Future of Sourcing - FinTech Industry http://futureofsourcing.com/tags/fintech-industry en Cloud Compliance and 4 Ways to Improve It http://futureofsourcing.com/cloud-compliance-and-4-ways-to-improve-it <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Cloud%20Compliance%20and%204%20Ways%20to%20Improve%20it.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Cloud%20Compliance%20and%204%20Ways%20to%20Improve%20it.png" title="Cloud Compliance and 4 Ways to Improve It" class="colorbox" rel="gallery-node-2064-i4t2P7hprKA"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Cloud%20Compliance%20and%204%20Ways%20to%20Improve%20it.png?itok=MsJS6kZp" width="624" height="325" alt="Cloud Compliance and 4 Ways to Improve It" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Cloud Compliance and 4 Ways to Improve It</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/6-cybersecurity-tips-for-international-business-travelers">6 Cybersecurity Tips for International Business Travelers</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Cloud compliance accounts for a company adhering to previously established cloud usage regulations and standards that are dictated by both federal laws and industry guidelines. Let&rsquo;s say your business operates within the FinTech industry. This means that you must adhere to the Fintech Law (comprising 100+ laws and multiple regulators, tribunals, etc.) in terms of how you store and handle customer data. The same goes for the healthcare industry for storing and handling patient data, and so on.</p> <p>Businesses that do not comply with all the necessary laws, regulations and standards are exposed to great risks and face adverse consequences. Typically, these consequences come in the form of fines, fees, or complicated and reputation-damaging <a href="https://zegal.com/blog/post/create-business-communication-plan-avoid-legal-issues/" target="_blank">legal issues</a> that could set you back significantly, in terms of both company progress and resources.</p> <p><span style="font-size: 13.008px;">This is why cloud compliance is one of the most critical aspects of running an organization. It involves taking appropriate measures so your business is compliant with these standards and laws, making sure you are always on the safe side.</span></p> <p>Improving your cloud compliance strategy is actually not a complex task. Here are some of the cloud compliance best practice steps you can take.</p> <h2>Understand the SLAs (Service Level Agreements)</h2> <p>Although service level agreements have been the standard across numerous industries for quite a while now, there are still companies that do not take them seriously and don&rsquo;t prioritize them. For example, cloud service providers often send potential customers standard, boilerplate SLAs that are then merely skimmed and signed, without the customer understanding the terms in their entirety.</p> <p>These insufficient levels of understanding of how cloud providers store and handle a company&rsquo;s data can be quite risky, especially in the long run. This is why it is crucial that a business works with a cloud provider so both sides have a clear overview of the way data and sensitive information would be managed.</p> <p>The SLA should provide the following information and guidelines:</p> <ul> <li>How the data is accessed and by whom</li> <li>How the environment is segmented</li> <li>Geographic location</li> </ul> <h2>Know Data Management Best Practices that Best Work for You</h2> <p>Having a solid security and data privacy strategy that will help you tackle cloud compliance is impossible if you don&rsquo;t have a proper understanding of data and how it should be managed. This is why a business must have a firm grasp of the following:</p> <ul> <li>Data classification (identifying all the types of data you manage)</li> <li>The ways this data is gathered and collected</li> <li>How and where this data is stored</li> <li>The time frame from storing certain pieces of data</li> <li>If and how your communication channels are affecting your data security</li> </ul> <p>One data management aspect that companies overlook most often in terms of data privacy and security is handling the information that goes through numerous communication channels, mainly email platforms. Email platforms are the most widely used channels among companies and their customers, but the measures for preventing risky and sub-optimal approaches to managing email-based data are rarely taken seriously.</p> <p>In order to prevent losing pertinent data, or to minimize potential legal issues due to missing email-based information, it is highly recommended that businesses utilize <a href="https://jatheon.com/products/on-premise-email-archiving-solutions/">email archiving solutions</a> that can automate these processes for them.</p> <p>It is also suggested that a company has a strong <a href="https://jatheon.com/blog/email-retention-policy-best-practices/" target="_blank">email retention policy</a> in place. This can help optimize storage and data retention costs, all while automating regulatory compliance tasks with professional expertise.</p> <p>Once an organization outsources these time-consuming technicalities and chores, it enables them to invest more time and energy into productive workflows that actually drive and bring revenue.</p> <h2>Have a Firm Grasp of the Cloud Model Your Company is Using</h2> <p>In order to make sure that your cloud compliance strategy is as effective as possible, your team needs to have a strong understanding of how the cloud model your company is implementing actually works. If you don&rsquo;t understand all the components of the public, private or hybrid cloud model that underpins your business infrastructure, it is almost impossible to tackle cloud compliance in terms of data protection.