Managed Instances should avoid using the default geo-redundant storage for backups, if data residency rules require data to stay within a specific region. Note: Azure Policy is not enforced when creating a database using T-SQL. If not explicitly specified, database with geo-redundant backup storage is created via T-SQL.
A financial institution must fully understand the inherent risk of adopting cloud services. In this regard, a financial institution is required to conduct a comprehensive risk assessment prior to cloud adoption which considers the inherent architecture of cloud services that leverages on the sharing of resources and services across multiple tenants over the Internet. The assessment must specifically address risks associated with the following:
(a) sophistication of the deployment model;
(b) migration of existing systems to cloud infrastructure;
(c) location of cloud infrastructure;
(d) multi-tenancy or data co-mingling;
(e) vendor lock-in and application portability or interoperability;
(f) ability to customise security configurations of the cloud infrastructure to ensure a high level of data and technology system protection;
(g) exposure to cyber-attacks via cloud service providers;
(h) termination of a cloud service provider including the ability to secure the financial institution's data following the termination;
(i) demarcation of responsibilities, limitations and liability of the service provider; and
(j) ability to meet regulatory requirements and international standards on cloud computing on a continuing basis.