Adoption of Cloud Computing Could be Hampered by Failure to Understand Risks
Organisations’ decisions about adopting cloud computing, with its broad promise of financial benefits, need to be made with a full view of the risks involved, Marsh said when it launched the Cloud Risk Framework. The framework is the result of a year-long collaboration by the Cloud Risk Forum, a Marsh-led group of international legal, insurance, risk, and technology experts.
The methodology details a five-stage process that enables organisations to evaluate the risks and the potential financial impact of any change in risk profile involved in a shift to ‘the cloud’. Fully adaptable to individual organisations, the Cloud Risk Framework creates a starting point for the debate concerning the adoption of cloud technology.
Fredrik Motzfeldt, leader of Marsh’s communications, media and technology practice in Europe, the Middle East and Africa (EMEA), said: “Moving IT services to the cloud presents a conundrum to many businesses. Although it promises greater financial efficiency and productivity, the cloud brings an increased dependence upon technology infrastructures housed outside an organisation’s immediate control.
“The Cloud Risk Framework provides for the first time a simplified output regarding risk costs to help businesses navigate the complex issues surrounding cloud use decisions, including security challenges and regulation. With this objective analysis, they can then avoid some of the more subjective and emotional factors that might otherwise affect their judgment.”