Shadow IT, a term that refers to technology solutions used by employees outside the scope of an organization’s IT department’s visibility or control, has become an increasing challenge for businesses globally. As digital tools and cloud-based services continue to evolve, more employees are finding their own ways to meet work needs outside of the company’s official IT framework. While this often stems from a desire for greater efficiency and ease of use, it introduces significant risks, including security vulnerabilities, compliance issues, and inefficiencies that can affect the overall functioning of an organization.
In light of these challenges, creating an effective policy to control shadow IT is more critical than ever. Such a policy ensures that the benefits of new technologies can be harnessed without compromising the organization’s security, regulatory compliance, and IT infrastructure. Below, we outline the steps businesses should take to effectively address and control shadow IT in the workplace.
The Risks Posed by Shadow IT
Shadow IT is not a new phenomenon, but its prominence has surged with the rise of cloud-based applications and mobile devices. Employees often choose these solutions for the flexibility and user-friendly features they offer, but these tools can bypass official security protocols and compliance checks.
The risks associated with shadow IT are substantial. A 2020 study by McAfee found that 80% of workers use unauthorized apps to store sensitive company data. This exposes organizations to data breaches, loss of intellectual property, and increased potential for phishing and malware attacks. The difficulty in monitoring these unauthorized applications creates blind spots for IT departments, allowing vulnerabilities to grow unchecked.
Moreover, businesses that rely on shadow IT may also face challenges with regulatory compliance. Many industries, particularly those in finance, healthcare, and government, must comply with strict regulations like GDPR, HIPAA, or SOX. When employees use unauthorized applications to process or store sensitive data, the risk of non-compliance rises, which could result in legal penalties or reputational damage.
Creating a Comprehensive Shadow IT Policy
Given these risks, businesses must develop a clear, comprehensive policy to control shadow IT. This policy should outline the expectations, responsibilities, and protocols for employees while balancing the need for agility and innovation with the necessity of maintaining control over corporate data and security. Below are key steps in creating an effective shadow IT policy.
1. Establish Clear Guidelines and Expectations
The first step in creating a shadow IT policy is to clearly define what constitutes “shadow IT” within the context of your organization. This involves identifying which technologies and platforms are considered unauthorized for use. The policy should also outline the potential consequences of using unapproved technologies, both for the organization and the individual employee. These could include disciplinary actions, data loss, or security breaches.
It is important to communicate these guidelines not as a list of restrictive rules, but as a framework that allows employees to understand the reasoning behind the policy. Explain that the goal is not to limit their productivity, but to protect sensitive company data and ensure compliance with industry regulations.
2. Create a Clear Approval Process
To prevent shadow IT, organizations should offer employees a clear process to request and gain approval for the use of new technologies. This process should be straightforward and encourage employees to submit their technology requests to the IT department or a designated security team before adopting any new tools.
A formal approval system allows organizations to vet the security measures and compliance standards of any new software, ensuring it aligns with corporate policies. This can be achieved through a combination of automated systems and a simple submission form that employees can complete quickly. By creating this streamlined approval process, businesses can capture new ideas and innovation while maintaining control over IT security.
3. Educate Employees About Risks
One of the most effective ways to control shadow IT is by educating employees about its risks and the importance of using authorized tools. While employees may use shadow IT with the best of intentions, many are not aware of the potential dangers involved, such as malware, data leaks, and compliance violations. Offering regular training and workshops on cybersecurity, data protection, and company IT policies can help employees understand the implications of using unauthorized tools.
Additionally, it’s important to emphasize that shadow IT is not inherently bad. Many employees choose unauthorized apps because they are trying to work more efficiently. By offering training on the alternatives available through the organization’s approved systems, employees can make informed choices and feel empowered to adopt solutions that meet their needs within the framework of company policy.
4. Implement Technology Solutions to Monitor Shadow IT
Even with clear policies and employee education in place, some degree of shadow IT is likely to persist. Organizations should leverage technology solutions that can help monitor and manage unauthorized IT usage. These tools can track the applications being used across the network, analyze cloud storage services, and flag suspicious behavior.
For example, Cloud Access Security Brokers (CASBs) are tools that help businesses gain visibility and control over the applications and data used in the cloud. These tools monitor user activity and enforce policies on data sharing and access, making it easier to detect shadow IT. Similarly, Data Loss Prevention (DLP) tools can help prevent sensitive information from being uploaded to unauthorized platforms.
The use of these technologies will not only help IT departments detect shadow IT in real-time but also help proactively prevent potential risks by providing security teams with the necessary data to take corrective actions when unauthorized tools are discovered.
5. Offer Approved Alternatives
Another effective way to limit the growth of shadow IT is by offering employees approved alternatives that meet their needs. If employees are using shadow IT to increase productivity or gain access to tools that are easier to use, provide them with similar, sanctioned alternatives. For instance, if employees use cloud storage services like Google Drive or Dropbox, consider implementing a secure, enterprise-grade cloud storage solution that aligns with the organization’s data security policies.
By offering these approved alternatives, businesses make it easier for employees to comply with the policy while still maintaining their productivity. In this way, employees are less likely to seek out unauthorized tools because the tools they need are readily available and easy to use.
6. Continuously Review and Update the Policy
The world of technology is rapidly evolving, and what was considered shadow IT a year ago may now be an accepted part of the corporate infrastructure. Therefore, it’s important for organizations to review and update their shadow IT policies regularly. This review process should take into account new technologies, emerging threats, and changes in regulations. It’s also crucial to monitor the effectiveness of the policy itself and adjust it as needed to stay ahead of potential risks.
Involving key stakeholders from IT, legal, and compliance teams in this process will ensure that the policy remains comprehensive and adaptable to the evolving technological landscape. Regular audits and feedback loops with employees can also help identify pain points in the policy, allowing organizations to make adjustments that increase compliance without negatively affecting productivity.
7. Foster a Collaborative IT Culture
Ultimately, the most effective way to control shadow IT is to create a culture of collaboration between IT and business units. Encourage open dialogue between employees and IT staff so that employees feel comfortable sharing their technology needs and concerns. By involving employees in the decision-making process for approved tools and solutions, organizations can reduce the likelihood of shadow IT emerging in the first place.
When employees see IT as a partner rather than a gatekeeper, they are more likely to respect IT policies and work collaboratively to address issues. Additionally, employees may feel more empowered to suggest new technologies that can benefit the business while still adhering to security and compliance guidelines.
Conclusion
Shadow IT is a growing challenge that can introduce significant security, compliance, and operational risks for businesses. However, by creating a well-defined policy that educates employees, implements robust monitoring solutions, and provides alternative tools, businesses can mitigate these risks and control unauthorized technology use. An effective policy not only reduces the threat posed by shadow IT but also fosters an environment of collaboration and trust between IT and employees, ensuring that innovation is embraced without compromising security or compliance.
