Social networking policy essential to limit risk to businesses

Companies now use social networking sites for a wide variety of functions - recruitment and business networking (LinkedIn), brand awareness and loyalty (Facebook/Twitter/YouTube) and keeping tabs on reviews and performance (Yelp).

However, many of those companies don't consider the risks associated with social networking activity before launching themselves into the space.

Risks recently identified by commissum include:

- Vulnerability of IT infrastructure from malicious software downloaded from social networks
- Involuntary disclosure of sensitive business information
- Negative or unfair criticisms in a public arena that rivals could use to their advantage.

"The risks of using social media encompass all aspects of the business; legal, employment, technical, operational and reputation", said a commissum spokesperson.

Businesses also need to consider employee behavior on social networks and the effect that can have on reputation, or perhaps legal repercussions.

Of course, many of the business risks associated with social networking strategies can be dealt with by formulating an explicit social networking policy.

New media expert and author, Brian Solis, this week published a comprehensive best practice list for those putting together such a policy.

"It is paramount that every company, regardless of size, industry, or location, immediately draft and circulate guidelines and policies - whether or not social media is practiced officially or unofficially within the organization," writes Solis.

"The larger the company the greater the imminent risk and drafting policies and providing the training necessary to representatives and employees alike, will prevent unwanted details from spreading. Accordingly, it will encourage the propagation of desirable information."

Tags: company policy, social media, social networks