Risk Assessment vs Cloud Governance
As more businesses embrace cloud computing, the importance of cloud governance and risk assessment cannot be overstated. While these two terms are related, they are not synonymous. In this post, we'll explore their differences, similarities and why they’re essential for any organization that uses the cloud.
Understanding Risk Assessment
In a nutshell, a risk assessment is a systematic process that helps identify the potential risks that could occur within a specific environment. These risks could be, for example, a system malfunction, natural disasters, or human error. Risk assessments typically include identifying critical business data and information assets, evaluating the likelihood and impact of a risk occurring, and developing a plan to mitigate the risk or manage its consequences.
According to a 2019 survey conducted by State of Risk Report, 81% of organizations have some form of a risk management program in place. However, only 15% said they have an integrated approach to risk management across their organization.
What is Cloud Governance?
Cloud governance refers to a set of policies, procedures, and guidelines that dictate how an organization manages its cloud computing resources. Cloud governance ensures that cloud resources and services are used in a way that aligns with the organization's goals, standards, and compliance requirements.
This includes everything from data privacy policies, data classification protocols, data retention, cloud data encryption measures, and user identity management.
How are they different?
While both risk assessment and cloud governance have a common goal of managing risk, they differ in their scope and focus. Risk assessment analyzes risks and their potential impact on the entire organization, while cloud governance is more focused on the cloud infrastructure and resources.
Risk assessment is an initial process that evaluates the overall system landscape, identifies risk exposure, and recommends measures to avoid, mitigate, or manage risks. On the other hand, cloud governance policies dictate how resources and data are used, who has access to them and how they can be shared.
Why are they both important?
The rapid adoption of cloud technology has significantly increased the risk of cyber threats, which could lead to sensitive data leakage or system downtime. As such, risk assessment and cloud governance become increasingly important for organizations to ensure the safety and protection of sensitive data.
By implementing cloud governance policies, including access controls, data classification, and security protocols, organizations can lower their exposure to risk. Risk assessments, on the other hand, can help identify gaps in the system, allowing companies to address them before they become a problem.
In summary, it's essential to take a structured approach by implementing cloud governance policies and conducting regular risk assessments. By combining these two strategies, organizations can reduce their exposure to risks and ensure the safety and protection of sensitive data and assets.