Compliance and Governance - Architecture Insights

Risk Management

Risk Assessment Process

Asset Identification: Catalog valuable resources
Threat Identification: Potential attack vectors
Vulnerability Assessment: System weaknesses
Risk Analysis: Impact and likelihood evaluation
Risk Treatment: Accept, mitigate, transfer, avoid

Risk management is not about eliminating all risk—it's about understanding which risks to accept, mitigate, transfer, or avoid based on business priorities.

Risk Rating (OWASP Methodology)

Likelihood Factors:
- Threat agent factors (skill, motive, opportunity, size)
- Vulnerability factors (ease of discovery, exploit, awareness)
Impact Factors:
- Technical impact (confidentiality, integrity, availability)
- Business impact (financial, reputation, non-compliance)

Compliance Frameworks

SOX (Sarbanes-Oxley Act)

Scope: US publicly traded companies
Requirements: Financial reporting controls and certification
IT Impact: Financial system security and access controls

Focus: Financial accuracy and transparency

PCI DSS

Scope: Organizations handling credit card data
Requirements:
- Secure network and systems
- Protect cardholder data
- Maintain vulnerability management program
- Strong access control measures
- Regular monitoring and testing
- Information security policy

Focus: Payment card data protection

SOC 2 for Service Providers

Service Organization Control 2 (SOC 2) evaluates service providers on five trust criteria: security, availability, processing integrity, confidentiality, and privacy. Type I reports provide a point-in-time assessment, while Type II reports evaluate controls over a period of time. These reports are critical for SaaS companies and cloud service providers.

Audit and Assessment

Security Audit Process

Planning: Scope definition and resource allocation
Fieldwork: Evidence collection and testing
Reporting: Findings documentation and recommendations
Follow-up: Remediation tracking and verification

Continuous Monitoring

Automated Compliance Checking: Policy violation detection
Security Metrics: Key performance indicators
Dashboard Reporting: Executive visibility
Trend Analysis: Security posture evolution

Automate Compliance Monitoring

Manual compliance audits are time-consuming and error-prone. Implement automated compliance checking tools that continuously monitor for policy violations and provide real-time alerts. This shifts compliance from a periodic burden to an ongoing, manageable process.