Organizations are increasingly becoming aware of the business value that cloud computing brings and are taking steps towards transition to the cloud. With the diverseness of technologies, there are different security attacks and challenges. There are several important challenges that exist with regard to efficient provisioning and delivery of services through cloud. Threats on the cloud environment can be due to policy violation.Despite the use of protection systems to detect any malicious activities, policy violation is one factor that hinders widespread usage of cloud. The focus of this paper is on causes of policy violation that can affect the usage of cloud environment. In particular, the paper discusses four main causes of policy violation these are privacy, security regulatory and attacks on cloud. Some solutions to mitigate causes of policy violation were also discussed. This approach was evaluated by conducting a survey. The results were demonstrated using chi square. It was recommended that a strong security and applicable policy standard needs to be implemented and regulated more often. The global dimension of cloud computing requires standardized policy in each organization and practical solutions to enable stakeholders to assess their risks and establish adequate protection levels.