Taiwan’s Banking Association has taken a significant step in guiding the financial industry through the complexities of cloud adoption by releasing the Financial Institutions Cloud Services Practice Manual. This comprehensive guide, often likened to a cloud operations manual, serves as a valuable resource for financial entities, whether they are embarking on their initial cloud journey or looking to enhance their existing cloud management strategies.
Background and Purpose
The manual comes on the heels of the Financial Supervisory Commission’s (FSC) revised cloud computing guidelines released in August of the previous year. Subsequently, the Banking Association formulated自律規範 (self-discipline norms) for the financial industry’s use of cloud services. By the end of July this year, the association officially published the Outsourced Operations of Financial Institutions Using Cloud Services Self-Discipline Norms, which outline the control measures for the industry’s use of cloud services.
The FSC also requested that the Banking Association develop the practice manual to provide detailed execution methods for cloud adoption that were not extensively covered in the self-discipline norms. This manual aims to offer more direction for financial institutions during their cloud migration process.
Content and Structure
The practice manual is structured into nine chapters, covering a wide array of strategies and methodologies that financial institutions can adopt during their cloud transformation. It includes:
- Cloud Services Strategy Development and Governance
- Cloud Risk Assessment Methods
- Cloud Services Management Framework
- Cloud Talent Training
- Cloud Services Security Control
- Cloud Services Operation Control
- Cloud Services Audit
- Cloud Services Resilience Management
- Other Explanations
The manual is designed to be a practical guide for financial institutions, providing insights into planning strategies, risk assessment, security controls, and operational management. It also offers guidance on contract negotiation with cloud service providers.
Key Focus Areas
Two chapters stand out as particularly crucial: Cloud Services Security Control and Cloud Services Operation Control. These sections were given significant attention by the writing team due to their importance in the financial industry’s cloud adoption process. As financial institutions share the responsibility for security and operational maintenance with cloud service providers, the manual emphasizes the need to strengthen cloud security controls.
The chapter on Cloud Services Resilience Management is also significant, as it provides detailed instructions on the various stages of exit plans, addressing regulatory requirements for cloud exit mechanisms.
Implications and Benefits
For financial institutions that are new to cloud computing, the manual serves as a roadmap to help them navigate the planning process and understand the necessary control mechanisms. This knowledge is essential for effective communication with cloud service providers. For those already on the cloud, the manual offers ways to reinforce existing management practices, such as adopting different control measures based on different risk scenarios.
Liao Po-lun, the Deputy General Manager of KPMG’s Technology and Transformation Services Department, who participated in writing the manual, suggests that financial institutions can use this guide to enhance their cloud adoption strategies and management approaches.
Conclusion
The release of the Financial Institutions Cloud Services Practice Manual by Taiwan’s Banking Association marks a pivotal moment in the financial industry’s journey toward cloud adoption. By providing a detailed and practical guide, the association has equipped financial institutions with the tools they need to navigate the challenges and opportunities of cloud computing. As the industry continues to evolve, this manual will undoubtedly serve as a valuable resource for years to come.
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