Companies in every industry are using social media networks such as Facebook, Twitter and LinkedIn as marketing and business development tools. These networks not only provide innovative ideas and marketing strategies to engage prospects and customers, but can be beneficial as they are a free source of constant information and an instantaneous form of communication. However, there are risks associated with the benefits of this new way of communicating. Organizations must be prepared to mitigate technology related threats that are now ranked among the top sources of risk affecting businesses across the globe. These risks and unintended consequences are infinite and can include predicaments such as regulatory liabilities, data theft, fraud, reputational damage, employment related issues and inappropriate employee conduct. All of these can negatively impact a company’s bottom line.
A recent article in the Journal of Accountancy references one of the most serious risks associated with social media – reputational damage from data breaches. The article provides a check list of steps an organization can take to implement risk controls and security measures. Another way for companies to protect themselves is to purchase adequate insurance coverage. Taking all of these precautions can help reduce an organization’s Total Cost of Risk (TCoR), therefore lowering possible exposures resulting in lower insurance premiums.
An independent insurance consultant can not only help ensure you have adequate coverage, but provide senior management with the transparency needed to implement risk mitigation strategy before a crisis occurs. To learn more about the essential steps needed to protect your business in this social media era, contact Albert Sica at 732.395.4251 or at firstname.lastname@example.org.