the_order/docs/architecture/SOVEREIGNTY_COMPLIANCE.md

# Cloud for Sovereignty Compliance Guide

**Last Updated**: 2025-01-27  
**Status**: Comprehensive Compliance Framework  
**Standard**: Microsoft Cloud for Sovereignty

## Overview

This document outlines how The Order project achieves and maintains compliance with Microsoft Cloud for Sovereignty requirements, ensuring data residency, operational control, and regulatory compliance.

## Compliance Requirements

### 1. Data Residency

**Requirement**: All data must remain within specified geographic regions and never be replicated to non-approved regions.

**Implementation**:
- ✅ Azure Policy enforcement for region restrictions
- ✅ Regional resource groups and storage accounts
- ✅ Database geo-restrictions
- ✅ CDN regional restrictions
- ✅ No cross-region data replication (except for DR)

**Verification**:
```bash
# Check resource locations
az resource list --query "[].{Name:name, Location:location}" --output table

# Verify policy compliance
az policy state list --filter "complianceState eq 'NonCompliant'"
```

### 2. Operational Sovereignty

**Requirement**: Customer maintains control over operations with limited Microsoft access.

**Implementation**:
- ✅ Customer-managed encryption keys (CMK)
- ✅ Azure Lighthouse for customer control
- ✅ Independent logging and monitoring
- ✅ Customer-managed backups
- ✅ Audit trail independence

**Key Vault Configuration**:
- Premium SKU with HSM-backed keys
- Soft delete and purge protection enabled
- Private endpoints only
- Customer-managed keys for all services

### 3. Regulatory Compliance

**Requirement**: Compliance with local regulations, data protection laws, and industry standards.

**Implementation**:
- ✅ GDPR compliance (EU data protection)
- ✅ eIDAS compliance (electronic identification)
- ✅ ISO 27001 alignment
- ✅ SOC 2 Type II readiness
- ✅ Industry-specific compliance

**Compliance Dashboards**:
- Azure Policy compliance dashboard
- Microsoft Defender for Cloud compliance
- Regulatory compliance reporting
- Audit log retention (90 days production, 30 days dev)

## Architecture Components

### Management Group Hierarchy

```
Root Management Group
├── Landing Zones
│   ├── Platform (shared services)
│   ├── Production
│   ├── Staging
│   └── Development
├── Identity
├── Connectivity
└── Management
```

### Regional Deployment

Each region includes:
- Hub virtual network with Azure Firewall
- Spoke virtual networks for workloads
- Private endpoints for all PaaS services
- Regional Key Vault with CMK
- Regional Log Analytics workspace
- Regional backup vault

### Network Architecture

**Hub-and-Spoke Model**:
- Centralized security (Azure Firewall)
- Private connectivity (VPN/ExpressRoute)
- Network segmentation
- DDoS protection
- WAF for public endpoints

**Private Endpoints**:
- All PaaS services use private endpoints
- No public internet exposure
- DNS resolution via Private DNS zones
- Network security groups for additional isolation

## Policy Framework

### Data Residency Policies

**Policy**: Enforce data residency restrictions
```json
{
  "if": {
    "allOf": [
      {
        "field": "location",
        "notIn": ["westeurope", "northeurope", "uksouth", ...]
      }
    ]
  },
  "then": {
    "effect": "deny"
  }
}
```

**Policy**: Require customer-managed encryption
```json
{
  "if": {
    "allOf": [
      {
        "field": "Microsoft.Storage/storageAccounts/encryption.keySource",
        "notEquals": "Microsoft.Keyvault"
      }
    ]
  },
  "then": {
    "effect": "deny"
  }
}
```

### Security Policies

**Policy**: Require private endpoints
**Policy**: Enforce TLS 1.3 minimum
**Policy**: Require MFA for all users
**Policy**: Enforce RBAC assignments
**Policy**: Require security monitoring

### Compliance Policies

**Policy**: Enable Defender for Cloud
**Policy**: Enable diagnostic logging
**Policy**: Require backup configuration
**Policy**: Enforce tag requirements
**Policy**: Require cost management

## Monitoring and Compliance

### Compliance Monitoring

**Azure Policy Compliance**:
- Daily compliance scans
- Non-compliance alerts
- Compliance dashboard
- Remediation automation

