diff --git a/.secrets.baseline b/.secrets.baseline
index fcab9952..ca54a3d6 100644
--- a/.secrets.baseline
+++ b/.secrets.baseline
@@ -3,7 +3,7 @@
     "files": "go.sum|^.secrets.baseline$",
     "lines": null
   },
-  "generated_at": "2023-12-11T06:39:44Z",
+  "generated_at": "2023-12-12T06:39:44Z",
   "plugins_used": [
     {
       "name": "AWSKeyDetector"
diff --git a/solutions/instances/main.tf b/solutions/instances/main.tf
index 96ab64f2..4c2fbbc9 100644
--- a/solutions/instances/main.tf
+++ b/solutions/instances/main.tf
@@ -38,7 +38,11 @@ locals {
   kms_region = ((length(coalesce(local.buckets_config, [])) != 0) ?
   (var.existing_cos_kms_key_crn == null ? module.kms_instance_crn_parser[0].region : null) : null)
 
-  cos_kms_key_crn = var.existing_cos_kms_key_crn != null ? var.existing_cos_kms_key_crn : length(coalesce(local.buckets_config, [])) != 0 ? module.kms[0].keys[format("%s.%s", local.cos_key_ring_name, local.cos_key_name)].crn : null
+  cos_kms_key_crn    = var.existing_cos_kms_key_crn != null ? var.existing_cos_kms_key_crn : length(coalesce(local.buckets_config, [])) != 0 ? module.kms[0].keys[format("%s.%s", local.cos_key_ring_name, local.cos_key_name)].crn : null
+  parsed_kms_key_crn = local.cos_kms_key_crn != null ? split(":", local.cos_kms_key_crn) : []
+  cos_kms_key_id     = length(local.parsed_kms_key_crn) > 0 ? local.parsed_kms_key_crn[9] : null
+  cos_kms_scope      = length(local.parsed_kms_key_crn) > 0 ? local.parsed_kms_key_crn[6] : null
+  kms_account_id     = length(local.parsed_kms_key_crn) > 0 ? split("/", local.cos_kms_scope)[1] : null
 
   cos_target_bucket_name     = var.existing_at_cos_target_bucket_name != null ? var.existing_at_cos_target_bucket_name : var.enable_at_event_routing_to_cos_bucket ? module.cos_bucket[0].buckets[local.at_cos_target_bucket_name].bucket_name : null
   cos_resource_group_id      = var.cos_resource_group_name != null ? module.cos_resource_group[0].resource_group_id : module.resource_group.resource_group_id
@@ -350,7 +354,7 @@ resource "time_sleep" "wait_for_authorization_policy" {
   create_duration = "30s"
 }
 
-# Data source to account settings for retrieving cross account id
+# Data source to account settings for retrieving COS cross account id
 data "ibm_iam_account_settings" "iam_cos_account_settings" {
   provider = ibm.cos
 }
@@ -365,10 +369,38 @@ resource "ibm_iam_authorization_policy" "policy" {
   source_service_account      = data.ibm_iam_account_settings.iam_cos_account_settings.account_id
   source_service_name         = "cloud-object-storage"
   source_resource_instance_id = local.cos_instance_guid
-  target_service_name         = local.kms_service
-  target_resource_instance_id = local.existing_kms_guid
   roles                       = ["Reader"]
-  description                 = "Allow the COS instance with GUID ${local.cos_instance_guid} reader access to the kms_service instance GUID ${local.existing_kms_guid}"
+  description                 = "Allow the COS instance ${local.cos_instance_guid} to read the ${local.kms_service} key ${local.cos_kms_key_id} from the instance ${local.existing_kms_guid}"
+  resource_attributes {
+    name     = "serviceName"
+    operator = "stringEquals"
+    value    = local.kms_service
+  }
+  resource_attributes {
+    name     = "accountId"
+    operator = "stringEquals"
+    value    = local.kms_account_id
+  }
+  resource_attributes {
+    name     = "serviceInstance"
+    operator = "stringEquals"
+    value    = local.existing_kms_guid
+  }
+  resource_attributes {
+    name     = "resourceType"
+    operator = "stringEquals"
+    value    = "key"
+  }
+  resource_attributes {
+    name     = "resource"
+    operator = "stringEquals"
+    value    = local.cos_kms_key_id
+  }
+  # Scope of policy now includes the key, so ensure to create new policy before
+  # destroying old one to prevent any disruption to every day services.
+  lifecycle {
+    create_before_destroy = true
+  }
 }
 
 module "cos_instance" {
@@ -377,7 +409,7 @@ module "cos_instance" {
   }
   count                    = var.existing_cos_instance_crn == null && length(coalesce(local.buckets_config, [])) != 0 ? 1 : 0 # no need to call COS module if consumer is using existing COS instance
   source                   = "terraform-ibm-modules/cos/ibm//modules/fscloud"
-  version                  = "8.11.11"
+  version                  = "8.14.1"
   resource_group_id        = local.cos_resource_group_id
   create_cos_instance      = true
   cos_instance_name        = var.prefix != null ? "${var.prefix}-${var.cos_instance_name}" : var.cos_instance_name
@@ -394,7 +426,7 @@ module "cos_bucket" {
   }
   count   = length(coalesce(local.buckets_config, [])) != 0 ? 1 : 0 # no need to call COS module if consumer is using existing COS bucket
   source  = "terraform-ibm-modules/cos/ibm//modules/buckets"
-  version = "8.11.11"
+  version = "8.14.1"
   bucket_configs = [
     for value in local.buckets_config :
     {