Today many companies understand the value that social media tools bring to an organization, including enhanced enterprise communication and customer engagement. But while social media generates many benefits in modern business, it also exposes companies to a great deal of risk. Your organization must develop a risk-sensitive strategy to create an effective ethics and compliance program for your social media efforts. It’s important to understand not only what social media risk is, but also what action should be taken to effectively respond to these risks.
The average cost of a single social media risk incident is #3.5 million, according to a report by Blue Hill Research. These incidents can lead to brand erosion, direct financial costs, legal exposure, regulatory penalties and litigation costs.