The cloud computing has utilization of pervasive or distributed models on demand access to highly configurable computing devices for fast provision and less management efforts. The complex architecture, multitenant and virtual environment in cloud infrastructure asks for risks identification and mitigation. The cloud computing model business needs reassurances so it’s prime consideration for testing the cloud services. This research primarily identifies various risks, threats, testing models and vulnerabilities in cloud computing environment. This research has implemented the risk assessment and cloud readiness for PaaS environment by scanning its code with a software vendor. The research makes an emphasis on risk minimization strategies and trust evaluation in cloud computing environment.