Is Your Tool Stack Safe? A Guide to SaaS Security and Compliance

Think your SaaS stack is secure? According to recent industry data, the average company uses over 130 SaaS apps—many of them unknown to IT or security teams. Between shadow IT, loose access controls, and a patchwork of integrations, your business could be more exposed than you realize. In this guide, we'll help you evaluate the real risks in your tool stack and show you how to lock it down—without slowing your team down.

What Makes a SaaS Stack Vulnerable?

Your SaaS stack likely includes dozens of tools, each one a potential entry point for risk. The most common vulnerabilities include:

Shadow IT: Tools adopted without IT or security approval

Over-permissioned accounts: Too many users with admin or unrestricted access

Insecure integrations: APIs and webhooks with poor security or outdated scopes

Lack of vendor vetting: SaaS tools without SOC 2, ISO 27001, or GDPR alignment

Data sprawl: Sensitive data scattered across platforms with little oversight

Each of these issues can expose your company to data breaches, compliance failures, and financial loss.

The Hidden Cost of Shadow IT

When employees adopt tools outside the approved stack, they might not realize the risks they introduce. Shadow IT leads to:

Untracked data sharing

Unpatched or abandoned tools

Increased compliance risk under GDPR, CCPA, and others

Teams need visibility into every app in use—not just the ones on finance reports.

Security and Compliance Standards to Know

Not all SaaS tools are built with security in mind. Before approving a vendor, check if they meet standards like:

Compliance Standard	Purpose
SOC 2	U.S.-centric audit framework focusing on trust principles (security, availability, confidentiality, processing integrity, and privacy)
ISO 27001	Global information security management system (ISMS) framework with broad organizational scope
GDPR	Protects EU citizens' personal data; requires data minimization, portability, consent, and breach reporting
CCPA	California's consumer privacy law that regulates data collection and access rights
HIPAA	Health data protection law in the U.S. applicable to covered entities and business associates

If your vendor can’t speak to any of these, it’s a red flag.

How to Audit Your SaaS Tool Stack

Auditing your SaaS stack can feel overwhelming, but it doesn’t have to be. Here's how to break it down into manageable steps:

Inventory Every Tool: Start with a complete list of all SaaS applications your company uses. Pull from SSO logs, expense management software, and conduct team surveys to catch tools acquired through shadow IT.

Review Access and Permissions: Look into who has access to what. Ensure permissions follow the principle of least privilege—users should only have the access they need.

Map Data Flows: Identify what data each tool accesses or stores. Pay special attention to tools touching sensitive data (e.g., customer PII, financials, health info).

Evaluate Vendor Security: Check if your vendors are compliant with security standards like SOC 2, ISO 27001, or GDPR. Look for evidence such as reports, whitepapers, or trust pages. Make sure the tool includes robust security controls like data encryption (at rest and in transit), support for HTTPS, SSO, and MFA. Review their uptime SLAs, backup and recovery policies (part of a broader Business Continuity Plan), and how they handle access control (e.g., RBAC and audit logs). Also ensure that vendors provide clear data portability options—such as full data export and deletion—so you’re never locked in.

Assess Integrations: Review connected tools, APIs, and webhooks. Are they secure? Are API scopes too broad? Are unused integrations still active?

Establish Governance Policies: Create clear guidelines for how new tools are approved, reviewed, and onboarded. Assign ownership to IT/security teams.

Monitor Continuously: Set up periodic audits, implement alerting for new tool adoption, and consider tools that provide real-time visibility into SaaS usage (e.g., CASBs or SaaS Management Platforms).

This kind of structured audit helps ensure your stack remains secure, compliant, and under control.

How to Vet New SaaS Vendors

Before bringing in a new tool, ask:

Does it support SSO and MFA?

Are data centers located in compliant jurisdictions?

Can they provide recent SOC 2/ISO reports?

What is the process for incident response?

How do they manage API access and scopes?

A great tool will be transparent. A risky one will avoid your questions.

The Role of APIs and Integrations

Integrations can either centralize your security—or unravel it. Watch for:

Overly broad API scopes (e.g., full read/write access when read-only is fine)

Insecure webhook URLs

Lack of access logging

Every connection is a doorway. Make sure you know which ones are open.

Who Owns Stack Security: IT, Security, or Ops?

This isn’t just a security team's job. Your SaaS stack sits at the intersection of:

IT: Manages access, provisioning, and system controls

Security: Reviews vendor risk, policies, and compliance

Ops/Finance: Monitors tool usage and spend

Ultimately, every team lead should take ownership of how their tools are used securely, from access control to responsible data handling. Even individual employees should be aware of their role in maintaining a secure environment—whether it's using MFA, avoiding unapproved tools, or reporting suspicious behavior.

A cross-functional approach is essential to avoid gaps.

Instant Wins: What You Can Fix Today

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Looking to reduce risk and simplify your stack? Check out our Tool Consolidation Checklist to identify redundant tools and make smarter decisions about what to keep, replace, or retire.

Want quick wins? Start here:

Enable MFA across every tool

Remove unused accounts and revoke outdated API keys

Require approval for new tool onboarding

Centralize authentication (SSO)

Run a quarterly SaaS access review

These steps can drastically reduce your attack surface without a full overhaul.

Regional Considerations: Europe vs. U.S.

While the core principles of SaaS stack security are universal, regional regulations can impact your approach:

In Europe (EU/EEA):

GDPR compliance is mandatory for tools processing EU personal data.

Data residency laws may require vendors to store data within EU borders.

Standard Contractual Clauses (SCCs) and Data Processing Agreements (DPAs) are often needed.

In the United States:

Security standards vary by state and industry (e.g., CCPA, HIPAA, GLBA).

Data transfer and storage laws are generally more flexible.

Companies often rely on SOC 2 and ISO 27001 to demonstrate compliance.

Your region influences not only what standards apply, but also how vendors must prove compliance. Always align your stack strategy with local laws and your customer base.

Conclusion: Secure Your Stack Before It Secures You

It’s easy to overlook the sprawl of your SaaS tools—until it becomes a security incident. Taking proactive steps to audit and lock down your stack helps protect your data, your users, and your brand.

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