Compliance and security: how to stay ahead in a regulated world using Azure

In today's world, industries like FinTech, ISVs, and Digital Natives face a constant and growing challenge: ensuring both security and compliance. With regulatory bodies around the world tightening controls and increasing penalties, companies must adapt swiftly and decisively. This blog provides insights into upcoming compliance requirements for officers and legal teams on how to leverage Microsoft Azure to keep up with regulatory requirements while enhancing security.

The increasing regulatory pressure

Regulations in FinTech and Digital Native sectors

Industries such as FinTech are among the most highly regulated sectors, with complex legislation such as the GDPR (General Data Protection Regulation), PCI-DSS (Payment Card Industry Data Security Standard), and ISO 27001. These frameworks set strict rules for data privacy, financial transactions, and information security, with implications for both operational processes and strategic decisions. For instance, GDPR demands stringent data protection measures, while PCI-DSS outlines standards to safeguard cardholder information.

Many organizations are aware that new regulations are coming, but they are often not actively working on their implementation. Starting in January 2025, European companies must comply with the Digital Operations Resilience Act (DORA). Non-FinTechs must also comply with NIS2. This includes ensuring that reporting is in order. In the event of a security incident, it must be documented and it should be clear how it was handled and resolved. If an audit reveals that an organization is not in compliance, a substantial fine will follow, with the management team held jointly responsible. Therefore, it is crucial to meet the new security standards. This is especially important, as cyberattacks have become a daily occurrence, A key point is that cloud security is becoming increasingly prominent in the process of setting up platforms, ensuring that unpleasant surprises are avoided.

Consequences of non-compliance

The consequences of non-compliance are significant. Financial penalties alone can be
crippling, with fines under GDPR reaching up to €20 million or 4% of global revenue, depending on whichever is higher. Beyond monetary penalties, non-compliance can harm an organization's reputation and lead to a loss of customer trust. In regulated industries maintaining compliance is as much about building customer confidence as it is about meeting legal requirements.

Microsoft Azure and compliance at CloudNation

How CloudNation facilitates compliance with international standards

CloudNation can assist organizations get their Azure infrastructure compliant. Leveraging the power of Defender for Cloud in Azure, streamlining the regulatory compliance process by helping you to identify issues that are preventing you from meeting a particular compliance standard, or achieving compliance certification. Defender for Cloud continually assesses the environment-in-scope against standards. Based on assessments, it shows in-scope resources as being compliant or non-compliant with the standard, and provides remediation recommendations. 

Together with the customer we create a backlog to tackle recommendations from code to cloud. The best tools only work if they are configured correctly, as a Microsoft Partner CloudNation has the knowledge of setting up Defender for Cloud make optimal use of all its capabilities.

The power of Microsoft Azure

Microsoft Azure is a powerful ally for organizations aiming to navigate the compliance landscape. Azure's compliance framework supports over 90 international certifications including GDPR, PCI-DSS, and IS0 2700), which are especially relevant for heavily regulated industries. With built-in features that simplify compliance, Azure allows companies to implement security controls that meet or exceed regulatory expectations.

- GDPR: Azure provides Data Loss Prevention (DLP) capabilities, data encryption, and enhanced auditing to ensure GDPR compliance.
- PCI-DSS: Azure's PCI-DSS-compliant infrastructure includes network segmentation and rigorous access controls.
- ISO 27001: Azure's framework aligns with i1So 27001 through structured risk assessments and comprehensive security documentation.

Tools for automating compliance monitoring

Importance of automation in compliance management

With the ever-evolving nature of compliance requirements, automation has become essential for efficient compliance management. Manual compliance processes are not only time-consuming but also prone to error. Automating compliance allows companies to:

• Reduce human error and increase efficiency;
• Gain real-time insights into compliance status;
• Focus resources on strategic tasks rather than routine monitoring.

Azure tools and services for compliance automation

Azure offers a suite of tools designed specifically for compliance automation:

• Azure Policy. Enforces organization-specific policies across Azure resources ensuring consistency and compliance.
• Azure Defender for Cloud: Monitors cloud resources and provides automated recommendations to bolster compliance and security.
• Azure Sentinel: Enhances monitoring and reporting through Al-driven analytics detecting threats and assessing compliance risks.

By integrating these tools, companies can automate compliance checks and receive real-time alerts when a potential issue arises.

Best practices for implementing compliance automation

When implementing compliance automation, it's essential to choose tools that align with organizational goals and industry requirements. Here are a few best practices:

• Prioritize key compliance areas: Identify the most critical regulations and focus automation efforts on these areas;
• Integrate seamlessly: Select tools that integrate with existing compliance systems to reduce disruption;
• Regularly update compliance policies: As regulations evolve, ensure that automated processes and policies stay up-to-date.
  
  

Stay ahead

In heavily regulated industries, compliance and security are not optional - they are vital to business success. Microsoft Azure offers a comprehensive set of tools and frameworks to support compliance with international standards like GDPR, PCI-DSS, and ISO 27001. By automating compliance monitoring and utilizing Azure's built-in security features companies can stay ahead of regulations and focus on growth and innovation. For compliance officers and legal teams looking to enhance their compliance strategies Azure's suite of tools is an invaluable asset. Explore Azure's compliance features and dive deeper into how they can support your organization in a complex regulatory landscape.