Shadow IT refers to the use of unauthorized applications and devices within an organization. It poses several implications, including security risks, as unmonitored systems may expose sensitive data to cyber threats. Additionally, the lack of control can lead to compliance issues, potentially violating regulations. Organizations may also experience inefficiencies when integrating these unauthorized tools with existing systems. Ultimately, shadow IT can harm productivity, as employees may rely on unsanctioned tools instead of approved resources. To mitigate these risks, it's essential for managers to foster a culture of communication about IT needs and to implement policies that accommodate required functionalities while maintaining security.