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Title:	
  Mapping	
  Organizational	
  Roles	
  &	
  
Responsibilities	
  for	
  Social	
  Media	
  Risk	
  
Subtitle:	
  How	
  to	
  Define	
  and	
  Implement	
  Organizational	
  Roles	
  and	
  
Responsibilities	
  for	
  Enterprise	
  Social	
  Media	
  Risk	
  Management	
  
	
  

	
  

	
  

1	
  
Executive	
  Summary	
  
Social	
  media	
  has	
  introduced	
  a	
  wide	
  array	
  of	
  opportunities	
  for	
  organizations	
  to	
  engage	
  
with	
  customers	
  and	
  partners.	
  	
  Marketers	
  have	
  been	
  tasked	
  with	
  capitalizing	
  on	
  these	
  
opportunities.	
  	
  But	
  with	
  these	
  opportunities	
  comes	
  risks	
  –	
  like	
  a	
  damaged	
  brand	
  
reputation,	
  regulatory	
  violations,	
  privacy	
  issues,	
  intellectual	
  property	
  compromises,	
  
social	
  engineering,	
  Astroturf-­‐ing,	
  phishing,	
  and	
  the	
  list	
  goes	
  on.	
  	
  What	
  is	
  less	
  clear	
  is	
  
who	
  is	
  responsible	
  for	
  managing	
  and	
  mitigating	
  the	
  risks	
  tied	
  to	
  social	
  media.	
  	
  
	
  
To	
  get	
  optimal	
  value	
  from	
  social	
  media	
  efforts,	
  organizations	
  need	
  to	
  establish	
  
controls	
  for	
  the	
  downsides	
  of	
  the	
  technology	
  by	
  first	
  clearly	
  defining	
  which	
  roles	
  
within	
  their	
  unique	
  corporate	
  structure	
  should	
  be	
  involved	
  in	
  social	
  media	
  risk	
  
management	
  and	
  their	
  specific	
  responsibilities.	
  	
  Organizations	
  then	
  need	
  to	
  give	
  
those	
  roles	
  the	
  proper	
  tools,	
  such	
  as	
  policies	
  and	
  technologies,	
  to	
  be	
  successful	
  at	
  
identifying,	
  managing,	
  and	
  mitigating	
  social	
  media	
  risks.	
  	
  This	
  report	
  will	
  outline	
  a	
  
framework	
  for	
  assigning	
  roles	
  and	
  responsibilities	
  to	
  manage	
  social	
  media	
  risk.	
  
	
  

	
  

	
  

2	
  
Social	
  Media	
  Is	
  Opening	
  New	
  Opportunities…	
  And	
  Risks	
  
Whether	
  it	
  is	
  a	
  Facebook	
  page,	
  a	
  Twitter	
  stream,	
  a	
  Tumblr	
  blog,	
  a	
  Pinterest	
  page,	
  or	
  
another	
  social	
  channel,	
  consumers	
  are	
  jumping	
  on	
  the	
  social	
  media	
  bandwagon.	
  	
  For	
  
example,	
  it	
  was	
  reported	
  that,	
  on	
  Facebook	
  alone,	
  there	
  were	
  1.15	
  billion	
  monthly	
  
active	
  users	
  with	
  819	
  million	
  views	
  via	
  some	
  kind	
  of	
  mobile	
  device.i	
  	
  Twitter	
  has	
  
approximately	
  500	
  million	
  users	
  with	
  more	
  than	
  200	
  million	
  identified	
  as	
  active.ii	
  	
  
Video	
  platform,	
  YouTube,	
  has	
  over	
  a	
  billion	
  unique	
  users	
  every	
  month.iii	
  	
  The	
  most-­‐
visited	
  consumer	
  social	
  networks	
  include	
  well-­‐known	
  platforms	
  like	
  Facebook,	
  
Twitter,	
  Foursquare,	
  Pinterest,	
  and	
  Tumblr,	
  along	
  with	
  lesser	
  known,	
  but	
  growing,	
  
platforms	
  like	
  Pheed,	
  Thumb,	
  and	
  Vine.	
  

