Without the ability to monitor and control application use, software and apps that incorporate business data and integrate with existing business applications are at risk of cyber-attacks and malware infections. This leads to lost time, lost productivity, lost revenue, and lost reputation.
The governance and compliance risks from Shadow IT are extremely serious as sensitive data can easily be uploaded or shared. There are no processes to ensure confidentiality of data or access policies if an employee is storing corporate data in their personal DropBox or EverNote account. Breaches resulting from failing to meet compliance guidelines can lead to significant fines.