Cloud Outsourcing
Definition
The use of cloud computing services by regulated financial institutions, which is treated as a form of outsourcing subject to specific regulatory requirements. Cloud outsourcing rules address data security, data location, access and audit rights, concentration risk, and exit strategies from cloud service providers.
Regulatory Context
Regulators have issued specific guidance on cloud outsourcing, including the EBA Guidelines and individual national regulator expectations. DORA introduces an oversight framework for critical ICT third-party providers, including major cloud providers designated by the European Supervisory Authorities.