Social	
  Adoption	
  in	
  Organizations	
  Is	
  Maturing	
  
No	
  brand	
  wants	
  to	
  be	
  too	
  far	
  away	
  from	
  their	
  customers,	
  so	
  companies	
  are	
  working	
  
diligently	
  to	
  meet	
  consumers	
  where	
  they	
  are,	
  on	
  social	
  media	
  platforms.	
  	
  Today,	
  more	
  
than	
  79%	
  of	
  all	
  companies	
  are	
  using,	
  or	
  are	
  in	
  the	
  process	
  of	
  adopting,	
  one	
  or	
  more	
  
social	
  media	
  channels	
  as	
  a	
  primary	
  conduit	
  to	
  their	
  customers.iv	
  	
  Many	
  of	
  these	
  
companies	
  are	
  experiencing	
  great	
  success,	
  like	
  iconic	
  brands	
  Walmart,	
  Target,	
  and	
  
Amazon	
  (see	
  Figure	
  1).v	
  	
  Their	
  efforts	
  are	
  spread	
  across	
  channels,	
  with	
  77%	
  of	
  the	
  
Fortune	
  500	
  using	
  Twitter,	
  70%	
  employing	
  Facebook,	
  and	
  69%	
  on	
  YouTube.	
  	
  What	
  
are	
  companies	
  using	
  social	
  media	
  for?	
  	
  59%	
  use	
  it	
  to	
  engage	
  with	
  their	
  customers,	
  
49%	
  to	
  advertise,	
  35%	
  to	
  conduct	
  research	
  on	
  their	
  customers,	
  and	
  30%	
  to	
  conduct	
  
research	
  on	
  competitors	
  and	
  new	
  products.vi	
  
	
  
Figure	
  1:	
  	
  Connecting	
  with	
  Customers	
  on	
  Social	
  Media	
  

	
  
	
  

3	
  
Social	
  Media	
  Is	
  Also	
  Exposing	
  Brands	
  to	
  Risk	
  
For	
  all	
  of	
  its	
  amazing	
  upsides	
  for	
  companies,	
  such	
  as	
  being	
  able	
  to	
  directly	
  interact	
  
with	
  customers,	
  there	
  is	
  also	
  an	
  ugly	
  underside	
  to	
  social	
  media	
  –	
  the	
  risks	
  to	
  
companies	
  from	
  social	
  media.	
  	
  Whether	
  it	
  is	
  damaging	
  the	
  reputation	
  of	
  a	
  company,	
  
releasing	
  of	
  confidential	
  information,	
  regulatory	
  and	
  compliance	
  risks,	
  or	
  identity	
  
theft,	
  social	
  media	
  comes	
  with	
  its	
  own	
  set	
  of	
  risks	
  based	
  upon	
  the	
  unique,	
  highly	
  
interactive,	
  complex,	
  and	
  almost	
  uncontrollable	
  nature	
  of	
  the	
  interactions.	
  	
  The	
  
manifestation	
  of	
  social	
  media	
  risk	
  can	
  be	
  as	
  low-­‐level	
  as	
  an	
  unsatisfied	
  customer	
  
tweeting	
  to	
  someone,	
  to	
  as	
  extreme	
  as	
  the	
  $200	
  billion	
  of	
  value	
  that	
  was	
  erased	
  from	
  
the	
  U.S.	
  stock	
  markets	
  after	
  a	
  fraudulent	
  tweet,	
  supposedly	
  from	
  the	
  Associated	
  Press,	
  
was	
  sent	
  out	
  about	
  an	
  explosion	
  at	
  the	
  White	
  House.vii	
  

Who	
  Does	
  What,	
  and	
  Who	
  Pays	
  for	
  It?	
  
Social	
  media	
  is	
  a	
  new	
  channel	
  with	
  new	
  ways	
  of	
  interacting	
  and	
  new	
  risks	
  that	
  
prompt	
  the	
  question	
  –	
  who	
  is	
  responsible	
  for	
  managing	
  the	
  risks?	
  	
  For	
  example,	
  the	
  
CIO,	
  if	
  the	
  company	
  has	
  one,	
  is	
  the	
  person	
  responsible	
  for	
  managing	
  IT	
  risks	
  like	
  
hardware	
  downtime,	
  and	
  stopping	
  hackers.	
  	
