Today’s Podcast, we explains cloud compliance, emphasizing its increasing importance as businesses move to the cloud and store data there. It outlines key aspects of cloud compliance, including adhering to regulatory standards, laws, customer requirements, and governance.

The Podcast then details three common compliance frameworks: SOC 2, which focuses on managing customer data based on trust service criteria; HIPAA, crucial for healthcare businesses handling protected health information; and PCI DSS, an industry standard for protecting credit card data.

Finally, we introduces below the JPStream’s approach to cloud compliance, highlighting its services in assessment, security, monitoring, risk management, and governance to help businesses meet these requirements.

Listen our podcast about Navigating Cloud Compliance: SOC 2, HIPAA, and PCI DSS

Cloud Compliance: Key Regulations and Strategies

What is cloud compliance and why is it increasingly important for businesses?

Cloud compliance, in its simplest form, is the necessity for businesses to ensure that their cloud-based systems adhere to the standards their customers require. A more comprehensive definition includes complying with regulatory standards, local, national, and international laws, customer-set standards, and internal governance guidelines. Its importance has grown exponentially due to the increasing migration of corporate data and business applications to the cloud. In 2022, 50% of corporate data was cloud-based, and 70% of business applications were SaaS, making cloud compliance a cornerstone of business scalability and essential for managing the complex regulatory environment.

How can a business begin to establish a cloud compliance strategy?

Businesses new to cloud compliance should start by asking themselves five key questions: (1) Identify applicable regulations such as SOC 2, HIPAA, and PCI DSS. (2) Determine accountability based on the cloud service model (IaaS, SaaS) and deployment type (public, private, hybrid). (3) Define and implement granular access controls for various user groups (on-premise, off-premise, third-party vendors, etc.). (4) Ensure data is encrypted both in transit and at rest, even if cloud providers offer encryption services. (5) Establish vigorous and regular security audits to identify vulnerabilities and maintain alignment with evolving cloud compliance rules.

What is SOC 2 and who does it typically apply to in the cloud environment?

SOC 2 (Systems and Organization Controls 2) is a broad, non-industry-specific compliance framework that defines criteria for managing customer data based on five Trust Service Criteria (TSC): Security, Privacy, Availability, Processing Integrity, and Confidentiality. Unlike some regulations, all five criteria are relevant for SOC 2 compliance. It generally applies to any entity (vendors, third-party providers, SaaS providers, PaaS providers, etc.) that accesses, transfers, or stores client information in the cloud. The rise of cloud computing and outsourcing led to SOC 2 as a way to provide assurance regarding the confidentiality and privacy of data processed by these systems.

What is HIPAA and what are its key requirements for organizations in the healthcare sector?

HIPAA (Health Insurance Portability and Accountability Act) is a crucial regulation for any healthcare business. The core of HIPAA compliance revolves around protecting protected health information (PHI). Organizations in possession of PHI must implement physical, digital, and process measures to safeguard this data. Key requirements include: implementing strong authentication and access control, conducting periodic security risk assessments, and ensuring the encryption and security of stored electronic PHI (e-PHI). HIPAA applies to anyone involved in treatment, payment, or operations in healthcare, as well as business associates and subcontractors who handle PHI.

What is PCI DSS and which types of organizations need to comply with it?

PCI DSS (Payment Card Industry Data Security Standard) is a set of policies and procedures designed to protect credit, debit, and cash card transactions and prevent the misuse of personal cardholder data (CHD). Unlike HIPAA, PCI DSS is an industry standard managed by the Payment Card Industry Security Standards Council. It applies to all entities that store, process, and/or transmit cardholder data. This includes merchants who accept or process payment cards, regardless of the transaction volume. The standard outlines six main control objectives with specific requirements under each.

What are the fundamental differences between SOC 2, HIPAA, and PCI DSS?

SOC 2 is a broad, service-organization focused framework based on five Trust Service Criteria and is not industry-specific. Its applicability depends on whether an organization processes client data in the cloud. HIPAA is a US law specifically for the healthcare industry, focused on protecting PHI. PCI DSS is an industry-driven standard applicable to any organization that handles cardholder data, aiming to secure payment card transactions. While SOC 2 addresses a range of data protection aspects, HIPAA specifically targets health information, and PCI DSS concentrates on payment card details.

What are some critical considerations for ensuring cloud compliance beyond understanding specific regulations?

Beyond knowing the specific regulations, critical considerations for cloud compliance include clearly defining who is accountable for compliance based on the cloud deployment model, implementing granular access controls to limit data access based on roles, ensuring robust encryption for data in transit and at rest, and establishing regular security audits to proactively identify and address vulnerabilities. Furthermore, adopting a holistic approach that includes security assessments, secure landing zones, continuous monitoring and logging, continuous risk assessment, and building strong governance frameworks is essential for sustained compliance.

How can JPStream assist businesses in achieving and maintaining cloud compliance?

JPStream approaches cloud compliance with a multi-pronged strategy designed to protect sensitive data and build trust. They partner with industry leaders to identify and remediate security gaps and have experience implementing cloud architectures for regulated industries like healthcare and fintech. Their services include security assessments to understand the business context and regulatory landscape, establishing secure landing zones with strict zero-trust access, implementing continuous monitoring and logging, performing continuous risk assessments, and helping to build governance benchmarks for certifications and accreditations. They also offer penetration testing to proactively identify network vulnerabilities.