Risk Management

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RISK MANAGEMENT

Cloud Computing in the Financial Sector

Table of Contents

Introduction3

Discussion4

Legal Certainty4

Data security5

Contract security5

Security experience5

Strategic and Operational Objectives6

Cost Effectiveness13

Conclusion14

Cloud Computing in the Financial Sector

Introduction

The study is related to the cloud computing; the use of Cloud Computing for financial sector technology is increasing. Financial organizations can utilize the cloud to improve customer relationship management, while also using virtual desktops to improve the efficiency of their computing processes. They can gain confidence and knowledge to support their cloud computing initiatives from the experiences of companies that already have taken the plunge. In the Bank of America, it is important to have the cloud computing as it provides protection to the bank as well as the financial sector of the United States.

Some finance firms' are showing reluctance as cloud computing is being driven by suppliers and not market demand. Financial services companies are reluctant to hand over control of their financial sector technology applications to third parties. If you move to cloud computing and it breaks, your business cannot operate whereas if systems are managed internally, you can still run. Cloud use cannot go unchecked. Given how easily data can be moved in the cloud, it's imperative to know where it is at all times. Most of these efforts provide useful insights to help companies take one of the critical steps in any cloud computing initiative: setting a clear strategy and road map with achievable, meaningful goals. Merrill Lynch has created an energy saving risk management platform, and Wall Street's new hosted Electronic Settlement Network offers pay as you go FX trade processing.



Discussion

In Bank of America, the issue of security is crucial in relation to cloud computing and much controversy. For the financial industry, it is about more than just IT security. According to past researchers, the financial industry as a pioneer in cloud computing. For banks and financial service store for decades under the name of outsourcing certain activities and services from outside partners. Still afraid to now, many financial institutions to rely on the new cloud computing technology. It's actually less about the underlying technology.

Legal Certainty

Whether cloud computing, outsourcing and software as a service in the Bank of America; financial industry is all about the consistent adherence to the full range of regulatory requirements. Regardless of how banks their IT services relate, they have the demands placed on them in compliance, governance and security. Therefore, the Bank of America must find the right cloud partner rely on proven industry experience.

Often here the already well known outsourcing partner institutions to develop benefits of cloud computing. For he has usually already have the necessary industry specific know how to operate a cloud compliant. Of crucial importance for the success of a cloud project at the Bank of America is a growing trust between the partners.

In addition, provide independent certifications such as ISO 27001 or from manufacturers such as “SAP Cloud Service Partners” have important implications for the quality of a bid. For these reasons come for highly sensitive and highly regulated industries like ...
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