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Cloud security compliance: a regulatory guide for enterprises

date: 21 January 2025
reading time: 9 min

With cloud environment intrusions increasing by 75% from 2022 to 2023, the need for cloud security compliance has never been more evident. This guide will help you understand all the details to ensure your business is well-protected.

Key takeaways on cloud security compliance:

  • Definition of cloud security compliance: it involves adhering to a set of standards, policies, and regulations designed to ensure the security and privacy of cloud-based systems and data.
  • Shared responsibility model: in cloud environments, while cloud service providers manage the security of the infrastructure, organisations are responsible for securing their applications, data, and user access.
  • Key compliance frameworks: several frameworks guide cloud security compliance, including ISO 27001 for information security management, SOC 2 focusing on customer data protection, and the NIST Cybersecurity Framework for improving security and resilience of critical infrastructure.
  • Best practices for cloud security compliance: organisations should conduct regular risk assessments, implement robust access controls, ensure data encryption, and stay updated with evolving regulations.


What is cloud security compliance?

Cloud security compliance refers to the set of standards, policies, and regulations that organisations must follow to ensure the security and privacy of their cloud-based systems and data.

As businesses increasingly rely on cloud services for storage, cloud computing, and data management, meeting these compliance standards becomes crucial to safeguarding sensitive information against breaches, unauthorised access, and cyberattacks.

Ensuring cloud security compliance is not only about following the rules; it is also about building trust with customers, partners, and stakeholders, mitigating business risks, and protecting the organisation’s reputation and operational integrity.

Cloud security compliance - definition
Cloud security compliance – definition


What are the key differences between on-premise and cloud compliance requirements?

The key differences between on-premise and cloud compliance primarily arise from where data is stored, managed, and processed.

In on-premise setups, businesses have full control over their cloud infrastructure, including hardware, software, and network layers. This means that companies are directly responsible for implementing and maintaining comprehensive security measures, such as physical security, disaster recovery protocols, and system updates.

On the other hand, cloud compliance transfers much of the responsibility for physical infrastructure security to the cloud service providers (CSP). Cloud environments are hosted externally, and while cloud providers ensure the security of the underlying infrastructure, customers are still responsible for securing their applications, data, and user access.

The shared responsibility model dictates that organisations configure cloud services securely and manage access controls.

Furthermore, with cloud service often operating across multiple jurisdictions, organisations must also address global data privacy laws, which can be more complex than the regulatory requirements typically found in on-premise systems.


Common security compliance frameworks and policies for achieving cloud security

Cloud compliance in terms of security is guided by several well-established cybersecurity frameworks, each offering a set of best practices, security controls, and regulatory standards for safeguarding sensitive data.

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Some of the most widely adopted frameworks include:


ISO 27001

This international standard provides a comprehensive approach to managing sensitive company information. It emphasises risk management, security controls, and continuous improvement, helping organisations maintain global security standards.


SOC 2

SOC 2, developed by the American Institute of Certified Public Accountants (AICPA), focuses on criteria for managing customer data based on five trust service principles: security, availability, processing integrity, confidentiality, and privacy. It is especially relevant for service organisations that store or process customer data.


NIST Cybersecurity Framework

Developed by the National Institute of Standards and Technology (NIST), this framework offers guidelines for improving the security and resilience of critical infrastructure.

It includes standards for identifying, protecting, detecting, responding to, and recovering from cybersecurity threats.


CSA STAR (Cloud Security Alliance)

The CSA STAR certification programme evaluates the security practices of cloud service providers. It ensures that cloud platforms meet industry best practices and offers organisations a way to verify their CSP’s security posture.


HIPAA

In the United States, HIPAA sets standards for protecting healthcare data. Cloud providers that handle protected health information (PHI) must comply with HIPAA’s stringent security and privacy requirements.


PCI DSS

The Payment Card Industry Data Security Standard (PCI DSS) provides a set of rules for securing payment card data. Organisations involved in processing, storing, or transmitting card payment information must comply with these standards to protect financial data.


FedRAMP

FedRAMP provides a standardised approach to security for cloud products used by federal agencies in the United States. It sets stringent security controls for CSPs seeking to provide cloud services to the government.


COBIT

COBIT (Control Objectives for Information and Related Technologies) is an IT governance framework that helps organisations align their cloud security efforts with business objectives. It provides tools for managing security, risk, and compliance across an enterprise’s IT systems.


NIS2 Directive

The NIS2 Directive is an updated version of the European Union’s Network and Information Systems Directive (NIS). It enhances cybersecurity requirements for essential and important entities across various sectors, including energy, healthcare, finance, and digital infrastructure.

NIS2 introduces stricter reporting obligations, increased accountability for management, and broader enforcement powers for regulatory authorities, aiming to strengthen cybersecurity resilience across the EU.

Read more:


DORA (Digital Operational Resilience Act)

DORA is an EU regulation designed to ensure that financial institutions, including banks, insurers, and fintech companies, can withstand and recover from operational disruptions.