**Microsoft Defender for Cloud**:
- Security posture assessment
- Regulatory compliance dashboard
- Security recommendations
- Threat protection

**Cost Management**:
- Budget alerts
- Cost anomaly detection
- Resource utilization tracking
- Reserved capacity optimization

### Audit and Logging

**Audit Logs**:
- Activity logs (90 days retention)
- Diagnostic logs (30-90 days)
- Security logs (1 year retention)
- Compliance logs (7 years for legal)

**Log Storage**:
- Regional Log Analytics workspaces
- Customer-managed encryption
- Private endpoints only
- Immutable storage for compliance

## Data Protection

### Encryption

**At Rest**:
- Customer-managed keys (CMK)
- Azure Key Vault Premium with HSM
- Double encryption where available
- Key rotation policies

**In Transit**:
- TLS 1.3 minimum
- Certificate management via Key Vault
- Perfect Forward Secrecy
- Certificate pinning for APIs

### Data Classification

**Classification Levels**:
- Public
- Internal
- Confidential
- Highly Confidential

**Classification Tags**:
- Applied to all resources
- Enforced via Azure Policy
- Used for access control
- Monitored for compliance

## Access Control

### Identity Management

**Azure AD**:
- Centralized identity management
- Conditional access policies
- MFA enforcement
- Privileged Identity Management (PIM)

**RBAC**:
- Least privilege principle
- Role-based access control
- Regular access reviews
- Just-in-time access

### Network Access

**Private Endpoints**:
- All PaaS services
- No public internet access
- DNS resolution via Private DNS
- Network security groups

**Azure Firewall**:
- Centralized network security
- Application rules
- Network rules
- Threat intelligence

## Backup and Disaster Recovery

### Backup Strategy

**Database Backups**:
- Daily full backups
- Hourly incremental backups
- Point-in-time restore
- Geo-redundant storage (within region)

**Storage Backups**:
- Blob versioning
- Soft delete enabled
- Immutable storage for compliance
- Cross-region backup (DR only)

**Configuration Backups**:
- Terraform state backups
- Infrastructure as Code
- Configuration versioning
- Disaster recovery documentation

### Disaster Recovery

**RTO/RPO Targets**:
- RTO: 4 hours
- RPO: 1 hour
- DR regions: Secondary region per primary
- Failover procedures: Automated and manual

**DR Testing**:
- Quarterly DR tests
- Failover procedures documented
- Recovery validation
- Lessons learned documentation

## Compliance Reporting

### Regular Reports

**Monthly**:
- Compliance status report
- Security posture assessment
- Cost optimization report
- Policy compliance summary

**Quarterly**:
- Regulatory compliance review
- Access review completion
- DR test results
- Security audit findings

**Annually**:
- Comprehensive compliance audit
- Third-party security assessment
- Regulatory certification renewal
- Architecture review

## Compliance Checklist

### Data Residency
- [ ] All resources in approved regions
- [ ] No cross-region replication (except DR)
- [ ] Regional resource groups
- [ ] Policy enforcement active

### Operational Sovereignty
- [ ] Customer-managed keys for all services
- [ ] Independent logging and monitoring
- [ ] Customer-managed backups
- [ ] Audit trail independence

### Security
- [ ] Zero Trust architecture
- [ ] Encryption at rest and in transit
- [ ] Private endpoints for all services
- [ ] Threat protection enabled

### Compliance
- [ ] GDPR compliance verified
- [ ] eIDAS compliance verified
- [ ] Audit logs retained
- [ ] Compliance dashboards active

### Monitoring
- [ ] Compliance monitoring active
- [ ] Security monitoring active
- [ ] Cost monitoring active
- [ ] Alerting configured

## References

- [Microsoft Cloud for Sovereignty](https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/ready/sovereignty/)
- [Azure Well-Architected Framework](https://learn.microsoft.com/en-us/azure/architecture/framework/)
- [Azure Security Benchmark](https://learn.microsoft.com/en-us/azure/security/benchmarks/)
- [GDPR Compliance](https://learn.microsoft.com/en-us/compliance/regulatory/gdpr)
- [eIDAS Compliance](https://learn.microsoft.com/en-us/compliance/regulatory/offering-eidas)

---

**Last Updated**: 2025-01-27