Data Compliance in the Cloud: What You Need to Know

By Srikanth
6 Min Read
Data Compliance in the Cloud: What You Need to Know 1

With the rise in cloud offerings and data-driven solutions, enterprises are accumulating massive amounts of data. The accumulation is causing regulatory and public awareness to adopt and promote secure data usage against illegal or unethical benefits. Countries and governments are mandating the implications of compliance regulations to ensure enterprises are transparent about the data collection and usage standards.

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The presence of sensitive data elevates the criticality of compliance implications when data storage, transformation, and transmission are involved via the cloud. Affordable cloud storage and compute resources at the disposal of button clicks make data compliance critical, as anyone can capture the data and use it for destructive or criminal purposes. Cloud providers continually strive to design and develop solutions that adhere to data compliance and regulations. Understanding key aspects of protecting the data is essential. The developer is responsible for reviewing and implementing data compliance standards.

Data Compliance Standards

The availability of information and news is the cause of the digital responsibility movement. Global and regional regulatory policies have been derived and evolved, specifying the kinds of data that must be protected, acceptable procedures by the law, and the consequences for businesses that fail to adhere to the rules.

The top standards that are generally a part of cloud data security solutions encompass the global, health, and financial regulations —  Global Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), and the Payment Card Industry Data Security Standard (PCI DSS).

Regulatory Purposes:

  • GDPR implies a set of regulations about people’s right to know what personal data organizations capture and store, how businesses should manage accumulated data, and guidelines for reporting security breaches transparently.
  • HIPAA lays down the requirements for US organizations handling personal health and medical data to guarantee the security and privacy of these records.
  • PCI DSS is an essential component of any compliance process for organizations that handle consumer financial information and establishes guidelines for how those businesses should handle and safeguard cardholder data.

The Privacy Act, ISO 27001, and many other industry-specific compliance standards exist that firms should consider to ensure compliance standards are adhered to for sensitive data.

Significance of Standards Adherence

Considering and applying standard compliance practices in cloud environments boosts the security posture and builds overall service integrity, showcasing the company’s commitment to data privacy and ethical business practices. 

Cloud compliance policies open up possibilities for enhanced data management and risk mitigation. Above all, cloud data compliance is displayed as a badge of trust in the market for customer trust and loyalty.

How to Attain It Through Frameworks 

Well-documented guidelines and cloud solution best practices exist as a data compliance framework and help organizations adhere to regulatory requirements. These solutions are general and efficient at the same time.

Data Abstractions

Encryption, masking, and anonymization abstract the underlying data from unintended exposures by making it unreadable and safeguarding the data integrity of confidential information in transit and at rest.

Control Administering

IAM policies, data classification, and tagging help classify and label data based on sensitivity and importance, with the advent of applying robust access control to administer the usage and access restrictions.

Monitoring

Logging and alerting are vital for recording data access patterns and version history while reporting unintended behaviors as they occur in real-time for instant mitigation and remediation to minimize the exposure of the attack surface. 

Management

Data residency, location rules, retention, and deletion regulations are essential. The strategies enable sound and fail-proof data compliance management. This strategy protects confidential data while fostering accountability, openness, and adherence to data compliance rules.

Consequences of Not Complying

Data compliance and regulations are not to be mistaken for general requirements. The standards are part of the enterprise data handling and sharing strategy. Failing to apply and comply with global and regional data compliance standards can put enterprises at risk of reputation and monetary loss.

Inadequate addressing of compliance requirements can lead to data breaches, data exposure, and breaches. Additionally, regulatory and legal consequences are imposed if enterprises are seen practicing unethical or illegal activities with personal and sensitive data while avoiding data compliance standards.

Conclusion

The standards and usage of the data in the cloud ecosystem have raised numerous red flags recently concerning the safety and security of data. Countries and users place their trust in enterprises and believe they will use their data (personal) for ethical purposes, and betterment of overall service, and nothing more.

Global policies and regulatory acts exist to guide and instruct enterprises to apply cloud data compliance solutions. These solutions range from general to most sophisticated ones, and third-party tools exist to provide consolidated features as a single offering. Organizations at any cost must prioritize data compliance to protect sensitive information.

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