How to Solve Shadow IT in Your Business

Businesses driving for agility in operations often come up against the same problem: Shadow IT. For many businesses, the term may be unfamiliar, but its risks are significant. So, what is Shadow IT, and how can your business tackle it effectively?

What is Shadow IT?

Shadow IT refers to the use of software, applications, or devices that employees deploy without the knowledge or approval of the company's IT department. Whether it’s a new cloud storage service, a third-party collaboration tool, or personal devices being used for work, these unsanctioned tech solutions can create serious cybersecurity for SMEs challenges.

The appeal of Shadow IT is clear: it allows employees to find quick, convenient ways to work, communicate, or store data. However, without the proper oversight and security controls in place, it can also expose your business to significant risks such as data breaches, compliance violations, and cyberattacks.

What are the Risks?

When employees circumvent formal IT systems and policies, they inadvertently open the door to a host of vulnerabilities. Shadow IT can lead to:

• Data breaches: Without IT monitoring, sensitive business data can be exposed through unsecured channels or apps.
• Compliance issues: Many industries require businesses to comply with data security regulations like GDPR. Shadow IT makes it nearly impossible to meet these requirements.
• Increased costs: Unauthorised tools can lead to fragmented systems, inefficiencies, and hidden subscription costs.

For SMEs that lack large, dedicated IT departments, the risks are amplified. Partnering with a cyber security company can help businesses get a grip on their Shadow IT issues before they spiral out of control.

How to Solve Shadow IT

Now that you know what Shadow IT is, let’s explore how to combat it.

The first step to addressing Shadow IT is raising awareness. As many companies observe Cyber Awareness Month, it’s an excellent time to educate your workforce on the dangers of using unauthorised tools. Most employees don't realise the risks they're creating for the company, so providing regular training is key.

Encourage your staff to ask questions, seek guidance, and understand the implications of bypassing IT-approved solutions. This will foster a workplace culture where employees recognise the importance of cybersecurity and feel comfortable reaching out to IT for guidance.

Next, set a clear IT policy. A lack of clear IT policies often leads to Shadow IT creeping into your organisation. Develop and implement a strict cybersecurity policy that outlines which tools and applications are approved and explain the procedures employees must follow if they want to use new software or devices. This reduces the likelihood of employees seeking out their own tech solutions.

Make sure the policy is easy to understand and accessible. Your employees should know where to find it and how to comply. You may also want to include consequences for non-compliance to highlight the seriousness of the issue.

One of the reasons employees turn to Shadow IT is because the approved tools are often less user-friendly or don't fully meet their needs. Work with your IT team or MSP to understand the types of tools your employees need and make sure the company-sanctioned options are robust, efficient, and easy to use. Offer training to ensure employees know how to use them effectively.

To control Shadow IT, you must be aware of what's happening in your digital environment. Set up strong monitoring tools to track which applications are being used and how they’re being accessed. A cybersecurity for SME strategy often includes tools like endpoint detection and response systems that can alert IT when unauthorised software is being used. These monitoring solutions can help identify vulnerabilities and reduce the risks associated with Shadow IT.

Involve your IT department in all business decisions regarding technology from the start. This ensures that new tools and processes are properly vetted for security risks and compliance issues. Your IT department should be seen as a partner, not a roadblock. Encourage communication between departments to ensure everyone is aligned on technology needs and solutions.

For SMEs, managing Shadow IT can be a daunting task, especially without an in-house IT team to monitor and secure the environment. This is where cyber security companies can provide immense value. A managed service provider can help create a secure and compliant environment by offering regular security audits, real-time monitoring, and expert guidance.

Shadow IT is a growing challenge for businesses, but it can be managed with the right approach. By creating a culture of cyber awareness, implementing clear IT policies, and utilising strong monitoring tools, your business can minimise the risks associated with unauthorised software. Working with cybersecurity specialists or a managed IT service provider can also ensure that your IT infrastructure remains secure and compliant.

Take proactive steps to address Shadow IT, and protect your business from unnecessary risk and inefficiency.