Compliance and cloud collide in finance

There are several new ways to store data, with companies opting for new and powerful technologies to meet their evolving needs. According to Information Management, these new tactics have made the transition to the financial industry, where they have raised numerous questions regarding governance and data compliance laws.

As payment information is extremely sensitive and its misuse could lead to identity theft, there are strict laws surrounding data quality and privacy in the banking industry. According to the news provider, there is some confusion regarding the way these rules interact with alternative methods of data storage such as the cloud, as the rules are vaguely defined.

The source stated that the rules surrounding the cloud deal with it as classic outsourcing, and have not been specifically tailored to its unique nature. The best practice, in this case, is for bank personnel to become keenly aware of the facets of a cloud offering, gaining approval on a number of tenets in an initial contract rather than afterward.

Banking is not the only industry dogged by difficult governance requirements. According to CMSWire, there is an advanced need for data protection and management in the legal field, with a similar web of laws surrounding the use of documents.