In the Cyber World where data is king, organization are gathering information from various sources. However all the data is not managed effectively. Here the term “Shadow Data” occurs.

Shadow data refers to any information created, stored, or shared by employees that falls outside the organization’s sanctioned data management systems. This includes files on personal devices, data stored in unsanctioned cloud applications, and even spreadsheets shared via email. While this data might make employees’ lives easier, it poses significant challenges for organizations.

In organization, data are stored in various way such as cloud, NAS, Hard Disk, email etc. and organizations have data access policy. Generally data access and data transmission are done in secure way and governed by relevant IT team or AI system.

But sometimes data are transmitted using employee’s personal email or flash drive in unencrypted form without the knowledge or control of the IT department and forgot to erase and this kind of data pose a security risk to organizations. and this data may called as Shadow Data.

How does Shadow data generate?

A data may become “Shadow Data” by various way. Some of them are –

Using Personal Email: Most of the organization have its own email control system which can be managed, monitored and controlled by IT team. but sometimes due to employee’s convenience, data are transmitted through personal email which can not be monitored by the organization and data may store in the employee’s email forever.
Using unauthorized software: Organization have its own authorized software to use. But sometimes employee may use third party un-authorized software or online portal to do task and forget to remove data. Or there may not be any option to delete data. Suppose a PDF file need to compress and someone do this task in some random online website by uploading the file. The website may store the file permanently.
Old storage Device: Suppose a organization need to change their computer or hard disk and those old data are left on that computer or disk then it become Shadow Data.
Data Share: Data may be shared among the employees with various medium. But sharing through unauthorized third party app or cloud services become Shadow Data.

Risk of Shadow Data

As Shadow Data are not accounted by organization and unreachable to security and privacy policy. As Shadow Data is stored in unsecured environment, unencrypted and without access restriction, this data is vulnerable to breaches, which can have dire consequences for an organization’s reputation and bottom line.

Shadow Data can complicate backup processes, analytics, and overall data governance, adding unnecessary complexity to IT operations.

How to protect from Shadow Data Risk?

To minimize the risk from Shadow Data, following strategies may adopt:

Data Audits: Periodic assessment of Data flow and IT Infrastructure, Hardware is essential.
Data Policy: Organization must design data handling policy with guide lining proper data share and data store.
Access Control: Use strict access control to ensure only authorized users can access sensitive data. Implement role-based access control and attribute-based access.
Secured Network and Software: Organization should make the network secure. Only permissible website or software should open in organization. No personal device or email should use in organization’s system.
User Monitor: Employee should be monitored by authority to check their IT Equipment usage in organization.
Encryption: Make Important and confidential file encrypted and password protected.
Training and Awareness: Arrange training and awareness on risk associated with Shadow Data including data security, organizational policies and regulation.

In the fast-paced world of data management, shedding light on shadow data is essential. With the right strategies in place, businesses can navigate these hidden challenges and turn potential risks into opportunities for informed decision-making and growth.

By fostering a proactive approach to data governance, organizations can ensure that all data—seen and unseen—serves their strategic objectives effectively.