Big Data, Unstructured Data, and the Cloud: Perspectives on Internal Controls

Abstract

The concepts of cloud computing and the use of Big Data have become two of the hottest topics in the world of corporate information systems in recent years. Organizations are always interested in initiatives that allow them to pay less attention to the more mundane areas of information system management, such as maintenance, capacity management, and storage management, and free up time and resources to concentrate on more strategic and tactical issues that are commonly perceived as being of higher value. Being able to mine and manipulate large and disparate datasets, without necessarily needing to pay excessive attention to the storage and management of all the data that are being used, sounds in theory like an ideal situation. A moment’s consideration reveals, however, that the use of cloud computing services, like the use of outsourcing facilities, is not necessarily a panacea. Management will always retain responsibility for the confidentiality, integrity, and availability of its applications and data, and being able to develop the confidence that these issues have been addressed. Similarly, the use of Big Data approaches offers many advantages to the creative and the visionary, but such activities do require an appropriate understanding of risk and control issues.