A business unit is planning to replace an existing IT legacy solution with a hosted Software as a Service (SaaS) solution.
However, business management is concerned that stored data will be at risk.
Which of the following would be the MOST effective way to reduce the risk associated with the SaaS solution?
Click on the arrows to vote for the correct answer
A. B. C. D.A.
The migration from an existing IT legacy solution to a hosted Software as a Service (SaaS) solution is a common decision for organizations seeking to modernize their IT infrastructure, reduce costs and benefit from the scalability and flexibility offered by cloud-based solutions. However, concerns around the security and confidentiality of stored data can be a valid concern for business management, and it is important to address these concerns proactively.
Out of the four options provided, the MOST effective way to reduce the risk associated with the SaaS solution is to include risk-related requirements in the SaaS contract (option A). This approach ensures that the SaaS provider is contractually obliged to meet specific security and privacy requirements related to the storage, processing and transmission of data. The contract should also include provisions for auditing, monitoring and reporting on compliance with these requirements, as well as remedies for breaches and non-compliance.
Creating key risk indicators for the SaaS solution (option B) can be a useful tool for ongoing risk management and monitoring, but it is not a substitute for a contractual agreement that specifically addresses the security and privacy requirements of the organization. Key risk indicators can help identify potential risks and issues, but they do not provide the same level of assurance as a contractual agreement that specifies the security and privacy controls that must be implemented.
Redefining the risk appetite and risk tolerance (option C) can be a useful exercise in the context of an overall risk management strategy, but it is not directly related to reducing the risk associated with the SaaS solution. This option may be more relevant if the business unit is undergoing a broader strategic shift that requires a reassessment of risk tolerance and appetite.
Researching the technology and identifying potential security threats (option D) is an important step in the risk management process, but it is not the MOST effective way to reduce the risk associated with the SaaS solution. While it is important to understand the potential security threats and vulnerabilities of the SaaS solution, this information should inform the risk-related requirements that are included in the SaaS contract.
In summary, including risk-related requirements in the SaaS contract is the MOST effective way to reduce the risk associated with a hosted Software as a Service (SaaS) solution. This approach ensures that the organization's specific security and privacy requirements are contractually agreed upon and enforced, and provides a higher level of assurance than other options such as creating key risk indicators or researching potential security threats.