MIT Sloan Management Review Article on Are You Managing Your Risks From Social Media?

Many organizations aren’t fully aware of the risks posed by social media or taking enough steps to minimize them.

Social media platforms are invaluable for connecting companies with their customers, the financial community, and the media. Sharing information on social media can reduce the information asymmetry between companies and their stakeholders in a timely manner. However, several factors, including a lack of planning, controls, and training, combined with the unpredictability of online behavior, can expose companies to considerable risk. Our research found that company managers and internal auditors lack sufficient awareness of these risks and should take a more active role in regulating and monitoring social media activity.