Itc596 It Risk Management: Risk Assessment Answers

Answer:

Introduction 

Cloud computing provides the capability to transform business operations, opportunities and demands by offering agility, elasticity and speed for organizational resources (Oracle, 2015). For company leaders, cloud services provide business lines to offer computing applications for rolling out main business procedures. One of the most popular benefit of cloud computing is that it facilitates IT resources utilization as integrated  services by an organization, which drives efficiency and costs reductions  combined computing assets and processes as well as quick  functionality updates. The following evaluation report expounds on the risks involved with migrating key business applications together with their associated data on the cloud space for Aztec Limited, a financial service provider.

Cloud computing technology 

According to (IBM, 2017), cloud computing paradigm is the provision of on-demand computing services including storage, data centers, computer networks  to applications that paid for as its utilized through the Internet. Cloud computing therefore allows enterprises and users access to computing capabilities that allow them process and store and process data, either through a third party provider or in a private cloud which makes access to data processes more reliable and efficient (Mell & Grance, 2011). Additionally, cloud computing depend on resource sharing to achieve economy of scale and consistency (Haghighat, Zonouz, & Abdel-Mottaleb, 2015).

Essential Features 

• Quick elasticity - IT asset resources can  rapidly scale out as needed for businesses
• On-demand self-service – end-users are able to access,  evaluate and control required computing resources without administrative assistance  
• Expansive access to the network  –services are distributed over varied devices and average networks
• Resource pooling – IT resources are accessed and  shared across various multiple applications
• Measured service – IT resources usage can be  tracked for each end-user application for effective billing

Cloud technology service approaches 

Cloud computing services can be implemented as the following services (Oracle, 2015), and are shown in the figure 1 below.

1. Software as a service (SaaS) – involves softwareapplications delivered as a service to users through the web.
2. Infrastructure as a service (IaaS) – involves hardware based services such asservers, networking hardware and storage devices via the Internet.

• Platform as a service (PaaS) – a platform that includes facilities to develop and deploy tools, databases, and middleware supplied as a service via the Internet for application developers who use it to develop, deploy and maintain SaaS systems.

Figure 1: Cloud Services Models.  Source: (GetSix, 2017)

Cloud technology deployment approaches 

The main deployment models for cloud computing services include the following:  

• Private cloud deployment - Substructure is operated exclusively within an individual organization and supplied over the Internet. Private clouds can be controlled and  managed within the business or outsourced to external service providers

» Pros: It’s probable to accomplish several flexibility and cost benefits of public cloud computing without worry about sensitive data leaking into the public network

» Cons: Preliminary cost savings are fewer compared to deploying a  public cloud, however  long-term cost savings normally will surpass public cost savings cloud installation

• Public cloud deployment – involves access to collective and services and infrastructure in which organizations have the capability to access and build applications as well as store data.

» Pros: Public cloud possibilities provide elasticity, costs reduction, operational flexibility and speed of implemented and maintained shared facilities.

» Cons: Business leaders can  bring resistance towards storing data off the company premises and may therefore not trust that data security can be maintained away from IT’s undeviating management in shared servers and storage facilities

• Hybrid cloud deployment – involves an organization implementation both public and private clouds for services access in order to gain from both kind of setups  

» Pros: Hybrid cloud implementation provides data  flexibility, reduces business costs as well as delivering data privacy and protection with the private cloud option

» Cons: complicated to set up and difficult to manage and maintain. Its integration requires expertise skills and knowledge

• Community cloud deployment – this type involves a single cloud space   environment being utilized by more than one interrelated establishments who want to get cloud services from the same applications and infrastructure

» Pros: For sectors that are closely related including government agencies,  health care, defense agencies, community cloud implementation offers   secure data transmission channel for sensitive data

» Cons: harmonization is necessary for all member organizations in a  community cloud setting such as cloud services provider and centralized storage locations, failure to which will not work effectively among the members of the cloud community 

Strengths of adopting cloud computing technology

Cloud computing advancement has significant potential to improve security and robustness in a business (ENISA, 2012).

1. Mobility: cloud providers and cloud services users can both replicate cloud content and access services in many localities respectively. Such a setting enhances data independence and redundancy preventing failure and providing a level of back up service
2. Edge networks provision: cloud space offers processing, storage and delivery close to the network control which increases overall quality and reliability hence reducing  network challenges

• Enhanced incident responsiveness and resolve: cloud offers aptness in terms of responses to actions, requests and instances, it is possible to provide faster responses to clients as well as detect service problems including intrusion and tapping which assists in creating  more efficient  and effective instance responses

1. Risk management: many cloud services providers can provide expert skills to deal with cloud services security risks and vulnerabilities hence securing the services for organizations. They also work with compliance regulations that ensure data privacy and confidentiality for organizations.

