Software-as-a-service (SaaS) apps are cost-effective and scalable — providing businesses with many benefits, including support for remote working. As a result, SaaS app usage has proliferated. Data from 2022 shows that organizations used, on average, around 130 SaaS apps. However, the benefits of these apps are often offset by the challenges of managing such an extensive portfolio of apps. It can take a lot of time to identify, monitor, manage, and secure these apps. Another important challenge is the increased attack surface a large portfolio of SaaS apps presents, adding to an organization’s security risks.

This article explores why SaaS risk management is essential — and the best practices to achieve a robust SaaS risk management strategy.

What is SaaS risk management?

SaaS risk management is a mix of processes, policies, and tools that help identify, analyze, and mitigate the risks of SaaS apps. SaaS risk management and security aim to protect sensitive data created, stored, or shared using SaaS apps.

Many people who aren’t employees use an organization's SaaS stack —  including contractors, freelancers, supply chain vendors, and temporary or remote workers.. Security configurations and identity and access management are at the forefront of securing these data.

Why is SaaS risk management needed?

As SaaS apps proliferate, the attack surface expands as the individual points of attack increase. Security gaps open as access to these apps begins to fragment. The types of common SaaS risks associated with SaaS app sprawl include the following:

Sensitive data exposure

SaaS risk management is needed when unmanaged or unsanctioned SaaS apps lead to SaaS data being stored in unsecured systems. Sensitive or proprietary data, including intellectual property, can be shared among unauthorized individuals, putting privacy and security at risk. The spread of unmanaged apps opens the risk of data leaks, data theft, and unsanctioned data sharing and exposure. These heightened risks to data security and privacy also put regulatory compliance at risk.

Unauthorized access

In 2022, the dark web had almost 25 billion sets of usernames and passwords available on fraudulent marketplaces. Unmanaged SaaS apps lead to risks like unauthorized access, which can lead to data breach or exposure. Cloud-based apps are at increased risk of external attacks, brute force entry, and account takeovers (ATO). Phishing and social engineering are used to steal login credentials — including from privileged account holders — which are then sold on the dark web.

Licensing risks and cost

Unsanctioned or unmanaged SaaS app purchases or subscriptions can lead to licensing issues, including under-licensed apps or duplicate licenses. This adds costs and risks associated with unlicensed technology use.

Ransomware risks

In 2022, 51% of ransomware attacks targeted cloud and SaaS data. Attackers exploit weak access control measures and privileged accounts to facilitate an attack pathway that leads to ransomware infection. Risks from poorly configured apps also open doorways for attackers. Without full visibility of your SaaS apps, a company will be unable to monitor access risks.

Governance risks

SaaS tools can place your data governance and access management at risk. Shadow IT and unsanctioned apps that creep into your organization are challenging to manage without utilizing modern identity and governance administration (IGA). A lack of visibility across a disparate SaaS stack leads to a lack of oversight. Access management becomes increasingly challenging, and enforcement of least privilege access rights nearly impossible. Uncontrolled SaaS apps lead to non-compliance with a variety of data security standards and regulations, including SOC 2, GDPR, HIPAA, ISO27001, and many more.

Best practices to manage the risk of SaaS apps

By using best-practice SaaS risk management, popular apps like Asana, Monday, Slack, and Jira can remain productive and secure.

Carry out a SaaS vendor risk assessment

Practice vendor risk management by knowing your SaaS vendors. Check out their security credentials, and review their audit reports. Regularly review their compliance with your vendor and security policies. Diligent access governance and SaaS management minimize the risks that SaaS apps can bring into a company.

For details on what must be covered in a SaaS vendor risk management process, check out NIST’s “Software Security in Supply Chains: Enhanced Vendor Risk Assessments.”

Create a clear security policy encompassing SaaS apps

Your security policy must capture the complexities of SaaS app use. It should reflect access control policies, least privilege enforcement, and user provisioning and deprovisioning across the app landscape. Policies should also encompass:

• Risk-based authentication

• SSO (single-sign-on) 

• MFA (multi-factor authentication)

• Least privilege permissions

• Access reviews

• Vendor reviews

Deploy a modern governance layer to ensure robust access control

Cybercriminals target the weakest part of a system, which is often the entry point — user login. Robust access control management is an essential aspect of SaaS risk management. A modern IGA platform provides the functionality needed to ensure you can enforce the principle of least privilege. That is, privileged users should have access that reflects only what they need to do their job, and no more. IGA platforms also allow users to be easily deprovisioned as they leave an organization, ensuring that access to company apps is no longer available.

Eliminate shadow IT and make apps visible

Shadow IT is challenging to manage and brings risks into the heart of an organization.  But with a Modern IGA system, like AccessOwl, shadow IT apps can be made visible. These next-gen SaaS app management and governance tools provide a centralized "single-source-of-truth" — capturing rogue apps, entering them into a register, and ensuring they become sanctioned. This shadow IT registration tracks app usage, to prevent IP and other sensitive company data from being shared improperly.

Automate access request workflows

Access requirements are fluid, and employees often need to request access rights to varying apps. To maintain productivity while ensuring security, use a platform that provides SaaS management and access governance to automate access request and approval workflows. Automating provisioning and deprovisioning helps reduce the risks associated with SaaS app access — especially when employees leave an organization or vendor partnerships change.

Carry out internal risk assessments

Perform regular risk assessments of your SaaS app environment. You may need to update policies to represent new attack vectors or threat types. Risk audits should look for security gaps and any potential misconfiguration of apps and access rights. Regular risk assessments can also identify gaps in authentication, like missing MFA policies.

SaaS risk management and compliance

SaaS risk management is a critical aspect of many data regulations. The data stored, created, and shared using SaaS apps is governed by requirements of many standards and regulations worldwide. IT security standards and regulations like SOC 2, ISO27001, GDPR, and HIPAA have strict data-access regulations. Ensuring that SaaS apps are managed effectively minimizes the risk of data leaks, theft, and exposure — facilitating compliance with such standards and regulations.