In a litigious and careful corporate age most businesses are aware of the need for proper governance and strive toward a best practice paradigm that reduces risk.
When social media entered the equation the game changed. Many businesses have introduced social media into their promotional mix but with mixed feelings as they recognise there is a balance between the gains promised by social media and risks that may arise from a less controlled unfiltered interface with the outside world.
Some have not jumped into social media due to concerns about potential privacy breaches; concern for their corporate brand and reputation, as well as fear of legal action from a yet unknown quarter. Yet in parallel the inexorable pull of the digital economy means even conservative organisations are coming out to play on social media. This of course varies by industry sector. However, even business and organisations that have fully embraced digital such as retail must consider its exposure to risk.
You could argue that social media has opened the Pandora’s Box of human communications. With regulation on privacy and inappropriate content just managing to provide an overlay of civility over the internet, in essence it’s still a pretty laissez faire environment.
In many ways the digital realm encourages risky behaviour as it removes the moderating influence that is still present in most face-to-face human encounters, particularly in business. It also encourages spontaneous communication that is facilitated by a very speedy mode of delivery.
This is a recipe for a lot of risky interchanges and not just in our personal lives!
Implications for Business
What does this mean for the risk management strategy of businesses engaged online? The main concerns of social media within the business setting are privacy, employee behaviour (loyalty) and confidentiality.
The conditions are all there for human error to play a part. A key element is the false sense of privacy that comes with communicating directly with another person online. Throw in the need to respond quickly which is inherent in social media and it’s not hard to imagine how something can go wrong.
Plus there is plenty of scope for unintentional harm to be done to a business in the rush of online communications, consider:
- Blurred boundaries between business and private lives
- Inadvertent release of information that misinforms or misleads
- Confidential or embargoed corporate information/knowledge divulged
- IT exposure over mobile devices which may not be fully secured
- Reactive or outdated risk management policies that don’t take into account current digital economy realities
- Overly restrictive policies that risk being circumvented by staff who are under time pressure to respond online
Without a proper risk management strategy for social media businesses will be increasingly exposed as more of their processes leverage this channel.
The solution must be multi-disciplinary and should involve all aspects of the business including:
- Upper management
- IT
- Legal/compliance
- Finance
- Marketers
Exactly how to deal comprehensively with the corporate risks social media poses is beyond the scope of this article. However, it is important to understand the nature of the risks to start adding social media to your risk management portfolio.
Fatpublisher provides social media services to our clients. If you are interested in finding out about our social media packages, please contact us.
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