FedRAMP
U.S. government framework standardizing cloud security authorizations
Basel III
Global framework for bank capital, leverage, liquidity standards
Quick Verdict
FedRAMP standardizes cloud security for US federal agencies via 3PAO assessments, while Basel III mandates capital, leverage, and liquidity rules for global banks. Cloud providers seek FedRAMP for contracts; banks adopt Basel III to ensure solvency and avoid penalties.
FedRAMP
Federal Risk and Authorization Management Program
Key Features
- Assess once, use many times across agencies
- NIST 800-53 Rev 5 baselines (Low/Moderate/High)
- Continuous monitoring with monthly deliverables
- Independent 3PAO security assessments required
- FedRAMP Marketplace for authorized CSOs
Basel III
Basel III: Finalising post-crisis reforms
Key Features
- Strengthened CET1 capital ratios and buffers
- Non-risk-based leverage ratio backstop
- Liquidity Coverage Ratio for 30-day stress
- Net Stable Funding Ratio for funding stability
- Enhanced Pillar 3 RWA disclosure templates
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
FedRAMP Details
What It Is
FedRAMP (Federal Risk and Authorization Management Program) is a U.S. government-wide framework standardizing security assessment, authorization, and continuous monitoring for cloud service offerings (CSOs) used by federal agencies. Its primary purpose is enabling "assess once, use many times" to reduce duplication, accelerate cloud adoption, and ensure NIST SP 800-53 Rev 5 risk-based controls aligned with FIPS 199 impact levels (Low, Moderate, High, LI-SaaS).
Key Components
- Baselines with ~156/323/410 controls for Low/Moderate/High impacts.
- Core artifacts: SSP, SAR, POA&M, continuous monitoring plans.
- Built on NIST standards; requires 3PAO independent assessments.
- Compliance via Agency/Program Authorizations listed in FedRAMP Marketplace.
Why Organizations Use It
CSPs pursue FedRAMP for federal contract access (e.g., $20M+ opportunities), CMMC alignment, and commercial differentiation. It mitigates risks, builds stakeholder trust, and unlocks government procurement.
Implementation Overview
Involves categorization, documentation, 3PAO assessment, remediation; typical for CSPs targeting federal market. 12-18 months, high costs ($150k-$2M+); audits ongoing via quarterly/annual reviews.
Basel III Details
What It Is
Basel III is the global prudential regulatory framework developed by the Basel Committee on Banking Supervision (BCBS) post-2008 financial crisis. This standard strengthens bank resilience by enhancing capital quality and quantity, introducing leverage constraints, and mandating liquidity buffers. It uses a risk-based, multi-metric approach combining RWA-based ratios, non-risk measures, and buffers to address solvency and liquidity weaknesses.
Key Components
- **Pillar 1Minimum capital ratios (CET1 4.5%, Tier 1 6%, Total 8%) plus buffers (conservation 2.5%, countercyclical, G-SIB); leverage ratio ≥3%; LCR and NSFR.
- **Pillar 2Supervisory review and ICAAP.
- **Pillar 3Granular disclosures for RWA comparability. No certification; compliance enforced nationally.
Why Organizations Use It
Banks adopt it for mandatory compliance, superior shock absorption, leverage control, and liquidity resilience. It optimizes balance sheets, improves transparency, reduces arbitrage, and boosts stakeholder trust amid jurisdictional variations.
Implementation Overview
Phased programs assess gaps, upgrade data/IT, revise models, and enhance governance. Applies to internationally active banks; involves QIS, parallel runs, and supervisor audits. Multi-year effort with ongoing monitoring.
Key Differences
| Aspect | FedRAMP | Basel III |
|---|---|---|
| Scope | Cloud security assessment, authorization, monitoring | Bank capital, leverage, liquidity requirements |
| Industry | Cloud providers serving US federal agencies | Internationally active banks globally |
| Nature | US government authorization program | Global prudential regulatory standards |
| Testing | 3PAO assessments, continuous monitoring | Internal models, supervisory review, disclosures |
| Penalties | Loss of authorization, no federal contracts | Fines, capital restrictions, enforcement actions |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about FedRAMP and Basel III
FedRAMP FAQ
Basel III FAQ
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