Management of Cloud Risk Governance: Analyzing Top Risk Topics and a Maturity Model

Abstract

This research explores the challenges and strategies for effective cloud risk management within organizations. It addresses the complexities introduced by cloud computing, including varying responsibilities with cloud service providers (CSPs), rapidly changing technologies, and the need for alignment among multiple stakeholders. The study also investigates why organizations often struggle with cloud risk governance and how they can gain better control, providing practical, actionable steps. The focus is on the use of public cloud services within large organizations across various sectors, aiming to identify critical challenges and develop effective solutions for cloud risk governance. A design science approach is used for this research. It begins with a comprehensive literature review to establish a theoretical foundation and identify gaps in current knowledge. This is followed by two phases of structured interviews with subject matter experts to gain insights into practical challenges and effective strategies in cloud risk governance. A third validation phase with experts follows. The collected data is coded to identify key cloud-specific risks and to construct the Cloud Risk Governance Maturity Model. The research identifies "8 Top Risk Topics" as critical areas for organizations to prioritize. Additionally, it introduces the Cloud Risk Governance Maturity Model, which delineates five levels of maturity characterized by specific criteria across three dimensions. The study concludes that effective cloud risk governance is achievable through a focused approach on the 8 Top Risk Topics and the application of the Cloud Risk Governance Maturity Model. Organizations can systematically assess their current governance state, identify areas for improvement, and progress towards an optimized level of maturity. The maturity model promotes a security-by-design approach, ensuring all stakeholders are well-aligned and integrating cloud risk governance into the organization's strategy and operational processes. This research contributes to the field by providing a structured framework for organizations to navigate the complexities of cloud risk governance. By implementing insights from the research, organizations can develop a cohesive and effective approach to cloud risk governance.