Author: Jeff Weeks, Senior Vice President and Chief Information Security Officer
Key Takeaways
- Shadow IT grows when employees adopt tools to solve problems faster than IT can approve them
- Unmanaged apps and AI tools can expose sensitive data and create compliance risks
- Visibility is the foundation of managing Shadow IT effectively
- Organizations can reduce risk without slowing innovation by offering approved alternatives
What Is Shadow IT and Why Does It Happen?
Shadow IT refers to unsanctioned apps, cloud services, and AI tools that are often spread within organizations as employees seek faster ways to solve immediate problems.
Also known as rogue IT or unsanctioned IT, Shadow IT has become more common with the rise of cloud and AI tools.
Why Shadow IT Creates Security and Compliance Risk
Risk emerges when sensitive data flows into systems outside the control of IT and security teams. Industry surveys consistently link cloud breaches to misconfigurations and unmanaged assets. (See Exabeam’s cloud security statistics for an overview.)
How to Manage Shadow IT: A Practical 4-Step Framework
Managing Shadow IT requires a structured and balanced strategy that improves visibility without slowing down innovation:
1. Discover: Use attack surface management, Cloud Access Security Broker (CASB), and Security Service Edge (SSE) tools to identify applications and data flows across the environment. These help organizations see and control cloud usage.
2. Assess: Categorize applications according to data sensitivity, authentication mechanisms, and vendor security certifications (e.g., SOC 2, ISO 27001).
3. Enable: Provide approved alternatives with strong user experience. Establish a fast-track review process to evaluate and approve new tools quickly and efficiently.
4. Educate: Help employees understand why some tools are restricted, including concerns related to:
- Data residency
- Data loss prevention (DLP)
- Regulatory compliance
How Unapproved Apps and File Sharing Tools Create Security Exposure
Unapproved file-sharing tools used for vendor collaboration often result in unintended public link exposure or even credential stuffing attacks. Common mitigation strategies include:
- Auto-expiration of shared links
- Strict external sharing policies
- Continuous posture assessments via API integrations
How Individuals Can Reduce Shadow IT Risk in Their Accounts
Cleaning up your digital footprint is an important step in reducing your security exposure. Review connected applications in your Google, Microsoft, and social media account settings. Revoke access to unused or unknown apps. Be mindful of the risks when granting broad permissions to convenience tools. Convenience should never come at the expense of security.
Why a Balanced Approach to Shadow IT Works Best
Shadow IT is not going away. In fact, it continues to grow as employees adopt new tools to work faster and more efficiently. Education is critical because cyber attacks increasingly target human behavior rather than technical vulnerabilities.
When organizations combine visibility, governance, and enablement, they can reduce risk without slowing innovation. A balanced approach ensures teams have the tools they need while maintaining the security and compliance standards the organization depends on.
Frequently Asked Questions About Shadow IT
What is Shadow IT?
Shadow IT – also called Rogue IT – refers to apps, cloud services, or AI tools used within an organization without approval from IT or security teams. They are often adopted to improve speed or productivity but may not meet security or compliance standards.
Why is Shadow IT a security risk?
Shadow IT increases risk because it can result in sensitive data being stored or shared outside of approved systems. Without IT visibility or control, organizations may face data exposure, compliance issues, or security vulnerabilities.
What are examples of Shadow IT?
Common examples include unapproved file-sharing tools, personal cloud storage used for business files, or AI tools used to process work data without IT approval.
Why does Shadow IT happen in organizations?
Shadow IT usually happens when employees need faster or more effective tools than what is currently provided. It often reflects gaps in usability, access, or speed, not intentional policy violations.
How can organizations reduce Shadow IT risk?
Organizations can reduce Shadow IT risk by improving visibility into application usage, offering secure and approved alternatives, and creating a fast-track process for evaluating and approving new tools.
For more security tips and resources, visit the FNBO Security Center.
About the Author
Jeff has been with First National Bank of Omaha for more than 26 years and is currently the Senior Vice President and Chief Information Security Officer. The executive leadership and oversight provided by Jeff in the development, management, and execution of information security for FNBO enables the company’s ability to posture and protect private, personal information, and assets of the company’s clients, employees, and business partners.
