In recent years, the financial sector has become increasingly regulated due to the rise in financial crimes and data breaches. As a result, businesses in this industry are facing strict regulatory compliance standards and hefty fines if they don’t comply. So what tools can your business leverage to stay afloat?
AWS, or Amazon Web Services, is a go-to solution for businesses looking to comply with regulatory standards in the financial sector. In this article, we’ll dive a little deeper into the world of AWS and how to properly utilize it.
Why Is It So Hard to Stay Compliant in the Financial Sector?
Financial institutions are subject to many regulations, compliance standards, and laws that they must follow to operate legally and protect their customers’ data. The main ones include:
- Sarbanes-Oxley Act (SOX)
- Gramm-Leach-Bliley Act (GLBA)
- Payment Card Industry Data Security Standard (PCI DSS)
- Federal Information Security Management Act (FISMA)
- Basel III
With so many compliance standards, it can be challenging for businesses to stay compliant. Plus, non-compliance can result in severe consequences. Just in 2022, Morgan Stanley was fined $35 million for severe security lapses that leaked unencrypted data. This not only resulted in a significant fine but also severe reputational damage and loss of trust from customers.
What is the AWS Compliance Framework?
AWS is a cloud computing platform that provides a wide range of tools and services for storing, processing, and analyzing data. It also has a comprehensive compliance framework to help businesses in the financial sector comply with various regulations. The framework incorporates certifications from various compliance programs, such as HIPAA, SOC, and FedRAMP.
Additionally, AWS follows a shared responsibility model, where businesses retain responsibility for their data and applications, while AWS ensures the security of the cloud infrastructure.
Your Guide To Using AWS For Compliance Standards
So how can you utilize all of the tools that AWS offers? Here’s a step-by-step process:
1. Use Security and Encryption Measures
AWS offers various security and encryption options that can help you comply with regulations such as SOX, GLBA, and PCI DSS.
2. Configure Access Controls and Identity Management
Managing user identities and access is crucial for maintaining compliance standards. AWS offers tools such as Identity and Access Management (IAM) and Security Token Service (STS) to help you configure, manage, and monitor user permissions.
3. Monitor Your Audit Trail
One of the biggest challenges for businesses in the financial sector is monitoring and auditing their systems. AWS offers tools like CloudTrail, which provides a detailed record of all API actions taken on your account to help you meet PCI DSS requirements.
4. Employ Secure Cloud Storage and Data Handling
AWS offers various data storage options that comply with regulations such as FISMA, including Amazon S3 and AWS GovCloud. These services provide secure storage for your sensitive data, ensuring they are encrypted at rest and in transit.
5. Leverage Compliance Automation Tools
With the help of tools like AWS Config and Amazon Inspector, you can automate compliance checks and continuously monitor your environment for potential risks.
6. Create a Disaster Recovery and Business Continuity Plan
In the event of a disaster or outage, having a proper disaster recovery plan is crucial for compliance. AWS offers services like AWS Backup and Amazon S3 Cross-Region Replication to ensure your data is always backed up and available.
RedNight Consulting: Your Valuable AWS Partner
With the right partner, following compliance standards becomes manageable. RedNight Consulting specializes in helping businesses in the financial sector effectively leverage AWS services. With our help, your business can utilize AWS to maintain compliance with regulatory standards. Contact us today to learn more.