“Technological advances, combined with the ubiquity of
the Internet, have spawned a near-infinite range of
potentially grave security threats to governments,
commercial entities and individuals.”
Paul Rosenzweig
Can we still trust the „cloud‟?
What are the local laws that govern data being
collected, transferred and stored?
BIGGEST INHIBITOR TO THE
ADOPTION OF CLOUD COMPUTING

Data Security
SENSITIVE DATA IN THE CLOUD
More data, more storage
Personally identifiable information examples
• Credit card information
• Medical records
• Tax records
• Customer account records
• Human resources information
• Banking and insurance records
• Browsing history, emails and other communication
CLOUD SECURITY - STAKEHOLDERS
Data
collector/owner

Cloud service
providers

•Outsourcing:
How to select
a cloud vendor?
•How to
maintain
direct control
to safeguard
data integrity?

•How to satisfy
data residency
and privacy
requirements
•How to remain
flexible and
provide costeffective
service?

Regulator
•Formulation of
relevant
standards and
practices
•How to ensure
adoption and
compliance?
•Would
sensitive data
end up
overseas?

Customers/endusers
•Are my data
safe in the
cloud?
•Would I know
if there is
security or
privacy breach?
ISSUES ON CLOUD SECURITY

Security

Residency

Privacy

Is the data
protected from
theft, leakage,
spying or attacks?

Where is the
data stored?
geographically
disbursed?

Who can see
personally
identifiable
information (PII)?

What is the level
of control and
protection?

What to do with
data in transit &
outside territory?

Storing,
transferring,
locating and
protecting PII
Info on 3rd
party service
and distributed
infrastructure
Deliver
resiliency,
availability and
flexibility of
cloud services

Maintaining
ownership and
control of data

Challenges
of cloud
and
security
COMPLIANCE REQUIREMENTS
• Some countries have laws restricting storage of data
outside their physical country borders: India, Switzerland,
Germany, Australia, South Africa and Canada
• EU: Data Protection Directive; Safe Harbor Principles – no
sending PII outside European Economic area unless
protections guaranteed
• USA: US Patriot Act, 40+ states have breach notification
laws (25 states have exemption for encrypted personal
data)
• Canada: Freedom of Information and Protection of Privacy
Act
HONG KONG
• Section 33(2)(f) of Personal Data (Privacy) Ordinance,
• Forming standards through HK/Guangdong Expert
Committee on Cloud Computing Services and
Standards
• Guidelines and information via infocloud.gov.hk
INTERCEPTION OF COMMUNICATIONS:
REGULATIONS IN HK
• Article 30 of the Basic Law: freedom and privacy of
communication of Hong Kong residents shall be protected
by law
• Law enforcement agencies: Interception of
Communications and Surveillance Ordinance (Cap 589)
• Non-public officers and non-governmental bodies:
Telecommunications Ordinance (s24, s27, s29), Personal
Data (Privacy) Ordinance, s161 of Crimes Ordinance
TWO ISSUES TO THINK ABOUT
- Data residency: Transfer of personal information or
moving data storage device outside of local
jurisdiction
- Data encryption: Data should be encrypted before
being sent to the cloud, and that data owner retains
the encryption keys
KEY QUESTIONS TO ASK
• What do we need? What is our goal?
• Where are the risks?
• What are the systems, processes, policies and
practices we need to mitigate risks?
• How to protect our data assets and keep cloud
platform secure?
• How to ensure transparency and compliance?

• How to evaluate potential cloud service providers?
CRITICAL AREAS
Governance

Operation

Governance and Enterprise Risk
Management

Traditional Security, Business
Continuity and Disaster Recovery

Legal and Electronic Discovery

Data Center Operations

Compliance and Audit

Incident Response, Notification and
Remediation

Information Lifecycle Management

Application Security

Portability and Interoperability

Encryption and Key Management
Identity and Access Management
Virtualization
PLANNING AHEAD:
STRATEGIC APPROACH
• Service models: SaaS, PaaS, IaaS?
• Multiple layers:
Physical security (facilities)
Network security (infrastructure)
System security (IT systems)
Application and data security
IDENTIFY, LOCATE AND DEFINE THE RISKS
Identification and valuation of assets
Identification and analysis of threats
and vulnerabilities
Risk and incident scenarios
Analysis of the likelihoods of scenarios,
risk acceptance levels and criteria
risk treatment plans with multiple
options (control, avoid, transfer, accept)
CONSISTENCY BETWEEN
YOU AND YOUR PROVIDER
• Alignment of impact analysis criteria and definition
of likelihood
• Specify assessment and risk management
requirement e.g. vulnerability assessment, audit logs,
activity monitoring
• Detailed in Service Level Agreements, contract
requirements, and provider documentation
OPERATION: KEY AREAS
• Disaster Recovery and Business Continuity
• Breach notification and data residency
• Data management at rest

• Data protection in motion
• Encryption key management
• Identification and Access controls
• Long-term resiliency of the encryption system
Charles Mok
Legislative Councillor (Information Technology)
charles@charlesmok.hk
www.charlesmok.hk
Facebook: Charles Mok B
Twitter: @charlesmok

