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Archive for February, 2010

How To Address Social Media Risks

21st February
written by luppens

Ok so now you know that every company is guilty by association when it comes to social media.  You have accepted that your company is exposed to some sort of risk.  So now, what do you do to start addressing that risk?  There are a lot of boiler plate policies and procedures out there, but every company is it’s own customized entity.  To begin, you need to determine to what extent your company is participating in social media, both internally and externally and your key risk factors.  Some thoughts on typical key risk factors are reputation, financial, liability etc.  External participation is probably the easiest to see and evaluate and may give you the biggest bang for your buck so to say because your external information is hopefully comprised of both employee correspondence and external evaluations such as financial analysts, newspapers, and customers.  I say hopefully, because if you are not finding employee correspondence, then either you aren’t looking hard enough or your employee demographics may not be prone to communications via social media and this could be a problem in itself.

Here are some easy steps to see what your external participation is

Google your Company
Google your industry
Set up key word searches on Google on all sorts of media
Set up key word searches in Twitter
Go to sites like Yahoo Finance and read through the blog posts

Log as much information as you can over a period of time.  A good time do this if you are publically traded might be a quarter or year end, or a recent release of new products as well as time that there is a minimal amount of activity happening.

Categorize the information you are seeing into employee correspondence (financial, personal, liability, reputation) external evaluations using the same categories you used for your internal.  Each of your categories need to be evaluated on a risk basis of likelihood and impact.  Likelihood is to be defined as the probability that the event will occur and impact is the amount it would impact your risks financially, professionally, and the speed of onset.  As these increase so does your risk.

Ok, now that your eyes have glazed over with confusion, I will let you consider what I have written to absorb it all.  We’ll talk about internal social media analysis strategy soon, but I think we are off to a great start!

Tags: social media risksInternal Auditing, Internal Risk Management, Social Media Policy, Uncategorized

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