AI Governance Institute
← All news

SaaS Risk

SaaS risk refers to the security, privacy, and compliance exposures created when employees or business units adopt software-as-a-service tools, often AI-enabled ones, without formal review by IT, security, or legal. Shadow adoption of this kind can send confidential data, customer records, or regulated information to third-party vendors whose data handling, retention, and training practices the organization has never vetted. For governance teams, managing SaaS risk means maintaining an inventory of approved and unapproved tools, reviewing vendor contracts for data use terms, and setting clear rules on what information can be entered into external platforms.

1 item