NEW REPORT: 
CLOUD WITHOUT CRISIS: 
FROM RISK TO RESILIENCE

NEW REPORT: 
CLOUD WITHOUT CRISIS: 
FROM RISK TO RESILIENCE

Building business and legal resilience: 10 market trends and practical strategies to prevent outages and manage incidents

Cloud infrastructure increasingly underpins every critical business function from customer engagement to compliance, operations to innovation. Yet resilience remains the Achilles’ heel. Whether it’s a catastrophic outage, a ransomware breach or a contractual blind spot, the fallout from cloud failure is no longer hypothetical, it becomes a boardroom issue.

Recent high-profile outages, have shown how a single failure can ripple across industries, shut down operations and trigger legal, financial and reputational challenges.

This report explores how resilience must be engineered into cloud strategy from the outset, not just recovered after the fact.

Whether you're a General Counsel, CIO, tech lawyer or other decision-maker, this is your blueprint for building cloud resilience.

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Key report highlights

Suspension rights

81%


of cloud contracts included suspension rights, posing a potential risk to continuity, especially for business-critical solutions.

Termination rights

69%


of cloud contracts included termination rights for defined persistent or critical service level failures.

Data backup obligations

58%


of cloud contracts included data backup obligations, though many lacked detail on frequency and scope.

Service credits

71%


of cloud contracts included service credits as a remedy for service level failure.

Strategic preparation for building cloud resilience

Strengthen training, policies and procedures


Reduce the risk of outages by activating your Incident Response Team and ensuring all roles are filled. Regularly update policies and implement clear procedures to guide response and maintain resilience.

Conduct due diligence and risk assessment


Build a resilient cloud strategy by mapping third-party dependencies and assessing cloud solutions for functionality, security, and compatibility. Vet providers for financial stability, regulatory compliance, and operational robustness.

Manage data location and back-up


Protect data and ensure compliance by identifying where data is stored and applying safeguards for international transfers. Test backup and recovery processes regularly to minimise data loss and downtime.

Run scenario and penetration testing


Expose vulnerabilities before they cause harm by simulating disruption scenarios and conducting independent penetration tests. Use insights to refine policies and ensure providers remediate risks.

Negotiate resilient supply chain contracts


Negotiate robust cloud contract terms by embedding binding service levels, incident management procedures and BCDR obligations into contracts. Include patch management provisions to minimise disruption during updates.

Incident response: Best practice for managing cloud incidents

Convene your Incident Response Team

Minutes matter during an outage. Immediately activate your Incident Response Team and confirm decision-making authority and communication protocols to avoid delays and roll out your Incident Response Plan.


Causation, impact & recovery

A swift recovery hinges on understanding the root cause and its impact. Bring in subject matter experts where needed and assess any data loss or corruption.


Protect your position

While collaboration is key, it’s equally important to safeguard your legal and financial interests. Review your contract to identify critical rights. Check your insurance coverage and carefully manage communications.


Stakeholder communications

Clear and consistent messaging is essential to maintaining trust and protecting your reputation. Engage crisis communication experts to support both internal and external messaging.


Criminal activity

If criminal activity is suspected, it’s important not to overlook relevant legal and regulatory risks. Include financial crime specialists in your response team to guide next steps. 


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