the workforce about the shared responsibility model to raise awareness and accountability
• Set up regular check-ins with vendors for transparent communication

4. Shadow IT

Shadow IT refers to the use of cloud services and resources without the knowledge or approval of the IT department or leadership. It can lead to security risks, compliance violations, and data loss or breaches. For example, an employee might use an unsanctioned file-sharing platform for sensitive information, and since the IT department is unaware of it, there is less visibility and control. This lack of oversight can result in data breaches and increased exposure to attacks.

How to overcome the challenge:

• Implement a Cloud Access Security Broker (CASB) to monitor usage of cloud resources
• Draft and distribute an acceptable usage policy
• Educare employees on shadow IT as well as security best practices
• Implement multi-factor authentication systems

5. Data sovereignty challenges

Data sovereignty indicates that cloud service providers must abide by the laws of the country where data is collected, stored, or processed. This presents a challenge when organizations rely on global cloud service providers (CSPs) that store data across multiple locations. Ensuring compliance with local laws can be difficult if the organization is unaware of where the data is stored.

How to overcome the challenge:

• Choose providers with data localization options which means storing data in the same location where it is collected
• Implement practices such as encryption and data masking to minimize unauthorized access during transfers

Cloud Compliance Frameworks: What’s Right For Your Business? 

There are multiple cloud regulations and standards and they can be tough to navigate if you aren’t familiar with them. This is an overview of the top frameworks you should know when you are looking to understand cloud compliance standards. 

1. SOC 2: Adhere to TSC

SOC 2 (Service Organization Control Type 2) helps businesses ensure that the way you process client data is secure across your and third party processing. It ensures that customer data is managed adhering to the Trust Services Criteria (TSC) of Security, Availability, Confidentiality, Processing Integrity, and Privacy.

• Security ensures that cloud-based systems and data are protected by implementing measures such as access controls and firewalls.
• Availability guarantees that the cloud services are up and running, implementing  measures for disaster recovery and failover systems
• Confidentiality protects sensitive information stored or transmitted in the cloud using measures such as encryption
• Processing integrity ensures that the processes and data are accurate and uses techniques such as input validation and testing
• Privacy makes certain that cloud service providers meet data privacy requirements

2. ISO 27001: Reinforce Infosec

ISO 27001 certification is designed to help organizations continuously improve their ISMS (Information Security Management Systems). It serves as a blueprint to implement a top-notch security process that guarantees the preservation of the safety, confidentiality, and availability of the data you store.

Here’s how ISO 27001 ensures cloud compliance:

• Risk-based approach: ISO 27001 requires organizations to identify risks and create risk treatment plans accordingly, including for the cloud environment.
• Third-party management: The framework advocates managing supplier and third-party risks, which also includes evaluating cloud service providers.
• Cloud-specific controls: It also specifies controls such as access controls, encryption, logging, monitoring, and backups to ensure information security in the cloud
• Cloud incident response: ISO 27001 requires the creation of an incident management plan with procedures for detecting and responding to incidents affecting the cloud
• Other requirements: ISO 27001 also requires security policies, documentation, monitoring and auditing of cloud services, and adherence to other mandatory clauses to ensure cloud compliance

3. PCI-DSS: Secure Card Holder Information

The Payment Card Industry Data Security Standard is a security standard that is vital for any company that deals with financial transactions such as credit and debit card transactions. It mitigates these transactions’ risks and keeps the cardholder customer data secure. Find out how Sprinto can help you achieve PCI Compliance certification.

The framework emphasizes that cloud compliance is a shared responsibility between the CSP and the customer. It advocates access controls, network segmentation, vulnerability scans and pen tests to ensure cardholder data is secure across cloud environments.

4. GDPR: Uphold Data Privacy

General Data Protection Regulation, ensures that the personal information and data of EU citizens are protected and that the transfer of data is regulated. If you are doing business with any of the EU countries, you must ensure that you are GDPR compliant even if you are not based within the EU.