It establishes uniform requirements for ICT risk management, incident reporting, and testing, specifically addressing the risks associated with third-party ICT service providers, such as cloud platforms.


How to ensure security compliance in the cloud?

Achieving security compliance in the cloud requires a combination of technical controls, policy enforcement, and continuous monitoring.

Here are some steps to follow:

How to ensure security compliance in the cloud?
How to ensure security compliance in the cloud?
  • Assess risks – before migrating data, assess which information is suitable for the cloud. Sensitive data may require better controls or a hybrid cloud approach to mitigate risks.
  • Select the right cloud provider – choose a provider that aligns with security frameworks like ISO 27001, SOC 2, or NIST. Perform due diligence on their security policies and certifications.
  • Secure cloud configuration – configure cloud environments with encryption, IAM, data loss prevention, multi-factor authentication, and vulnerability assessments to safeguard data.
  • Automate continuous monitoring – use automated tools like CSPM to detect misconfigurations and security gaps, ensuring ongoing compliance with industry standards. Additionally, integrate SIEM (Security Information and Event Management) systems to collect and analyse security data across your environment, and leverage a SOC (Security Operations Center) to proactively monitor, detect, and respond to threats in real time.
  • Backup and encrypt data – implement robust backup strategies to ensure data availability and resilience against data loss or breaches. Encrypt sensitive data both in transit and at rest to safeguard it from unauthorised access. Consider managing your own encryption keys for enhanced control over access. Use information protection systems like Microsoft Purview to classify, label, and protect sensitive data, enabling better governance and ensuring compliance with data protection regulations.
  • Schedule ongoing audits and employee training – regular audits, penetration testing, and staff training on security best practices are essential for maintaining long-term compliance.


How often should cloud security compliance audits be performed?

The frequency of cloud security compliance audits depends on several factors, including the specific regulatory requirements, the sensitivity of the data, and the organisation’s overall risk profile.

For industries such as healthcare or finance, annual audits or more frequent assessments may be necessary to ensure compliance requirements like HIPAA or PCI DSS are met.

Beyond scheduled audits, organisations should also conduct audits after significant changes to the cloud environment, such as deploying new services, updating security policies, or responding to a security incident.

Continuous monitoring tools and automated compliance checks can support traditional audit cycles by identifying vulnerabilities and non-compliance issues in real time.


What are the penalties for non-compliance in cloud security?

The penalties for non-compliance in cloud security can be severe and vary depending on the regulations violated and the jurisdiction. For example, under the General Data Protection Regulation (GDPR), companies can face fines of up to €20 million or 4% of global annual revenue for failing to protect personal data.

Violations of the Payment Card Industry Data Security Standard (PCI DSS) can result in significant fines and transaction fees, especially if payment systems are not secured properly.

In addition to financial penalties, organisations may face reputational damage, loss of customer trust, and legal liabilities. Non-compliance could also lead to the loss of business contracts, especially in regulated industries like healthcare and finance, and may prevent an organisation from operating in certain markets or sectors.

Severe and ongoing non-compliance could even result in service suspensions or litigation.

Best practices for maintaining cloud compliance
Best practices for maintaining cloud compliance


What tools and solutions are available for automating cloud security compliance?

Automating cloud security compliance is crucial for reducing manual effort, minimising human error, and ensuring continuous adherence to regulatory standards. Several tools help automate various aspects of cloud security, from configuration management to real-time monitoring.

Cloud Security Posture Management (CSPM) tools, like Wiz, Prisma Cloud, and Check Point CloudGuard are essential for identifying misconfigurations, vulnerabilities, and compliance violations across cloud environments. These tools continuously monitor cloud platforms, automatically detect security risks, and enforce best practices to ensure alignment with frameworks like ISO 27001, SOC 2, and HIPAA.

Cloud Access Security Brokers (CASBs), including Microsoft Defender for Cloud Apps (formerly Microsoft Cloud App Security), provide enhanced visibility into cloud usage, allowing organisations to enforce security policies, track compliance in real time, and secure sensitive data.

Tools like Microsoft Purview go a step further by enabling advanced data governance, compliance tracking, and the classification and protection of sensitive information.

For automating auditing and monitoring, solutions like Vanta streamline the process of achieving compliance certifications such as SOC 2 by providing continuous monitoring and reporting, while Splunk offers robust logging and analytics capabilities for incident response and compliance oversight.

In the realm of developer-centric tools, Snyk.io focuses on securing code and dependencies by detecting vulnerabilities in real time, helping teams address security risks during development. Similarly, Aikido Security provides proactive vulnerability discovery and risk mitigation for cloud-native applications.

Finally, infrastructure-as-code tools like Terraform and Chef InSpec ensure that security configurations are consistent and policy-compliant from the deployment phase onward, aligning infrastructure with organisational standards.


Take control of your cloud security compliance with Future Processing

Cloud security compliance doesn’t have to be overwhelming. At Future Processing, we help businesses simplify compliance with tailored solutions and expert guidance.

Whether you need automating processes, streamlining audits, or improving security, we’re here to help. Contact us today to achieve your cloud security goals.

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