The Impact of Cloud: Cloud Computing Security and Privacy

  • 2.
    “Technological advances, combinedwith the ubiquity of the Internet, have spawned a near-infinite range of potentially grave security threats to governments, commercial entities and individuals.” Paul Rosenzweig
  • 4.
    Can we stilltrust the „cloud‟? What are the local laws that govern data being collected, transferred and stored?
  • 5.
    BIGGEST INHIBITOR TOTHE ADOPTION OF CLOUD COMPUTING Data Security
  • 6.
    SENSITIVE DATA INTHE CLOUD More data, more storage Personally identifiable information examples • Credit card information • Medical records • Tax records • Customer account records • Human resources information • Banking and insurance records • Browsing history, emails and other communication
  • 7.
    CLOUD SECURITY -STAKEHOLDERS Data collector/owner Cloud service providers •Outsourcing: How to select a cloud vendor? •How to maintain direct control to safeguard data integrity? •How to satisfy data residency and privacy requirements •How to remain flexible and provide costeffective service? Regulator •Formulation of relevant standards and practices •How to ensure adoption and compliance? •Would sensitive data end up overseas? Customers/endusers •Are my data safe in the cloud? •Would I know if there is security or privacy breach?
  • 8.
    ISSUES ON CLOUDSECURITY Security Residency Privacy Is the data protected from theft, leakage, spying or attacks? Where is the data stored? geographically disbursed? Who can see personally identifiable information (PII)? What is the level of control and protection? What to do with data in transit & outside territory? Storing, transferring, locating and protecting PII
  • 9.
    Info on 3rd partyservice and distributed infrastructure Deliver resiliency, availability and flexibility of cloud services Maintaining ownership and control of data Challenges of cloud and security
  • 10.
    COMPLIANCE REQUIREMENTS • Somecountries have laws restricting storage of data outside their physical country borders: India, Switzerland, Germany, Australia, South Africa and Canada • EU: Data Protection Directive; Safe Harbor Principles – no sending PII outside European Economic area unless protections guaranteed • USA: US Patriot Act, 40+ states have breach notification laws (25 states have exemption for encrypted personal data) • Canada: Freedom of Information and Protection of Privacy Act
  • 11.
    HONG KONG • Section33(2)(f) of Personal Data (Privacy) Ordinance, • Forming standards through HK/Guangdong Expert Committee on Cloud Computing Services and Standards • Guidelines and information via infocloud.gov.hk
  • 12.
    INTERCEPTION OF COMMUNICATIONS: REGULATIONSIN HK • Article 30 of the Basic Law: freedom and privacy of communication of Hong Kong residents shall be protected by law • Law enforcement agencies: Interception of Communications and Surveillance Ordinance (Cap 589) • Non-public officers and non-governmental bodies: Telecommunications Ordinance (s24, s27, s29), Personal Data (Privacy) Ordinance, s161 of Crimes Ordinance
  • 13.
    TWO ISSUES TOTHINK ABOUT - Data residency: Transfer of personal information or moving data storage device outside of local jurisdiction - Data encryption: Data should be encrypted before being sent to the cloud, and that data owner retains the encryption keys
  • 14.
    KEY QUESTIONS TOASK • What do we need? What is our goal? • Where are the risks? • What are the systems, processes, policies and practices we need to mitigate risks? • How to protect our data assets and keep cloud platform secure? • How to ensure transparency and compliance? • How to evaluate potential cloud service providers?
  • 15.
    CRITICAL AREAS Governance Operation Governance andEnterprise Risk Management Traditional Security, Business Continuity and Disaster Recovery Legal and Electronic Discovery Data Center Operations Compliance and Audit Incident Response, Notification and Remediation Information Lifecycle Management Application Security Portability and Interoperability Encryption and Key Management Identity and Access Management Virtualization
  • 16.
    PLANNING AHEAD: STRATEGIC APPROACH •Service models: SaaS, PaaS, IaaS? • Multiple layers: Physical security (facilities) Network security (infrastructure) System security (IT systems) Application and data security
  • 17.
    IDENTIFY, LOCATE ANDDEFINE THE RISKS Identification and valuation of assets Identification and analysis of threats and vulnerabilities Risk and incident scenarios Analysis of the likelihoods of scenarios, risk acceptance levels and criteria risk treatment plans with multiple options (control, avoid, transfer, accept)
  • 18.
    CONSISTENCY BETWEEN YOU ANDYOUR PROVIDER • Alignment of impact analysis criteria and definition of likelihood • Specify assessment and risk management requirement e.g. vulnerability assessment, audit logs, activity monitoring • Detailed in Service Level Agreements, contract requirements, and provider documentation
  • 19.
    OPERATION: KEY AREAS •Disaster Recovery and Business Continuity • Breach notification and data residency • Data management at rest • Data protection in motion • Encryption key management • Identification and Access controls • Long-term resiliency of the encryption system
  • 20.
    Charles Mok Legislative Councillor(Information Technology) [email protected] www.charlesmok.hk Facebook: Charles Mok B Twitter: @charlesmok