How is the compliance of the cloud service provider's legal and regulatory requirements verified when securing personally identifiable information (PII) data in the cloud?

The verification of a cloud service provider's compliance with legal and regulatory requirements for securing personally identifiable information (PII) is effectively ensured through third-party audits and attestations. These audits typically involve independent assessments by external parties who evaluate the provider's security controls, compliance with industry standards, and adherence to relevant regulations. This process provides a trustworthy assurance that the cloud service provider meets necessary legal requirements and follows best practices for protecting sensitive information.

The results of these audits are often documented in publicly accessible reports, such as SOC 2 reports, which detail the evaluation of controls related to security, availability, processing integrity, confidentiality, and privacy. This external validation is crucial because it demonstrates compliance to stakeholders, including customers and regulatory bodies, thereby instilling confidence in the provider's ability to safeguard PII.

While contractual agreements can outline compliance expectations, they do not provide independent validation of adherence to those requirements. The e-Discovery process is primarily concerned with legal proceedings and may not specifically verify compliance with all legal and regulatory requirements. Researching data retention laws, although important, does not serve as a verification method for compliance but rather aids in understanding applicable regulations. Thus, third-party audits and attestations stand out as the most effective means for verifying compliance in this context.