ICAEW.com works better with JavaScript enabled.

Risk management - Socially acceptable

Social media is vital to business – but there are pitfalls too. James Leavesley highlights five risk areas to bear in mind when planning a corporate strategy.

Social media is rapidly moving up the risk register and impacting on every part of an organisation. A spate of high-profile cases played out in the media – Vodafone, HMV and American Airlines to name just a few – have made the boardroom sit up and take note of the risks. 

So what should every finance director know about shaping governance around social media? 

Theft of company data and intangible assets 

There have been several examples of popular Facebook pages and Twitter profiles being lost when an employee leaves or worse ‘stolen’ when an employee is poached by a competitor. A page with thousands of fans provides a very valuable contact data list. Corporate risk compliant social media management tools give employees access through a secure dashboard with tiered security access to ensure that the assets can be locked down quickly and securely and people removed when they leave an organisation. 

This is an extract from the Finance & Management Magazine, Issue 225, October 2014. 

Find out more 

Members 

Full article only available to Finance and Management Faculty members and Faculties Online subscribers. 

Non-members 

To read the complete article, join the Finance and Management Faculty and get access to this article in full, plus all future publications, events and services as well as our comprehensive archive of material.