</p> <p>Discerning security or compliance issues for different cloud models can vary significantly. The tricky part is that the integration of cloud services into your company&rsquo;s practices and processes doesn&rsquo;t necessarily mean that your business now automatically adheres to all compliance obligations. This is why companies need to have sufficient knowledge of how different cloud models are configured in terms of compliance responsibilities and best practices.</p> <h2>Take Care of Employee Data Access and Authentication</h2> <p>One of the main tasks when it comes to remaining fully compliant is to properly regulate data access levels among your employees. The common best practice advice for this task is the implementation of multifactor authentication so your most sensitive data stays protected all the time. <a href="https://searchsecurity.techtarget.com/definition/multifactor-authentication-MFA" target="_blank">Multifactor authentication</a> accounts for a practice of requiring multiple forms of identification before a user is able to access and handle certain pieces of information.</p> <p>For example, this may involve internal systems within your business that require employees to input both a password and specialized access code that is typically generated when the correct password is being entered. The code stops being valid after a certain period of time. These codes are sent to employees&rsquo; emails so only the right user can access the data in question.</p> <p>There are also other forms of multifactor authentication like physical identification badges. An employee could be required to show an identification badge prior to entering a storage room that stores hard drives. The user or employee may be required to insert the correct password to access sensitive information located on the drive.</p> <p>Certain companies that deal with extremely sensitive data or company secrets tackle cloud access management and centralized platform configuration so only certain individuals are granted access to sensitive information.</p> <h2>Closing Statement</h2> <p>Data classification, proper security layers, understanding how cloud models work and what their SLAs imply are just some of the basic ways to improve your cloud compliance strategy. This issue comes with great responsibility and involves having a firm grasp of the most common threats that a business can face in terms of data loss.</p> <p>It is strongly suggested that you consistently and regularly educate both yourself and your employees about existing as well as emerging security trends that permeate the industry and niche your business operates in.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/service-level-agreements-slas" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Service Level Agreements (SLAs)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/cloud-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cloud Technology</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/fintech-industry" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">FinTech Industry</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/risk-management-and-compliance-grc" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Management and Compliance (GRC)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Cloud Compliance and 4 Ways to Improve It - Future of Sourcing" addthis:url="http://futureofsourcing.com/cloud-compliance-and-4-ways-to-improve-it"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 30 Sep 2021 02:00:00 +0000 Damian Alderson 2064 at http://futureofsourcing.com http://futureofsourcing.com/cloud-compliance-and-4-ways-to-improve-it#comments Robo-Advice: Time to Re-Boot Delivery? http://futureofsourcing.com/robo-advice-time-to-re-boot-delivery <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Robo-Advice-Time%20to%20Reboot%20Delivery.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Robo-Advice-Time%20to%20Reboot%20Delivery.jpg" title="Robo-Advice: Time to Re-Boot Delivery?" class="colorbox" rel="gallery-node-1197-i4t2P7hprKA"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Robo-Advice-Time%20to%20Reboot%20Delivery.jpg?itok=fEaSaymx" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Robo-advice, also known as &lsquo;automated advice&rsquo; refers to the provision of financial advice with as little human interaction as possible. A strand of artificial intelligence, robo-advice offers guidance on the basis of mathematical rules and algorithms rather than human intelligence. Whilst algorithmic trading may have been around for many years, the concept of a &lsquo;robo-adviser&rsquo; has only recently become a reality.&nbsp;</p> <p>This type of advice has the potential to affect all financial services firms as it seeks to provide traditional investment and financial services, both regulated (such as advice) and unregulated (such as guidance), cheaper and quicker than traditional firms.&nbsp;</p> <p>In a bid to get ahead of this new wave of technology, the Financial Conduct Authority (FCA) introduced Project Innovate in October 2014 to provide practical support to businesses wanting to introduce <a href="http://outsourcemag.com/blockchain-the-answer-to-the-financial-service-industrys-prayers" target="_blank">innovative financial products</a>. Firms were invited to join the Sandbox where they could test new products without all the usual regulatory requirements. The Advice Unit was subsequently launched in June 2016 and provides regulated feedback to those developing robo-advice models. It also now accepts businesses wanting to provide guidance on regulation rather than solely those seeking authorisation. Since announcing that half of the companies in the first wave of its Advice Unit have either launched a low-cost advice service or will be doing so imminently, the FCA launched its Financial Advice Market Review (FAMR) to investigate the opportunities and the challenges that automated advice can bring.