The risks of shadow IT in business

Definition of Shadow IT

Shadow IT, or “phantom IT,” refers to the use of computer systems, software, applications, and services without the approval or control of an organization's IT department. This practice has become common in many businesses because it can often bridge the gap between the operational needs of employees and the technological solutions available. Shadow IT offers employees the opportunity to adopt tools that meet their specific needs, even outside of the framework established by the organization. This flexibility can improve business efficiency and productivity, but it can also present security and compliance risks.

Origin of the term and evolution of the concept

The term “Shadow IT” emerged in the early 2000s when IT departments started noticing that employees were using non-compliant software to do their jobs more effectively. This trend accelerated with the arrival of Cloud computing and mobile technologies, which have made many technological tools accessible without the direct intervention of the company's IT department. The concept has evolved to include not only software and applications but also the use of any technology, infrastructure, or service that is beyond the control of traditional IT processes.

How is Shadow IT emerging in businesses?

Factors promoting Shadow IT

The factors are slow IT approval processes, the lack of solutions tailored to the specific needs of employees, or the ease of access to technology. These technologies include software such as communication applications, project management platforms, or clouds. Slow bureaucratic processes and the unavailability of agile solutions can push employees to look for faster, more flexible alternatives to meet their immediate needs. In this quest for quick solutions, employees can use shadow IT and external cloud services to get around bureaucratic hurdles and get the tools they need quickly.

Examples of Shadow IT within an organization

Examples of Shadow IT include using instant messaging services like WhatsApp for team communication, or adopting Google Drive for sharing sensitive files without the necessary protections, bypassing official solutions like secure corporate networks or company-approved VPNs. There are also other examples such as personal data processing software, such as spreadsheets for managing sensitive customer information, without appropriate backups. These circumvention practices, including the use of unauthorized cloud services, expose the business to security and compliance risks.

What are the risks of Shadow IT for a company?

Shadow IT can offer benefits in terms of flexibility and efficiency, but it also comes with significant risks that can compromise the integrity and security of a business. Users may be tempted to use unauthorized applications as part of Shadow IT, which can lead to data and resource fragmentation, as well as security vulnerabilities.

Shadow IT Security Risks

Vulnerabilities and potential threats

The main risk of Shadow IT is security. Apps and services that are used without official approval are generally not subject to the same security and compliance tests as authorized tools. This creates flaws in the company's security architecture that can lead to data breaches. Unmonitored systems can also be vulnerable to external attacks because they don't have the same security updates and defense protocols as IT-managed systems. This uncontrolled use can result in a loss of control over sensitive business data, compromising the confidentiality and integrity of user data.

Our solutions to overcome these risks

Impact of security breaches on the business

The consequences of these breaches can be disastrous such as the loss of sensitive data, damage to corporate reputation, financial costs associated with data breaches, and fines for non-compliance. Security incidents can also lead to a loss of trust on the part of customers and partners, as well as a potential interruption of business operations. It is therefore essential for the IT department to put in place robust measures to monitor and control the use of applications and services by end users, in order to limit the risks associated with Shadow IT.

Impact on IT governance and compliance

Regulatory compliance issues

Using unapproved solutions can lead to violations of various regulations, such as the GDPR, which imposes strict rules on the management and protection of personal data. These violations can not only result in hefty fines but also costly litigation and increased regulatory oversight. It is therefore essential for the IT department to use surveillance and control measures to prevent the unauthorized use of IT applications and services.

Difficulties in managing data and IT resources

Shadow IT makes it difficult for IT departments to maintain an accurate inventory of technology resources used, making it difficult to manage software licenses, maintain systems, and enforce security policies. Technology fragmentation can also lead to operational inefficiencies and increase overall IT costs. Additionally, the proliferation of unapproved applications can create additional security risks by introducing unmonitored access points into the corporate network.

How to fight against Shadow IT?

To combat Shadow IT, it is essential to adopt a proactive approach, combining awareness, clear policies, appropriate technologies and active user involvement.

Prevention strategies

Strengthening IT security policies

It is crucial for businesses to develop and maintain clear IT security policies that are regularly communicated to all employees. These policies should include procedures for approving and acquiring new technology. Creating quick approval processes and clear application channels can help reduce the need for informal solutions.

Employee awareness and training

Training employees on Shadow IT risks and company policies is another critical strategy. A clear understanding of the implications of using unapproved technology can deter employees from using Shadow IT. Regular awareness sessions and security policy updates can increase compliance.

Solutions to counter Shadow IT

As part of Shadow IT management, it is crucial to have effective tools that not only detect the unauthorized use of technology but also offer viable and secure alternatives.

Rapid mapping and risk assessment of the SaaS ecosystem

The first step to effectively combat Shadow IT is to understand the scope and nature of SaaS applications used within the organization. Our solution, Rzilient, offers a technology that makes it possible to map the entire company's SaaS ecosystem in a few seconds and to assess the risks associated with each application. This comprehensive mapping helps businesses identify non-compliant uses and potential risks, laying the foundation for secure application management.

Ongoing monitoring for compliance

Once the SaaS ecosystem has been mapped, we help you maintain high compliance standards through continuous monitoring. This monitoring ensures that all external applications are used in accordance with current regulations, such as the GDPR, and internal company policies. This proactive approach minimizes the risks of data breaches and associated regulatory sanctions.

Find out how to implement these actions

Cost reduction through application management

In addition to security and compliance benefits, we identify and remove unused or at-risk SaaS applications that generate unnecessary costs. By eliminating these applications, businesses can not only reduce expenses but also focus their resources on tools that add real value.

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