Friday 20 April 2018

Perils Of Shadow IT In The Current Age Of GDPR Compliance

Shadow IT is definitely a menace that enterprises have to deal with most definitely if they are looking to achieve GDPR compliance.

Shadow IT Is An Obstacle To Achieving GDPR Compliance

Since the time cloud has taken the center stage, there has been a flood of online services and apps, which are freely available and this has given rise to the concept of Shadow IT in the enterprises. Shadow IT is nothing but the unauthorized use of third-party apps by employees of an enterprise inside their workplaces. This poses a serious threat to the data security of the enterprise data because the IT department is unaware of it being used by its employees and hence it is not being checked for its security across channels. In Shadow IT, the services are used either intentionally or unintentionally and are downloaded by the employees to get their projects and jobs easily completed. The European Union’s General-Data-Protection-Regulation (GDPR) act comes into full force on May 25th, 2018 and the enterprises must brace themselves to strengthen up their data security or face the consequences of being fined under the new regulation.

Why Is Shadow IT A Serious Concern?

Companies, many-a-times, do not offer the most appropriate tools required by the employees to make their tasks easier. When there is heavy workload and a number of tasks are to be completed within somewhat limited time, then employees look for ways and means to hasten up the processes to finish their tasks within the stipulated time. This leads to the eagerness seen in the download and usage of cloud apps (which may be the ones that are unauthorized) and services, which are suitable to the employees to cut corners and get their job done. Also, there is backlog in the IT department for sanctioning of employee requests to have some tools authorized through official channels. This often leads to the use of popular online services and thus starts the tryst of the enterprises in dealing with the Shadow IT menace.

Shadow IT And Its Repercussions On GDPR Compliance

When there is Shadow IT, there is the risk of third-party services processing the enterprise data. This becomes a cause of concern, because it goes against the rules of GDPR, and as per this, the use or processing any sensitive information without the gained consent of the company is prohibited. Here, in Shadow IT, the third-party has full access to the sensitive information without the knowledge of the enterprise and even without the approval of the customers. The enterprise is unaware that such a data transfer and sharing is taking place right under its nose through the guise of Shadow IT, which is in clear violation of GDPR rules. Online services also require that the personal information of any individual should not be used for business purpose without consent. Hence, all the parties involved in this unauthorized data transfer; namely, the enterprise and the associated cloud service provider can also be held guilty.

GDPR And Shadow IT

Shadow IT clearly oversteps the line set by GDPR by engaging with unauthorized third-parties. Employees and in turn the enterprise, clearly break their obligation of confidentiality by having the sensitive data shared with stakeholders and external individuals. On the first hand, the enterprises and the data controllers never have the permission to indulge in unauthorized data transfer to external services. Hence, when the GDPR’s right to be forgotten is evoked, then the companies will not be able to fully comply with the request. When personal data is uploaded to unknown websites, then the enterprises will be held accountable for it.

Eliminating Shadow IT And Achieving GDPR Compliance Through CASB Solutions

The menace of Shadow IT can be counteracted through CASB solutions with Data Loss Prevention modules. CASB solutions with DLP modules help enterprises to control the transfer of sensitive data on the cloud and alert any violations to policies that are enforced. Proper authorization, monitoring, authentication, and reporting ensure the security of the confidential data and achieve GDPR compliance; thereby eliminating Shadow IT threat. Time is definitely running out and enterprises need to speed up their security policies if they are to achieve GDPR compliance and save themselves from having to shell out hefty money in the form of fines and penalties.

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