Hidden risks in the system: How to identify, assess, and mitigate shadow IT

Transparency, security, and efficiency are essential for IT managers in medium-sized companies—but shadow IT undermines all of these. In this article, we show you how to get invisible systems under control before they become a problem.

Imagine a meeting with senior management. The agenda includes analyzing the cause of the latest failure. The problem: it involves a system that doesn’t really belong to anyone and crashed completely unexpectedly. No monitoring. No backups. No documentation. Who operated it? Who even knew about it? The answer: a former employee from the controlling department. No one had it on their radar. Welcome to the reality of shadow IT.

This scenario is not unique. Many medium-sized companies have a multitude of IT systems, applications, and scripts that are operated outside of the official infrastructure—usually for pragmatic reasons, often without malicious intent, but with enormous risk.

What is shadow IT—and why is it dangerous?

Shadow IT describes IT solutions that are operated without the knowledge or consent of the central IT department. These include locally installed applications, self-hosted services, unauthorized cloud solutions, and private workarounds.

At first glance, these systems seem harmless—they work, don’t bother anyone, and help the department. But appearances can be deceiving: without maintenance, documentation, or central knowledge, each of these systems becomes a potential weak point. Security breaches, data loss, or process interruptions are only a matter of time—especially when the person responsible leaves the company.

Why shadow IT arises—and what it reveals to us

Shadow IT is not purely an IT problem, but rather a reflection of a lack of communication and unclear responsibilities. When departments feel that their concerns are not being addressed by IT—whether due to prioritization, lack of transparency, or complex processes—they seek alternatives.

These systems often arise from acute pressure to act: “We had to set something up quickly.” But the short-term problem triggers new—and above all invisible—challenges in the long term. Shadow IT is therefore also a signal: IT is not perceived as an active enabler—but as a stumbling block.

Shadow IT often arises from short-term challenges faced by employees. (Source: Adobe Stock – Ganesha88)

How to identify and tackle shadow IT

  1. Identify: Where are hidden systems lurking? Hold open discussions with specialist departments and closely observe existing processes. Clues include local installations, proprietary scripts, “unofficial” tools, or unusually fast response times to changes—without documented tickets.
  2. Assess: How big is the risk? What dependencies exist? How business-critical is the system? Are there security concerns or outdated technologies? Clearly prioritize where action is needed – before it’s too late.
  3. Integrate: How do we bring structure to it? Relevant systems should be gradually transferred to central IT. This includes: clear responsibilities, technical documentation, backups, security concepts, and monitoring. Tact and sensitivity are required here – not everything has to be shut down immediately.
  4. Educate: Why does this affect everyone? Explain clearly why shadow IT is a risk – not as a control measure, but as a safeguard for everyone. Show how central IT can help establish stable, secure, and maintainable solutions – together, not against each other.
  5. Avoid: How do we prevent new shadows? Create transparent ways to request new IT systems: short response times, clear contact persons, traceable processes. This reduces the incentive for individual actions and strengthens trust in IT.

Shadows arise where there is no light

Shadow IT is not an act of sabotage—it is a call for better structures, faster support, and cooperative communication. Those who ignore it risk downtime and security breaches. Those who take it seriously can learn from it and make IT a true enabler.

flowciety supports IT managers in creating transparency, identifying risks, and securing the IT architecture holistically – with a strategic view of the big picture and a deep technical understanding.

Download our Whitepaper on IT Architecture (in German) now for even deeper insights.

Source header image: Adobe Stock – Studio.no7