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Managing Shadow IT: Top Strategies for 2025

Reco Security Experts
Updated
November 15, 2024
November 29, 2024
6 min read

What is Shadow IT?

Shadow IT occurs when employees use unapproved tools, software, and personal devices to manage tasks outside the IT department's visibility. While these solutions can boost productivity, they introduce security risks, exposing sensitive data to potential data breaches and complicating compliance efforts. Managing shadow IT effectively is necessary to maintain security without sacrificing agility.

12 Strategies for Managing Shadow IT in 2025

Shadow IT management demands a comprehensive solution that strikes a balance between security and operational flexibility. Here are some significant steps businesses can use to reduce shadow IT risks while increasing efficiency:

1. Discover and Identify Unapproved Applications

Start by using asset discovery tools to locate unauthorized tools and applications across the organization. Regular scans and inventory audits help identify shadow IT in use, revealing unknown cloud services and personal devices accessing company data.

2. Assess Risk Levels of Shadow IT Tools

Once discovered, assess the security risks each shadow IT tool poses. Evaluate risks based on factors like data access, compliance requirements, and security risks to determine whether the tools should be sanctioned, restricted, or removed.

3. Monitor High-Risk SaaS Applications

For high-risk SaaS apps, ongoing monitoring is a must. Make use of monitoring tools to track access patterns, flag suspicious behavior, and maintain oversight on any apps interacting with sensitive data.

4. Review and Categorize Unsanctioned Apps

Classify shadow apps based on their function, level of risk, and compliance requirements. This categorization contributes to applying consistent security measures across similar applications, helping the IT department address each category accordingly.

5. Balance Security with Productivity Needs

Create policies that protect data without disrupting business processes. A balanced approach ensures employees can use productivity-enhancing tools safely, supporting their workflow while maintaining security controls.

6. Develop Flexible, Dynamic Policies

Shadow IT must be managed with rules that change with the times and keep up with new technology. Make sure that policies are tailored to both operational and security needs. This will help the organization quickly adapt to new security threats.

7. Regularly Review and Update Policies

Review and update shadow IT rules often to keep up with how technology is changing. Policies are kept up-to-date so they can continue to work against new threats.

8. Use Advanced Reporting and Monitoring Tools

Use reporting tools that offer insights into app usage, data flows, and security risks. These tools provide data-driven visibility, helping the IT department proactively mitigate risks associated with shadow SaaS.

9. Employ Cloud Access Security Brokers (CASB)

Maintaining cloud services depends much on CASB solutions. They enforce security regulations, track cloud-based apps, and provide features such as data loss prevention to protect private data.

10. Use SaaS Security Posture Management (SSPM)

SSPM (SaaS Security Posture Management) solutions assess and enhance security postures across SaaS applications. By scanning for misconfigurations and security risks, SSPM helps ensure shadow IT tools align with security standards.

11. Ensure Compliance and Privacy in Shadow IT Management

Shadow IT management needs to keep up with regulations. Check if all tools are authorized or not, and follow the rules set by regulators. This will lower the risk of data protection breaches.

12. Maintain Ongoing Communication with Senior Management

Frequent communication with senior management keeps them aware of shadow IT risks and mitigation efforts. Their support is essential for policy enforcement and organizational commitment to managing shadow IT effectively.

How to Implement a Shadow IT Policy: Quick Summary 

Implementing a shadow IT policy involves several strategic actions to minimize risks while maintaining productivity. Here’s a quick summary of key steps to guide your approach:

Strategies Description
Discover and Identify Unapproved Applications Use asset discovery tools to locate unauthorized applications across the organization.
Assess Risk Levels of Shadow IT Tools Evaluate the security risks posed by each shadow IT tool based on data access and risks.
Monitor High-Risk SaaS Applications Track access patterns and monitor apps handling sensitive data to flag suspicious activity.
Review and Categorize Unsanctioned Apps Organize shadow IT tools by function and risk level to apply appropriate security measures.
Balance Security with Productivity Needs Develop policies that protect data without disrupting essential business workflows.
Develop Flexible, Dynamic Policies Create adaptable policies that respond to evolving tech trends and security risks.
Regularly Review and Update Policies Frequently update policies to ensure they remain effective against emerging threats.
Use Advanced Reporting and Monitoring Tools Make use of tools that provide insights into app usage and data flows to identify potential risks.
Employ Cloud Access Security Brokers (CASB) Use CASB solutions to monitor cloud-based applications and enforce security policies.
Implement Posture Management & Compliance Implement posture management and compliance across SaaS applications, identifying misconfigurations.
Ensure Compliance and Privacy in Shadow IT Management Verify that tools comply with regulations to reduce the risk of data protection breaches.
Maintain Ongoing Communication with Senior Management Keep leadership informed of shadow IT risks and mitigation efforts to ensure support for policies.

AI Impact on Shadow IT

As artificial intelligence quickly becomes part of work environments, it adds another level of complexity to shadow IT. Generative AI tools are often used without the supervision of IT, leading to what's known as shadow AI. Employees could be using these tools for data analysis, automation, or content creation, which can elevate security risks when AI solutions operate without proper oversight.

The uncontrolled use of AI in shadow IT poses specific difficulties. These include risks related to data privacy, as AI tools might access or analyze sensitive information without appropriate authorization, along with the possibility of data breaches caused by flaws in unauthorized AI applications. Organizations must engage in cautious monitoring, establish clear policies, and provide employee education to effectively manage shadow AI, guaranteeing that AI tools are used safely within approved frameworks.

How Reco Can Help Organizations Manage Shadow IT

By integrating Reco into your security strategy, your organization can effectively manage shadow IT, ensuring a secure and compliant operational environment. Here’s how Reco helps with that:

1. Comprehensive App Discovery: Reco provides full visibility into both sanctioned and unsanctioned applications, including third-party and generative AI tools. This ensures that all applications interacting with your organization's data are identified and monitored.

2. Risk Assessment and Prioritization: By evaluating the risk levels of connected applications, Reco helps prioritize which apps require immediate attention. This approach allows for efficient allocation of security resources to mitigate potential threats.

3. Continuous Monitoring and Threat Detection: Reco continuously monitors for suspicious activities within your SaaS ecosystem. Its dynamic policies address real-world cyber-attack scenarios, enabling rapid detection and response to threats such as ransomware and account takeovers.

4. Posture Management and Compliance: With over 500 one-click checks, Reco assesses the security posture of your SaaS applications, ensuring alignment with recommended configurations. This proactive approach helps maintain compliance with standards like SOC 2, ISO 27001, and GDPR.

5. Data Exposure Management: Reco maps all files and folders to monitor for unauthorized data sharing, protecting sensitive information and preventing data breaches. This feature is essential for maintaining data integrity and confidentiality.

Conclusion

In 2025, the management of shadow IT will become fundamental as enterprises face a constantly changing technology environment. Implementing an effective strategy, comprising the identification of unauthorized apps and the increase of employee understanding, allows organizations to protect their data and ensure compliance. 

By using solutions like Reco, organizations can be sure that their shadow IT management strategy remains strong, efficient, and responsive to emerging difficulties. Consequently, security and productivity can coexist, creating a more durable and dynamic operational environment.

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