Financial services sector review 

Globally, the financial services sector plays the role of fund transfer from one entity to another (Kolakowski, 2017). It includes enterprises involved in undertakings that include money lending, insurance, investing and security trading with customers being individuals, organizations and government agencies.

Australian financial service sector 

Australia’s services sector has seen been experiencing progressive growth and the financial services sector has not been left behind (Coyne, 2017).  The financial sector growth has been estimated to be expanding at 3.5 percent per year, outperforming other sectors that have a growth rate of 3.3 percent per year (Narayan, 2015). Part of what has driven this growth is ICT adoption including cloud computing.

Cloud computing adoption in the financial services sector 

The financial services industry is already embracing various cloud services and deployment models for ICT needs. This means that many business operations within financial sector are largely being migrated to the cloud (Oracle, 2015). Some areas in the financial service sector that are being moved to the cloud are shown in Figure 1 below.  

Figure 2: Cloud services adoption areas in the finacial industry. Source: (Oracle, 2015)

Many financial organizations have adopted cloud computing technology and have reported good results. From fast searches to  quick secure data retrievals in encrypted environments, Cloud migration is helping the finance industry Improve Cost Effectiveness  by streamlining  their operations and lessening  communications expenses (QOSConsulting, 2016). Figure 3 below shows cloud technology options in the finance service sector

Figure 3: Cloud computing service area in the finance industry. Source: (Oracle, 2015)

Cloud technology compliance procedures in financial services and cyber security guidelines

In order to provide quality services, cloud service providers must ensure information security, privacy, resiliency, and disaster recovery procedures all associated with the data as well as creditworthiness of the providers themselves. These elements are essential towards developing successful cloud strategy for organizations. As such, financial services sectors need to comply within several procedures to ensure data integrity both for themselves and their customers.  Service agreement compliance procedures allows clients to comprehend the strong control processes for cloud services  and helps them to conserve data protection and security (Scrofani, 2017).

Cloud computing deployment for Aztec Limited 

Cloud technology can greatly improve business productivity for Aztec Limited. To ensure sustainability of business functions in the cloud Aztec can make use of tools that provide security and enables cloud services legal or governmental compliance standards. By adopting cloud services, Aztec will benefit from the following according to (Nomani, 2016).

Benefits of cloud adoption for Aztec 

1. Cloud computing deployment will enable Aztec to boost their financial agility through capability to enter newer regions (Coles, 2017).
2. Aztec will be able to  add efficiency in all its business operations

• Aztec will be able to reduce  operational costs associated with  new  software and hardware and storage  acquisition by ensuring the essential infrastructure resources are available as they can now be accessed on the Internet

1. Cloud computing will provide regular services and systems  monitoring
2. Cloud services will also help in business continuity by providing  growth and sustainability of Aztec
3. Improved mobility as business processes flexibility as they can now be accessed from any place at any time

• Data and information centralization allowing quick retrieval and updates
• Improved collaboration with prospective and existing clients and stakeholders

Benefits of cloud adoption to customers

Cloud computing for Aztec Limited will not only benefit the business but will also benefit its clients. According to (Khurana, 2017), some of the benefits that client customers will obtain will include the following:

1. Data privacy
2. Clients will overcome geographical limitations and can access Aztec services from anywhere at any time

• Decrease in travel costs

1. 24/7 services access
2. Active customer services engagement with Aztec

Cloud adoption Threats and vulnerabilities 

Deploying cloud technology at Aztec comes with several risks (Shagin, 2012). Some of the risks that may come with cloud computing adoption at Aztec include the following:

1. Network dependency – access cloud services means that Aztec requires a stable computer network at all times
2. Complexity in creating hybrid systems – Aztec limited is a financial organization and may hold sensitive data which is not easy to store off the company premises

• Data centralization – keeping all the company information is risky as it can get lost or be maliciously accessed

1. Data insecurity -  cloud computing services on the internet can easily be hacked into by hackers and other intruders
2. Loss of governance – Aztec will lose control of their informational storage facilities as they will be controlled by an external party  (ENISA, 2012)
3. Bring Your Own Device (BYOD) risks

• Service inaccessibility  due to failure in the network or simply lack of services from cloud providers
• Vendor lock-in which leads to dependence on  services provided by  a particular provider  which could limit the business only to that provider(CloudStandardsCustomerCouncil, 2015)

Risk Management 

A risk is a future uncertainty regarding a business procedure (TheEconomicTimes, 2017). Thus a risk is the likelihood of an unsafe event that could negatively affect the achievement of organizational objectives.  It is essential to manage risks in a business to ensure business productivity (Djemame, Armstrong, Guitart, & Macias, 2014). Risk management is measured in terms of the impacts an event is likely to cause (Misra, 2008). For business continuity, it would be crucial to manage all the threats and susceptibilities that can cause negative impacts at Aztec through the use of several procedures

• Mobile device management

Mobile device management refers to measures employed by a company to manage and control the usage or mobile devices in the company network (Ferrill, 2017). The digital shift together with ubiquitous technology including mobile computing devices such as notebook computers, smart phones, tablet computers, kindles and more have accelerated the rate at which employees carry these and use mobile devices which has led to the concept of bring your own device(BYOD) . The work place has not been spared as many staff members carry and use personal mobile devices at work. Some companies allow BYOD at work while some do not. It is important to manage mobile device management as they can be a way through which an attacker can access company network.

