I think organizations will increasingly leverage cloud computing and cloud services to meet their regulatory requirements. And there are good reasons why.
There are several benefits of managing regulatory needs in a cloud environment:
Easier Data Mastering
Financial institutions have to routinely check their customer lists for known terrorists and “Politically Exposed Persons” (PEP). Most companies have disparate customer lists spanning their billing, CRM and other systems. By moving these PEP screening datasets and even their own customer processes into the cloud it is far easier to scan these data sources for suspected infringements.
Aside from watchlist data, there are hundreds of other data sources required with regulatory reporting, by hosting them in the cloud it makes it far easier to keep one master source instead of duplicating them around the organization where they can quickly become out of date. Just one breach through allowing your data to get stale can have serious implications.
Potential for Outsourcing
Regulatory directives are only going to increase in future years. By placing your infrastructure in the cloud and leveraging cloud services you can more easily transition regulatory operations to specialist providers who are well versed in the nuances and intricacies of modern regulatory laws.
By placing your data and services in the cloud you naturally begin the process of consolidation. Many regulatory functions overlap considerably and as accessibility to information is made easier there will be benefits of having a leaner and more responsive regulatory team. Creating a center of excellence would also be easier for this reason. Security is always cited as a concern here with services in the cloud but in many ways cloud computing improves security because access controls can be monitored more easily as all access comes through one gateway, whereas users have multiple access points with a more traditional application arrangement.
As regulatory demands increase I think we’ll start to see more organizations moving towards the cloud to help reduce the costs, complexity and technical challenges of implementation. What do you think? Welcome your views.