A growing number of organizations are using cloud computing as a viable alternative for their IT resource needs. Cloud computing allows organizations to increase their ability to meet computing resource demands while avoiding significant investments in IT infrastructure, personnel, and software. While forecasts are for continued increases in demand for cloud computing, the benefits also bring a host of new risk considerations.
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued a thought paper, Enterprise Risk Management for Cloud Computing, to help organizations assess and mitigate risks arising from cloud computing. Visit the COSO Web site (www.coso.org). Read the thought paper to answer the following questions:
a. What is cloud computing?
b. What are private clouds, community clouds, public clouds, and hybrid clouds?
c. The paper identifies examples of risks associated with cloud computing. Describe each of the following risks:
(1) Disruptive force
(2) Lack of transparency
(3) Vendor lockin and lack of application portability
(4) Highvalue cyberattack targets