Cloud outsourcing: a multigroup analysis of cloud risk and governance effectiveness of EU, US, and Canadian financial institutions
Anderson,Jamelia
Anderson,Jamelia
Abstract
One of the most important challenges facing financial institutions that outsource cloud technologies is the ability to devise efficient control structures. For this study, I surveyed senior cloud risk experts at large financial institutions in the US, the EU, and Canada to capture their concerns regarding 37 different risks in outsourcing. I employed a multigroup model to test for transaction misalignment and the overall degree of efficiency in managing risks. Empirical results reveal that institutional risk is a primary risk factor, and that all groups face similar risk and governance challenges, even in the face of divergent legal regimes and institutional practices. Additionally, the results showed that US institutions were among the most inefficient in the governance process. These findings indicate that hybrid transactions are difficult to govern owing to the incomplete nature of cloud contracts, the fragmented nature of the regulation, and the presence of institutional risk.
Description
Date
2025-09-19
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
Organizational Units
Journal Issue
Keywords
Cloud outsourcing, incomplete contracts, internal governance, Transaction cost theory, transaction misalignment, CB-SEM - multigroup analysis
Citation
Anderson, J 2025, 'Cloud outsourcing : a multigroup analysis of cloud risk and governance effectiveness of EU, US, and Canadian financial institutions', Risk Management-An International Journal, vol. 27, 17, pp. 1. https://doi.org/10.1057/s41283-025-00168-6
License
info:eu-repo/semantics/closedAccess