Security and the Cloud
Jul
28

Security and the Cloud

Security and the Cloud

This week on the blog, I discuss how moving to the cloud can actually enhance your hedge fund’s security posture.

When it comes to the cloud, many hedge funds remain concerned about maintaining appropriate security measures. While the cloud does come with security risks, namely surrounding data privacy issues such as data location and segregation and privileged access control, in certain instances it can actually help improve your firm’s security posture when managed appropriately by a trusted technology partner.

cloud-securityMost hedge funds are now choosing a hybrid cloud model because it combines all the benefits of the public and private cloud into one platform, including security features, customization, control, scalability, and cost efficiency. The cloud can enable hedge funds to mitigate security threats by automating security patching. In addition to automated patching, using a cloud service can also ensure that all applications, such as email, CRM systems, or trading platforms stay up to date because they are run on secure systems within the service provider’s private infrastructure.

The majority of the security features that accompany the cloud ensure maximum reliability and regulatory compliance, which can make it a more secure choice than traditional on premise infrastructure. Upgraded security features include SAS70/SSAE16 and ISO 27001 certifications; managed backup, intrusion detection, and encryption capabilities; and disaster recovery (DR) replicated across multiple data centers and built into the infrastructure. Clouds that are built with security in mind using these enhanced features reduce the chance of many types of attacks, such as phishing attacks, by allowing administrators to quickly identify and mitigate network abnormalities.

Another security benefit to using the cloud is the ability to control user privileges. Many cloud platforms allow administrators to monitor and review employee actions on the network, as well as block or make updates to control usage based on employee status. This helps mitigate the risks associated with data privacy, location, and segregation.