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The Cloud Risk Framework

Organizations’ 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 at the recent launch of its the Cloud Risk Framework, claimed to be the first methodology of its kind.

The Cloud Risk Framework details a five-stage process that enables organizations 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 organizations, the Cloud Risk 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.

Fredrik Motzfeldt, Leader of Marsh’s Communications, Media and Technology Practice in Europe, the Middle East and Africa (EMEA), said: “Moving information technology (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 organization’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.”

The Cloud Risk Framework’s five-stage process includes:

  • Identifying key categories of risk for IT services clients;
  • Categorising potential types of loss and costs typically linked to IT service failure;
  • Quantifying areas of financial impact;
  • Allocating the cost of a risk event between the customer and cloud provider;
  • Determining the likelihood of a risk event occurring.

www.marsh.com

•Date: 16th May 2012 • World •Type: Article • Topic: Cloud computing

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