&nbsp;</p> <p>Robo-advice offerings to date have mainly focused on the less complex end of the financial advice spectrum. However, the FCA&#39;s purported enthusiasm for these advisers has stemmed largely from concerns about an &#39;advice gap,&#39; in which consumers are unable to get/afford advice and guidance. The FCA, much like most of the FinTech industry, sees a raft of positivity with the use of robo-advice to combat these issues but also, as always, some pitfalls. Still relatively new, this breed of advice is far from the stage where it could provide more sophisticated feedback in relation to complex circumstances and some external factors seem to be slowing down its fruition.&nbsp;</p> <p>Many of the opportunities presented by automated advice ironically also cause the challenges. There is a long list of opportunities that include: a low-cost alternative to traditional services; an increased accessibility for the consumer (on the basis that the advice/ guidance is based on algorithms that can be accessed 24/7); and increased access to affordable advice/ guidance. Many also argue that it removes human biases and can provide consistent advice/ guidance. These opportunities also relate to a long list of challenges including whether AI will inevitably lead to job losses and eliminate human interaction, or how one can draw the line between advice, which is regulated, and guidance, which is not regulated. This advice brings with it an increased risk if the wrong information is inserted by accident &ndash; something a human adviser would be able to spot and correct.&nbsp;</p> <p>Since the FCA finalised its considerations of these challenges as part of its Financial Advice Market Review (FAMR) and published its guidance on &lsquo;streamlined advice and related consolidated guidance,&rsquo; there have been significant noteworthy strides made in relation to further regulation of the industry. The boundary between advice and guidance has been tightened, the Financial Services Compensation Scheme funding review has been launched, employers have been encouraged to facilitate advice for their employees, a dedicated unit for automated services has been set up, and alongside the Treasury and industry experts, the FCA has been working through the latest long list of reforms facing the financial services sector.&nbsp;</p> <p>However, despite these many steps forward and improvements to technology, in particular <a href="http://outsourcemag.com/artificial-intelligence-whats-now-and-next-in-iot-driven-supply-chain-innovation">artificial intelligence</a>, robo-advice appears to only be automating a small part of a much wider industry and at a relatively restricted pace. Like so much in the financial and regulatory technology sectors, it is the collaboration between the technology and the human interaction that makes any AI product a real success and the question of whether to adapt today or fall behind the market trends always appears. If considering the use of artificial intelligence, then the following steps should be taken:&nbsp;</p> <ol> <li>Determine whether the outcome of the robo-advice is actual advice (a regulated activity and cannot be provided without regulatory permission);</li> <li>Ensure that during the fact-finding process, any questions used to extract information from the customer are done in laymen&rsquo;s terms to avoid incorrect answers or misinterpretation;</li> <li>Consider using artificial intelligence for a limited purpose. For example, not all customers (especially in these early stages) will be comfortable receiving advice in this way. Simply because the end advice is provided by an advisor, it does not mean artificial intelligence cannot be used effectively.&nbsp;</li> </ol> <p>Introducing any new technology to a business requires specialist expertise. As previously stated, not only is this new way of issuing advice regulated,&nbsp;but it also requires the right human brain power to make it effective.&nbsp;This is a reason why we are seeing&mdash;and will undoubtedly continue to see&mdash;an increased number of firms outsourcing this function to qualified specialists.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/financial-conduct-authority-fca" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Financial Conduct Authority (FCA)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/robotic-process-automation-rpa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Robotic Process Automation (RPA)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/fintech-industry" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">FinTech Industry</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/automation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Automation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Robo-Advice: Time to Re-Boot Delivery? - Future of Sourcing" addthis:url="http://futureofsourcing.com/robo-advice-time-to-re-boot-delivery"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 25 Jun 2018 17:24:48 +0000 Joe Woodbury 1197 at http://futureofsourcing.com http://futureofsourcing.com/robo-advice-time-to-re-boot-delivery#comments