istrategy chicago conference 2012 - social media risks vs. rewards

Social Media Risks Vs. Rewards

Understanding and avoiding risks in order to achieve rewards for your brand in social media.

Slide 2

Agenda

Confidential

Introductions

Social Media Risk Concepts

Tackling Risk

Technology Recommendations

Conclusion

Slide 3

Why Care?

Confidential

Handle objections to social investment

Protect your investment

Protect your audience

Save time – resource – money

Don’t be a headline - Reduce crises that impact your brand and your team

Slide 4

Social iQ Networks Introduction

Confidential

Who – ◦ Experienced Enterprise Software & Security Professionals

What – ◦ Solution to discover, audit, and protect brand social accounts

How –◦ Secure, SaaS-based product

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Social Media: Balancing Opportunity With Risk

Alan WebberPrincipal Analyst@AlanWebber

© 2012 Altimeter Group

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Altimeter Group is a research-based advisory firm that

helps companies and industries leverage disruption to

their advantage.

Visit us at http://www.altimetergroup.com or contact

info@altimetergroup.com.

ABOUT US

© 2012 Altimeter Group

Pandora’s box 7

Used under a Creative Commons license from Christian Botha via Flickr at http://www.flickr.com/photos/23497519@N06/3868128009/

© 2012 Altimeter Group

Social media crises are on the rise8

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What can happen…9

March 6, 2012: “Dinner w/Board tonite. Used to be fun. Now one

must be on guard every second.”

March 7, 2012: “Board meeting. Good numbers=Happy Board.”

March 10, 2012: “I am logging off Twitter now because co-

workers are looking at me as I'm laughing.”

© 2012 Altimeter Group

Understanding the risks

Putting social media risk management in place

Next steps

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Agenda

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Key types of risk

Reputation

Identity Theft

Legal, Regulatory & Compliance

Confidential Info

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Key types of risk

Reputation

Identity Theft

Legal, Regulatory & Compliance

Confidential InfoInternal

External

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Reputation is the highest risk13

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Every platform is a source of risk14

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Facebook is the riskiest15

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The IAME model16

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Step 1: Identify the risks17

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Reputational

Regulatory and compliance

Legal and privacy

Operational

Four types of risk18

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Organizational reputation risk

Damage to the brand reputation

Results in a loss of trust and credibility

Can lead to other significant losses

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Kenneth Cole receives mass backlash for insensitive #Cairo tweet and quickly retracts

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But not before spoof PR Twitter account is created and bad press spread with hashtag

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Regulatory and compliance risk

Violations of government and regulatory agency rules and and guidelines

Primary result is financial penalty or similar government imposed sanction

Can lead to reputation degradation

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Novartis gets slapped by FDA

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Legal and privacy risk

Result in the organization failing to take a necessary action that results in harm

Often these are privacy issues or release of confidential information

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Operational risk

Can compromise the operations and security of an organization

Includes

• Reduced employee productivity

• Release of IP

• Malware

• Social engineering

• Digital business continuity

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How to identify potential risks26

Review historical activities

What are you hearing

Learn from others

Create a social media risk library

Review the risks of new activities

Look at platform shifts

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Step 2: Assess the risks27

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Companies don’t assess their social risk28

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BofA fee debacle: what happened?29

How this

Led to this

Which ledto this

Sources: TIME, New York Times

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BofA fee debacle: Twitter exploded30

There was so much buzz that “Debit card fees” was a trending topic

Source: Huffington Post, “Bank Of America Debit Card Fees: Twitter Reacts”

© 2012 Altimeter Group

BofA fee debacle: a real business impact31

In a TIME poll, 75% of nearly 1,000 Bank of America customers said they’d switch banks.

According to J.D. Power’s director of banking services, roughly two-thirds of people who say that they plan to switch banks actually do so.

The bank’s stock dropped by more than 3.5 percent the day after the fees were announced.

Source: TIME, “Bank of America Backlash: Consumers React to Debit Card Fee”

© 2012 Altimeter Group

Assessing a social media risk32

Component Subcomponent

Likelihood Catalyst

Opportunity

Motive

Impact Reputation

Availability

Legal/Compliance

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Four steps to assess a risk33

1. Rate the likelihood

2. Rate the potential impact

3. Rank the risks

4. Prioritize efforts and resources

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Scoring the social risk34

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Step 3: Mitigate and manage35

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1. Understand how to make decisions

2. Put governance in place

3. Staff with dedicated resources

4. Put the right policies in place

5. Train employees on boundaries

6. Deploy necessary tools

Six steps to social media risk mitigation36

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Have a decision making structure37

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Have a governance model established38

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Social Media Risk Mgt.

Marketing

Human Resources

Legal and Compliance

IT and IS

Comms and PR

Security and Risk Mgt

All the right components of the organization need to be included

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Have the right policies40

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Define expectations for associates with an internal Social Media Policy

Examples of Social Media Guidelines created by Intel and Cisco

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And make sure they are up to date42

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Train employees on the boundaries43

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Listening and Monitoring

SMMSSocial Media

Compliance

Put the right tools in place44

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Step 4: Monitor and evaluate45

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Listen and learn

Review mitigation efforts and strategies when

• Entering a new channel

• Emergence of a new technology

• Identification of a new threat

Go back to start

Putting evaluation in place46

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1. Make social media risk a board issue

2. Learn from past crises

3. Review your own responses

4. Test your ability to respond

Next steps:47

Slide 48

Technology Tips – Account Guardrails

① Address Account SprawlInventory & Audit Your Brand Accounts

② Protect / Lock Account AccessWhich admins

What Publishing Apps (never just 1)

What known good profile

③ Compliance, Security, and AUP PoliciesAuto-moderation for bad / dangerous content

Enforce policies regardless of publishing app

Use incident notification, archiving, and remediation for posts, comments, tweets, etc.

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© 2012 Altimeter Group

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THANK YOU

Alan Webberalan@altimetergroup.com

roninresearch.org

Twitter: alanewebber

Devin Redmond

devin@socialiqnetworks.com

socialiqnetworks.com

@SocialiQNet