Sites like Wikileaks and Firm Spy pose an ongoing, increasing risk to organisations of all types and sizes. Whilst a lot of the discussion has been around brand damage and the need to establish internal policies or guidelines, it’s time for the discussion to broaden – to the Boardroom.
Given we’ve seen a fundamental shift in communication models, behaviours, and how we use the internet I believe it’s time for company Directors to start thinking of social media as an issue that needs to be included in their risk management plans.
Company directors are expected to be financially literate – a point I touched on recently. I think its time they were also literate in their understanding of social media and the broad issues that can and do arise:
- Brand damage
- Sensitive data leakage (either intentional or otherwise)
- Compliance with ASIC or other market standards
- Enforcement
- HR and Legal risks
One of the key risks that I can see emerging for Directors is whether shareholders will consider it enough that there is a set of policies or guidelines in place? What risks need to be addressed? How do manage compliance and audit needs?
Social media isn’t going away and nor is it a free-for-all. What do you think? How should a company Director manage this?