The organization using cloud services is the data controller and the cloud service provider is the data processor under GDPR. These two parties must have Data Processing Agreements (DPAs) in place. Other key provisions in this cloud compliance standard include:

• Data minimization and storage limitation: Organizations using cloud services must ensure that only the minimum necessary data is collected and that retention policies are in place.
• Privacy by design: GDPR requires cloud services to be configured in a way that it protects data privacy by default
• Data subject rights: It grants individuals certain rights over their data and cloud service providers must support the data controllers in case any information is required
• Data transfer restrictions: GDPR also has strict data transfer rules including data stored by cloud services.

5. HIPAA: Safeguard Health Information

The Health Insurance Portability and Accountability Act (HIPAA) reigns supreme in healthcare. Its stringent requirements ensure the confidentiality and integrity of protected health information (PHI) in the cloud. Healthcare providers and cloud vendors forge a shield against cyber threats with HIPAA compliance.

Cloud service providers that store, process, or transmit sensitive patient information on behalf of healthcare organizations are business associates under HIPAA. They must have a Business Associate Agreement (BAA) with covered entities and follow the HIPAA security rule. This means they must have administrative, physical, and technical safeguards in place to ensure the security and confidentiality of PHI.

6. NIST: Engage With US Gov

NIST (National Institute of Standards and Technology) cybersecurity certification is a framework that is a prerequisite for engaging with government and federal agencies and doing business with them.  This certification ensures that the recommendations of FISMA (Federal Information Security Modernization Act) are followed in letter and spirit.

FedRAMP (Federal Risk and Authorization Management program) also utilizes NIST guidelines to evaluate the security of cloud services used by federal agencies.
NIST also has other resources such as the NIST SP 800-53, titled Security and Privacy controls for Information Systems and Organizations that provides a catalog of controls to protect assets, including those in the cloud.

Automate cloud compliance with Sprinto

Now that you have an overview of what cloud security entails, how do you go about automating it so that you don’t have to worry about it impacting your data security? That’s where Compliance & GRC automation platforms like Sprinto come in. Whether you are a new startup, growing market leader or #1 in the category, Sprinto can help you achieve the compliance you need for the next stage of growth without the busy work. You can now implement and manage controls from a single dashboard and seamlessly adhere to compliances such as SOC 2, ISO27001, PCI-DSS, GDPR, and HIPAA. 

Sprinto has been consecutively named as a Leader in Security Compliance and a leader in the Cloud Security and Cloud Compliance tools categories by G2, rated #1 in Ease of Implementation, User Adoption, Usability, and ROI. 

Let’s show you how it’s done. Watch the video to understand the magic of our Common Control Framework. 

FAQs

What is an example of cloud compliance?

Compliances depend on the use case of your business. If you are in Fintech or looking to deal with card data/financial transactions, you should consider PCI DSS cloud compliance standard. If you are a hospital or health tech startup dealing with health PII then you should consider HIPAA compliance, to learn more about cloud compliances, refer the compliance frameworks section in this blog.

Who is responsible for compliance in the cloud?

The shared responsibility model stipulates that businesses and cloud service providers are responsible for ensuring cloud networks’ safety and security. While cloud providers maintain basic compliance standards, you need to double-check and ensure that the appropriate compliances are in place regarding your business data.  This can be the responsibility of the CISO (Chief Information Security Officer), Compliance Manager, CTO, Engineer, or IT admin based on the scale of your organization. 

What is the difference between cloud governance and compliance?

Cloud governance is a framework that guides the management and usage of cloud resources. It helps establish policies, secure cloud data and minimize risks related to cloud operations.

Cloud compliance on the other hand, focuses on ensuring adherence to internal policies and external laws and regulations related to cloud services.

How to validate a cloud service provider’s compliance?

To validate a cloud service provider’s compliance:

• Review relevant third-party audit reports such as for SOC 2 and ISO 27001
  Examine policies on access controls, encryption, data privacy etc.
• Evaluate service level agreements for clearly laid out compliance responsibilities
• Investigate historical uptime and performance metrics
• Request customer references

What are some cloud compliance best practices?

Here are some cloud compliance best practices:

• Implementing robust data governance policies
• Assigning permissions based on roles
• Conducting regular audits and assessments
• Ensuring backup and recovery procedures
• Having a well-documented incident response plan
• Using cloud compliance tools