Shadow IT, simply put, is the use of applications, software, or cloud services within your organization without the knowledge or approval of the IT department. This can include anything from messaging apps to cloud storage platforms. While Shadow IT may seem like a quick and convenient solution to business needs, it can actually expose your organization to significant risks that can severely impact operations.
Why Does Shadow IT Exist?
Shadow IT often arises from employees’ genuine need for efficient tools to do their jobs. When the tools approved by the organization don’t meet their needs, employees may turn to external solutions to achieve their goals. It’s important to remember that this isn’t necessarily malicious intent, but rather a sincere attempt to find effective solutions.
The Risks of Shadow IT
So why is Shadow IT a problem? Well, here are some prominent risks:
- Security Vulnerabilities: Unauthorized applications often lack the stringent security standards required by organizations, making them highly vulnerable to cyber attacks. A security breach in such an application can expose your organization to data theft, ransomware attacks, and other threats.
- Non-compliance: Many organizations are subject to strict data security and privacy regulations, such as GDPR. Using Shadow IT applications that do not comply with these regulations can lead to financial penalties and damage to your organization’s reputation.
- Loss of Control and Management: When the IT department is unaware of the applications in use, it cannot manage, maintain, or secure them properly. This loss of control can lead to difficulties in troubleshooting, implementing security updates, and ensuring compatibility with organizational systems.
- Legal and Reputational Risk: The use of Shadow IT can lead to violations of licensing agreements and privacy regulations, which can result in costly lawsuits and damage to your organization’s reputation.
- Operational Impact: Shadow IT can negatively impact the organization’s operations, causing system failures, compatibility issues, and delays in task completion.
Discovering Shadow IT
Before we delve into solutions, let’s discuss how to identify shadow IT within your organization. You can leverage existing tools and resources such as Microsoft Intune, which provides a graphical user interface for fleet-wide app management, or JumpCloud, which can identify installed browser extensions.
Both platforms allow you to generate reports on software installed on devices, including names, installation dates, and versioning. Additionally, you can explore specialized solutions like Cloud Access Security Brokers (CASBs), which monitor cloud app usage and identify unsanctioned apps, or SaaS management platforms that discover and manage unauthorized software usage. Network monitoring tools can also be used to track unusual data patterns or irregularities, which may indicate the use of unapproved applications or services.
Solutions for Shadow IT: Risk Management and Integration of Control Frameworks
Now, let’s explore how to Address Shadow IT:
- Awareness and Education: Training employees about the risks associated with Shadow IT is a crucial first step. Explain to them why it’s important to use only IT-approved applications and emphasize their personal responsibility in protecting the organization’s information assets.
- Transparency and Communication: Encouraging open communication between the IT department and employees is critical. The IT department needs to understand the business needs of employees and offer approved solutions that meet those needs. Conversely, employees should report any need for additional applications to the IT department.
- Policies and Procedures: Establishing clear policies and enforcing them regarding the use of Shadow IT is essential. The policies should define the approved applications, the responsibilities of employees and managers, and the sanctions in case of policy violation.
- Adopting Security Control Frameworks: Frameworks such as ISO 27001, NIST CSF, and COBIT provide comprehensive standards and guidelines for managing information security within an organization. Adopting these frameworks can help define processes, procedures, and controls that will mitigate the risk of Shadow IT and ensure effective risk management.
Due Care and Due Diligence
In addition, it is important to understand and practice the legal concepts of due care and due diligence. Due care refers to taking reasonable precautions to protect others from harm, while due diligence refers to continuous monitoring and action to ensure that these measures are effective. Adopting this approach in conjunction with control frameworks can significantly reduce the legal and reputational risks associated with Shadow IT.
Shared Responsibility: Who is Responsible for Information in Shadow IT?
One of the central challenges in managing Shadow IT is determining the responsibility for the information stored in these systems. It is a complex issue, as the responsibility is spread across several entities within the organization:
- The Employee: The employee who chooses to use a Shadow IT application bears direct responsibility for their use of the system, including the information they enter or upload to it. They are responsible for understanding the potential risks involved in using an unauthorized application and ensuring that the information they share does not violate the organization’s policies or privacy laws.
- The Manager: Managers play a key role in supervising their team’s activities, including their use of technology. They should be aware of the applications their team is using and ensure that they comply with the organization’s policies and security standards. A manager who is unaware of or ignores the use of Shadow IT in their team may be held responsible in the event of a security incident.
- The IT Department: Although Shadow IT occurs outside the direct management of the IT department, it still bears overall responsibility for information security within the organization. It must take proactive steps to identify and manage the use of Shadow IT, provide employees with approved alternatives, and educate them about the risks involved in using unauthorized applications.
- The Organization: Ultimately, the organization is primarily responsible for its information, regardless of the system in which it is stored. The organization is responsible for establishing clear policies regarding the use of technology, enforcing these policies, and ensuring that employees are aware of the risks and required procedures.
It is important to remember that responsibility for information in Shadow IT is not absolute and can vary depending on the specific circumstances of each case. In the event of a security incident related to Shadow IT, it may be necessary to examine the extent of responsibility of each of the parties involved and determine who is responsible for compensating for the damage caused.
Conclusion
Shadow IT is a real threat, but it’s not insurmountable. By taking a proactive approach that combines awareness, education, technology, and policy, organizations can mitigate the risks associated with Shadow IT and create a safer and more efficient work environment. Remember, the key to combating Shadow IT is proactive engagement. By fostering open communication, educating employees, and implementing robust security controls, you can safeguard your organization’s valuable assets and ensure a secure and compliant IT environment.
Key Takeaways:
- Shadow IT is the unauthorized use of applications and software within an organization, often stemming from employees’ genuine need for efficient tools.
- Shadow IT exposes the organization to security risks, non-compliance, loss of control, and negative operational impact.
- Addressing Shadow IT requires a holistic approach that combines awareness, education, technology, and policy.
- Adopting security control frameworks like ISO 27001 helps manage risks and reduce the risk of Shadow IT.
- Due care and due diligence are legal concepts referring to the steps required to protect others from harm. Due care refers to taking reasonable precautions, while due diligence refers to continuous monitoring and action to ensure these measures are effective.
- The responsibility for information in Shadow IT is shared among the employee, manager, IT department, and the organization as a whole.
Questions to Consider:
- How does your organization address the challenge of Shadow IT?
- Do you utilize security control frameworks to manage your information security risks?
- What additional steps can be taken to prevent the use of Shadow IT in your organization?
