Cloud computing places the burden of security on the provider, but doesn't relieve you of the responsibility for protecting personal and sensitive data. Therefore it becomes essential to conduct a thorough review of the provider's security to ensure good governance. This means inspecting their information security policy and procedures against proven standards, such as ISO 27001.
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You must also ask for proof of their staff vetting and management processes, as well as their technical infrastructure. They must be able to assure you of their data security controls, such as encryption of data, both in transit and at rest. The provider should be able to demonstrate that it conducts regular, independent audits and penetration tests, and be willing to share the results with you. Your contract should also give you the right to conduct audits and tests of your own.
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