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Cloud technology can cause regulatory compliance issues

On Behalf of | Oct 8, 2015 | Regulatory Compliance |

In business, it is always important to understand the rules of the game. This means keeping up with the latest laws and regulations governing one’s specific industry, in California and elsewhere. However, each industry has its own regulatory compliance issues, which can change periodically. Advances in technology can also significantly alter how business is conducted in a specific industry.

This phenomenon has occurred with the advancement of cloud technology. Although adopting cloud technology can make a business more efficient and effective, there may be some compliance issues that must be addressed for businesses in certain industries. For instance, the health care industry may have a challenging time adopting cloud technology while meeting compliance goals. This is due to the amount of data that must be tracked.

Financial services is another industry that may see some challenges in maintaining cloud technology in compliance with regulations. Some financial firms have taken to hiring whole teams of people to deal specifically with compliance. Many of the issues have to do with security, which can be of particular importance since people’s private financial information can be compromised.

Failure to meet regulatory compliance needs can result in fines levied by regulating agencies in California, no matter what industry. If this happens, a firm may have to consider taking legal action, when appropriate, in order to challenge any citations issued. Most large business concerns retain an experienced business and commercial law firm to offer advice and guidance in confronting these ongoing issues and to ensure full compliance with all applicable laws and regulations.

Source:, “Compliance could kill your cloud deployment: Here’s how to handle it“, Conner Forrest, Oct. 6, 2015



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