Compliance Frameworks for Financial Services in Cloud Questions and Answers for Viva

Answer-1: A compliance framework is a structured set of guidelines that outlines how an organization complies with regulations, standards, and policies.

Answer-2: They ensure secure, legal, and ethical handling of sensitive financial data and help avoid penalties.

Answer-3: Common frameworks include PCI DSS, SOX, GDPR, GLBA, and FFIEC.

Answer-4: Payment Card Industry Data Security Standard.

Answer-5: It governs how payment card data is processed, stored, and transmitted to prevent data breaches and fraud.

Answer-6: A U.S. law that requires financial institutions to explain their information-sharing practices and protect sensitive data.

Answer-7: SOX mandates financial reporting accuracy and requires IT controls to ensure data integrity.

Answer-8: Federal Financial Institutions Examination Council ? it sets IT security guidelines for U.S. financial institutions.

Answer-9: Protecting personal data and giving individuals control over their personal information.

Answer-10: Cloud services introduce third-party risks, requiring enhanced due diligence and shared responsibility.

Answer-11: A model outlining which security and compliance responsibilities are handled by the cloud provider and which by the customer.

Answer-12: A framework for managing customer data based on five principles: security, availability, processing integrity, confidentiality, and privacy.

Answer-13: SOC 1 focuses on financial reporting controls, while SOC 2 focuses on operational and data controls.

Answer-14: A global standard for information security management systems, often adopted in cloud-based financial operations.

Answer-15: It provides a structured approach to managing sensitive data and ensuring information security in the cloud.

Answer-16: A process of assessing and monitoring risks associated with using third-party cloud services.

Answer-17: Encryption protects data in transit and at rest, which is often a requirement of compliance frameworks.

Answer-18: Logs that record user and system activity, essential for demonstrating compliance and investigating incidents.

Answer-19: MFA strengthens access control, reducing the risk of unauthorized access to sensitive systems.

Answer-20: Using tools and processes to ensure systems remain compliant at all times, not just during audits.

Answer-21: Some regulations require data to remain within specific geographic locations for privacy and security.

Answer-22: A compliance and control framework specifically designed for cloud computing.

Answer-23: It provides third-party assurance of a cloud provider?s security and compliance posture.

Answer-24: Federal Risk and Authorization Management Program ? ensures cloud services used by federal agencies meet security requirements.

Answer-25: Yes, it can serve as a benchmark for evaluating cloud providers? security capabilities.

Answer-26: They continuously scan cloud environments to ensure alignment with regulatory standards.

Answer-27: AWS Config, Azure Policy, Prisma Cloud, and CloudCheckr.

Answer-28: Being prepared for regulatory audits with accessible logs, reports, and documentation.

Answer-29: A global regulatory framework on bank capital adequacy, stress testing, and market liquidity risk.

Answer-30: By conducting audits, reviews, and requesting certifications like SOC 2 and ISO 27001.

Answer-31: Digital Operational Resilience Act ? an EU regulation focusing on ICT risk in financial entities.

Answer-32: It requires firms to manage outsourcing risks and ensure service continuity.

Answer-33: Service Level Agreements outline performance and compliance expectations from cloud vendors.

Answer-34: Helps determine the level of protection required for different types of financial data.

Answer-35: Implementing compliance rules through code to automate and enforce security policies in cloud environments.

Answer-36: They ensure data availability and disaster recovery, which are regulatory requirements.

Answer-37: Controlled environments where financial firms can test innovative technologies under regulatory oversight.

Answer-38: IAM enforces least privilege and tracks user access, which is key for compliance.

Answer-39: A review process to identify where current practices fall short of regulatory requirements.

Answer-40: Proper documentation proves adherence to regulatory standards during audits.

Answer-41: It introduces challenges in visibility and monitoring but can be compliant with proper controls.

Answer-42: The concept that data is subject to the laws of the country in which it is located.

Answer-43: They ensure the organization understands and aligns with applicable regulations.

Answer-44: It must be vetted to avoid licensing issues and security vulnerabilities.

Answer-45: An independent review that certifies a vendor?s adherence to specific compliance frameworks.

Answer-46: Data visibility, shared responsibility confusion, rapid tech changes, and multi-jurisdictional laws.

Answer-47: It can lead to fines, reputational damage, and legal actions.

Answer-48: Training ensures employees understand compliance responsibilities and reduce human error.

Answer-49: A documented strategy to detect, respond, and recover from security incidents in a compliant way.

Answer-50: Demonstrating regulatory compliance reassures clients that their data is secure and well-handled.