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Everything You Need to Know About FedRAMP

October 28, 2024 | Cloud Security

Established in 2011, FedRAMP is a U.S.-based cloud security framework aimed at ensuring sensitive federal government data remains protected. By defining strict cybersecurity standards for cloud service organizations, FedRAMP plays a crucial role in enabling U.S. federal agencies to confidently adopt secure cloud solutions.

Understanding what the framework entails and how it applies to your organization is the first step in navigating FedRAMP’s complex requirements. Here’s everything you need to know before you embark on your journey to FedRAMP authorization.

What is FedRAMP?

The Federal Risk and Authorization Management Program (FedRAMP) is a government-wide program that establishes strict data security and risk management standards for cloud service providers (CSPs) that work with federal agencies in the U.S. Based on the security controls laid out in NIST 800-53, the framework lays out a number of security controls related to access rights, vulnerability scanning, system monitoring, incident reporting, and more. Organizations whose cloud products and services are used by U.S. government agencies are required to comply with FedRAMP. 

Achieving FedRAMP authorization is a detailed process that requires careful planning and the assistance of a qualified Third-Party Assessment Organization (3PAO). To complete the authorization process, CSPs must partner with a federal agency that is willing to sponsor them. 

CSPs that have not yet secured sponsorship from a federal agency can achieve “FedRAMP Ready” status, which means that a 3PAO has attested to the organization’s security posture, and a Readiness Assessment Report (RAR) has been reviewed and deemed acceptable by the FedRAMP Program Management Office (PMO). This status remains valid for 12 months, but requires continuous monitoring; CSPs must submit monthly security reports to demonstrate ongoing compliance.

An organization is designated as “FedRAMP In-Process” once they have partnered with a 3PAO, locked in a federal agency sponsor, and are navigating the assessment process, with an anticipated Authority to Operate (ATO) date on the calendar.

CSPs can choose to pursue one of four levels of authorization: 

  • Low, which covers basic confidentiality, integrity, and availability protections; 
  • Moderate, which adds more stringent controls and is the most popular level of authorization;
  • High impact, which is required for CSPs working with highly sensitive data that requires the most rigorous protection; or,
  • Li-SaaS, which is designed for low-impact authorizations and organizations that don’t interact with personally identifiable information (PII).

Prior to beginning the authorization process, organizations can choose to complete a readiness assessment to identify and remediate control gaps and weaknesses to ensure a smooth audit.

Do You Need FedRAMP Authorization?

Whether headquartered within the United States or internationally, cloud service providers must comply with FedRAMP requirements in order to do business with U.S. government agencies. If you have no plans to pursue government contracts, it may not make sense to undergo the lengthy and sometimes costly FedRAMP authorization process. However, CSPs that could potentially be part of the government ecosystem, either directly or indirectly through their customers, should thoughtfully consider pursuing FedRAMP authorization.

Even if your organization does not currently work with U.S. government agencies, you may still consider FedRAMP as a guiding measurement of cybersecurity maturity for your cloud service offering, thus increasing customer confidence in your brand.

Undergoing the FedRAMP authorization process with an accredited third-party assessor not only helps your team identify and remediate vulnerabilities in your risk management procedures, but also opens the door for your company to compete for government business and positions your organization as one that customers and stakeholders can trust. It can also give you a competitive advantage over other cloud service providers when bidding as part of a government RFP process. 

For organizations aiming to grow and mature their compliance programs, achieving FedRAMP authorization may not be as great of a lift as you think. Many FedRAMP requirements, especially those related to control implementation and security governance, can map back to leading industry standards like ISO 27001, PCI DSS, and HIPAA. By leveraging BARR’s coordinated audit approach, cloud service organizations can build a unified compliance program that fulfills customer requirements and accelerates business growth.

In 2025, BARR will be accredited as a Third Party Assessment Organization (3PAO), allowing us to help organizations achieve full FedRAMP authorization. Contact us today to get started mapping out your path to FedRAMP compliance.

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