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Glossary term

HSM / KMS

Also: Hardware Security Module, Key Management System

HSM = tamper-resistant hardware for cryptographic operations (FIPS 140-2/3, Common Criteria). KMS = software layer for key management, often with an HSM backend. Mandatory components for regulated encryption.

HSM classes: network HSM (Thales Luna, Entrust nShield, Utimaco), cloud HSM (AWS CloudHSM, Azure Dedicated HSM, Google Cloud HSM), USB HSM. Important: FIPS 140-2 Level 3 or higher for regulated workloads.

Cloud KMS: AWS KMS, Azure Key Vault, Google Cloud KMS. Bring-Your-Own-Key (BYOK) allows import of a customer key. Hold-Your-Own-Key (HYOK) keeps the master key with the customer; cloud KMS cannot decrypt.

Audit cases: BAIT BTO 5 (cryptography), DORA Art. 9 (ICT security measures), NIS2 Art. 21 (h) (cryptography), BSI TR-02102 (cryptographic guidance). Key sovereignty and rotation discipline are classic audit focal points.

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