To effectively overcome shadow IT and unwarranted usage of cloud resources at FinTech Inc., the organization should implement cloud governance.

Cloud Governance Defined: Cloud governance is a set of rules and policies that govern the use of cloud resources. It ensures that the IT infrastructure is used in a way that aligns with the company’s strategic goals, compliance requirements, and security standards1.

Addressing Shadow IT:

Policy Creation: Establish clear policies regarding the use of cloud services and the procurement of IT resources.

Enforcement Mechanisms: Implement controls to enforce these policies, such as requiring approval for new cloud services or software.

Education and Training: Educate employees about the risks associated with shadow IT and the importance of following IT department rules.

Monitoring and Reporting: Use tools to monitor cloud usage and report on compliance with governance policies.

Benefits of Cloud Governance:

Control and Visibility: Provides better control over IT resources and visibility into how they are being used.

Cost Management: Helps prevent unnecessary spending on unapproved cloud services.

Security and Compliance: Ensures that cloud services are used in a secure and compliant manner, reducing the risk of breaches.

References:

Microsoft Learn: Discover and manage Shadow IT1.

CrowdStrike: What is Shadow IT? Defining Risks & Benefits2.

Microsoft Security Blog: Top 10 actions to secure your environment3.

SC Magazine: Stop chasing shadow IT: Tackle the root causes of cloud breaches4.