• Data backup procedures

Back up involves copying data in secondary physical or virtual spaces for retrieval in case of a disaster (Kraanz, 2016). Performing data backup helps organization to manage risks and any other uncertainties. Organizations that implement cloud services should therefore employ data backup procedures for use in the event of disasters and data security breaches

• Backbone network

Backbone networks refer to many internet connections providing efficient data exchanges (Dharmaweera, Rajendran, & Sekercioglu, 2011). For network efficiency and proper access and usage of cloud services, a business has to have a robust computer network. To ensure such effectiveness, it is vital to install backbone networks to support cloud applications, services and infrastructure operations over the Internet

• Data authentication and authorization

Company that adopt cloud services should ensure that only the authorized and authenticated systems and individuals can access their data and information for security and privacy maintenance.

Data security risks for cloud services 

Cloud computing offers amazing benefits for business organizations.  However, there exists multiple challenges for both individual users and enterprises.  One of the most challenging issue with cloud computing is data security, which goes hand in hand with factors including privacy, trust, legal and  compliance matters (Xiao & Xiao, 2013). Data security is a main issue with regards to deploying cloud technology for business. Many data breaches including the recent Wanna cry attack prove that data security is very important for cloud services adoption success. However in the modern cloud computing environment, data insecurity is still a challenge as data is distributed all over the globe.  Data security is a main concern with cloud technology as shown in figure 4 below.

Figure 4: Factors that inhibit cloud computing adoption. Source: (Raoa & Selvamanib, 2015)

Data security procedures for cloud services 

Data security for cloud services involves a wide range of policies, procedures, controls and technologies used to protect applications, services and storage facilities associated with cloud computing technology (Raoa & Selvamanib, 2015). Data security involves technologies including network security, computer security and information security.  

Cloud security controls

Several controls can be used to reduce data insecurity in cloud systems according to (Ronald & Dean, 2010)

• Deterrent controls -  intended to lessen cloud services attack by letting attackers know of harsh consequences that will face them if they go on and intrude cloud systems
• Preventive controls – involve controls  to strengthen cloud  system services against attack instances by decreasing and eliminating vulnerabilities such as authentication  and encryption
• Detective controls-  anticipated to discover and to appropriately respond to any attack attempts
• Corrective controls – used to lessen data security breach effects by reducing the damage and restoring the cloud systems in order to rebuild compromised systems

Organizations can adopt several practices to provide data privacy and security (Ivery, 2016) that include the following

• Avoid storing sensitive data on the cloud space’
• Manage and control the security options and usage of mobile devices that connect I the company network
• Reading and ensuring a proper understanding of service level agreements from cloud service providers
• Ensure strong passwords and implement 2 factor authentication 2FA practices
• Make use of strong encryption standards
• Implement virtual private networks(VPN) for data transfer
• Use encrypted service providers

Conclusion

As stated in the introductory part, technology advances continue to transform business organizations through the digital shift. As such, a business that does not digitize its processes will fail to achieve a competitive advantage and may eventually fail. This is from the dawn of the fact that for business to continue their operations successfully, they need to adopt ICT technologies. The financial industry is not left behind in the effort to embrace ICT for business productivity. It is therefore beneficial for Aztec Limited to adopt cloud services to enhance all its operations and achieve continuity.

References 

CloudStandardsCustomerCouncil. (2015). Security for Cloud Computing. Retrieved from https://www.cloud-council.org: https://www.cloud-council.org/deliverables/CSCC-Security-for-Cloud-Computing-10-Steps-to-Ensure-Success.pdf

Coles, C. (2017, September). Advantages of Cloud Computing and How Your Business Can Benefit From Them. Retrieved from Sky High Networks: https://www.skyhighnetworks.com/cloud-security-blog/11-advantages-of-cloud-computing-and-how-your-business-can-benefit-from-them/

Coyne, A. (2017, July 20). Cloud computing adoption in Australia is booming. Retrieved from IT News : https://www.itnews.com.au/news/cloud-computing-adoption-in-australia-is-booming-468833

Dharmaweera, N., Rajendran, R., & Sekercioglu, A. (2011). Toward a Power-Efficient Backbone Network: The State of Research. Retrieved from https://titania.ctie.monash.edu.au/: https://titania.ctie.monash.edu.au/papers/power-efficient-bbone.pdf

Djemame, K., Armstrong, D., Guitart, J., & Macias, M. (2014). A Risk Assessment Framework for Cloud Computing. IEEE White Rose Research , 2-3.

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