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Microsoft’s Data Security and Compliance Measures Ensure Financial Institutions’ Protection

In light of recent concerns regarding data security and compliance, Microsoft has taken significant steps to ensure that its cloud-based services meet the highest standards of protection for financial institutions. As a leading provider of cloud solutions, Microsoft recognizes the importance of safeguarding sensitive information and has implemented robust measures to prevent unauthorized access, use, or disclosure of customer data.

Data Transfer and Storage

Microsoft’s data centers are strategically located around the world, taking into account country and socioeconomic factors. The company’s data centers offer stable political environments, and the relevant locations constitute stable socioeconomic environments. Additionally, Microsoft’s data centers are secured to exacting standards, designed to protect customer data from harm and unauthorized access.

Risk Assessment

Microsoft has identified several risk areas that its customers typically consider important when outsourcing their business activities. These include:

Political risks: Cross-border conflict, political unrest, etc.
Country/socioeconomic risks: The company’s data centers are strategically located around the world, taking into account country and socioeconomic factors.
Infrastructure/Security/Terrorism risks: Microsoft’s data centers around the world are secured to the same exacting standards, designed to protect customer data from harm and unauthorized access.
Environmental risks: Earthquakes, typhoons, floods, etc. - Microsoft’s data centers are built in seismically safe zones and have implemented environmental controls to protect against these types of events.

Microsoft requires customers to obtain the necessary consents from individuals before transferring or storing their personal data offshore. The company acknowledges that it is the responsibility of financial institutions to ensure that all required consents from individuals are in place.

Compliance Within Your Organization

Financial institutions should have internal mechanisms and controls in place to properly manage outsourcing activities. Microsoft provides guidance on this matter, based on its experience of approaches taken by its customers. Ultimately, each financial institution must tailor its compliance practices to reflect its specific situation.

Due Diligence

Microsoft requires customers to undertake certain steps as part of their due diligence when selecting and engaging vendors or service providers for outsourcing activities. These steps include:

Developing policies on vendor/service provider engagement
Undertaking a tender/selection process for selecting the provider
Conducting a risk assessment to understand the implications of outsourcing a task or activity
Exercising due diligence in the selection and engagement of vendors or service providers
Implementing a thorough and rigorous contracting procedure with the vendor/service provider

CBN IT Standards Blueprint

Microsoft’s cloud services comply with the CBN IT Standards Blueprint, which requires that cloud service providers must comply with ISO 27018 (code of practice for protection of personally identifiable information in public clouds acting as PII processors) and ISO 27001 (information security management systems - requirements). Additionally, financial institutions must:

Develop policies on vendor/service provider engagement
Undertake a tender/selection process
Conduct a risk assessment
Exercise due diligence in the selection and engagement of vendors or service providers
Implement a thorough and rigorous contracting procedure with the vendor/service provider

By implementing these measures, Microsoft is committed to ensuring that its cloud-based services meet the highest standards of protection for financial institutions, providing them with confidence and peace of mind when outsourcing their business activities.