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Cloud-based test automation: Managing data privacy risks in regulatory technology environments

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Contributors:

Harini Shankar

Director, technology

Financial Industry Regulatory Authority

Editor's note: The IAPP is policy neutral. We publish contributed opinion and analysis pieces to enable our members to hear a broad spectrum of views in our domains.

Multicloud architectures are being adopted by organizations in high numbers. This creates the need for robust development operations-driven software and it becomes critical for organizations to follow efficient and reliable approaches when it comes to test automation orchestration within continuous integration and deployment workflows.

However, this can introduce significant data privacy and additional compliance risks. If such risks occur in real production data, they can be concerning. Additionally, complexity increases when managing cross-border test environments and organizations must also ensure compliance with stringent regulatory requirements.

Key privacy risks in cloud-based test automation

Challenges in data residency and sovereignty. With multicloud architectures, data is dispersed across multiple platforms and geographic locations, requiring organizations to navigate data residency and laws in sovereignty.

There are regulations that dictate data storage, location and processing, which can potentially conflict with cloud strategies. For example, data protection measures are mandated in the EU General Data Protection Regulation and any noncompliance can result in penalties and reputational damage for organizations.

In regulatory technology environments, it is important to adhere to specific financial or health care regulations, which further complicates data management.

Data sharing risks and security gaps. Multiple teams are involved in distributed test environments. In addition, third-party vendors also play a role. This increases the risk of unauthorized data access and sharing.

It becomes critical to enforce stringent security controls. Without such measures, sensitive data can be exposed which can lead to potential breaches.

As cloud resources are shared, this can increase risks. These can manifest as vulnerabilities in one tenant's environment, potentially impacting others.

Contributors:

Harini Shankar

Director, technology

Financial Industry Regulatory Authority

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