The Cloud: Selected Benefits, Risks, and Insurance Coverage Issues (Part 1) — Barnes & Thornburg
 Cloud Risk: Do You Transfer Liability Along with Data? Many of us were using data clouds before we even knew what they were. Now, while most of us are comfortable with the concept, we may not be comfortable knowing who is liable when data is lost, damaged or breached. It's not a given that your cloud provider absorbs any liabilities, and it's not a given they can even afford the liability should it arise. Below are quotes from an article by Scott Godes, Kara Cleary, and Heidi Fessler of Barnes & Thornburg LLP on the subject, and a link to their complete article. Godes, Cleary, and Fessler list several cloud-related risks: data breaches, data loss, interruption of access, compromised credentials and broken authentication, and denial of service. But two other categories for concern are: #1. BYOC, or Bring Your Own Cloud. Employees may be innocently using productivity applications that store work data on non-company clouds, in effect, "bringing their own clouds" to the workplace. #2. Multi-Tenancy. This involves risks posed when unrelated cloud users are sharing the same computing resources. "Both the cloud provider and the user must be aware of system and data security to prevent a breach in the security. In addition, when a risk is realized, it may not always be clear who is at fault for the [...]