Cloud Computing: Challenge For Financial Firms?
March 27, 2013
Grazed from Forbes. Author: Emma Byrne.
Cloud computing is not as disruptive as many organizations feared. Using a cloud provider has come as naturally to most organizations as using webmail. But for the financial sector, international laws make life—shall we say—challenging. Here’s why.
Behind the scenes, there are heavyweight struggles taking place that center around the “sovereignty” of data. If data are stored across international borders, how can your customers be sure that their sensitive personal information is safe? More importantly—at least from the lawyers’ perspective—who can be sued if it isn’t safe? For organizations in the financial sector, the picture can be murky…
Safe Harbor And BCR Found Wanting?
The last disruption of financial service delivery on this scale took place in the 1990s, when the Internet became a tool for international business. In order to deal with the European Union’s stringent data protection laws, many U.S. businesses entered into Safe Harbor Agreements. These gave the legal protection necessary when processing personal data belonging to EU citizens: A prerequisite when providing Web-based services to the European market…
Read more from the source @ http://www.forbes.com/sites/netapp/2013/03/27/cloud-computing-challenge/