  When	
  it	
  comes	
  to	
  managing	
  financial	
  
risks,	
  like	
  regulatory	
  changes,	
  fraud	
  and	
  interest	
  rate	
  changes,	
  it	
  is	
  pretty	
  clear	
  that	
  the	
  
CFO	
  should	
  be	
  responsible	
  for	
  ensuring	
  that	
  those	
  types	
  of	
  risks	
  don’t	
  significantly	
  
affect	
  the	
  company.	
  	
  But	
  who	
  is	
  responsible	
  for	
  managing	
  social	
  media	
  risk?	
  

Roles	
  with	
  an	
  Interest	
  in	
  Social	
  Media	
  Risk	
  Management	
  
With	
  the	
  unique	
  nature	
  of	
  social	
  media,	
  responsibility	
  for	
  managing	
  and	
  mitigating	
  
social	
  media	
  risk	
  is	
  often	
  spread	
  across	
  numerous	
  departments.	
  	
  That	
  responsibility	
  is	
  
also	
  typically	
  spread	
  across	
  a	
  number	
  of	
  corporate	
  functions,	
  including	
  Marketing,	
  IT,	
  
Communications,	
  Legal,	
  Audit,	
  Risk,	
  and	
  Human	
  Resources.	
  
	
  
The	
  best	
  way	
  for	
  companies	
  to	
  align	
  organizational	
  responsibility	
  and	
  governance	
  is	
  
to	
  break	
  it	
  down	
  by	
  three	
  levels	
  –	
  titles,	
  roles,	
  and	
  responsibilities	
  across	
  seven	
  
necessary	
  functional	
  areas	
  as	
  follows:	
  
Marketing	
  and	
  Communications	
  Management	
  
Representative	
  Titles:	
  	
  Chief	
  Marketing	
  Officer,	
  Vice	
  President	
  of	
  Marketing,	
  
and	
  Vice	
  President	
  of	
  Corporate	
  Communications.	
  
Role	
  Level:	
  	
  Strategic.	
  	
  
Social	
  Media	
  Responsibilities:	
  	
  Generally	
  serves	
  as	
  executive	
  sponsor	
  or	
  
executive	
  owner	
  of	
  social	
  media	
  initiatives	
  within	
  an	
  overall	
  marketing	
  and	
  
brand	
  management	
  effort.	
  	
  Accountable	
  to	
  the	
  Board	
  of	
  Directors	
  and	
  
executive	
  team	
  for	
  the	
  success	
  and	
  failure	
  of	
  social	
  media	
  efforts,	
  including	
  
	
  
4	
  
social	
  media	
  activity	
  and	
  brand	
  presence,	
  return	
  on	
  investment,	
  and	
  any	
  
associated	
  crises.	
  
Key	
  Social	
  Media	
  Risk	
  Concerns:	
  	
  Brand	
  and	
  image	
  protection,	
  reputation	
  
management,	
  and	
  regulatory	
  compliance	
  for	
  Marketing.	
  	
  
Information	
  Technology	
  
Representative	
  Titles:	
  	
  Chief	
  Information	
  Officer	
  and	
  Chief	
  Information	
  
Security	
  Officer	
  
Role	
  Level:	
  	
  Strategic.	
  	
  
Social	
  Media	
  Responsibilities:	
  	
  Generally	
  serves	
  as	
  executive	
  co-­‐sponsor	
  or	
  
co-­‐owner	
  of	
  social	
  media	
  initiatives	
  and	
  efforts	
  within	
  the	
  context	
  of	
  an	
  overall	
  
information	
  technology	
  architecture	
  and	
  an	
  overall	
  security	
  architecture.	
  	
  
Accountable	
  to	
  the	
  Board	
  of	
  Directors	
  and	
  Chief	
  Executive,	
  in	
  conjunction	
  with	
  
the	
  CMO,	
  for	
  social	
  media	
  compliance,	
  privacy,	
  IP	
  and	
  company	
  information	
  
protection,	
  and	
  any	
  channel	
  breaches.	
  
Key	
  Social	
  Media	
  Risk	
  Concerns:	
  	
  Regulatory	
  compliance,	
  data	
  privacy	
  and	
  
security,	
  social	
  engineering,	
  data	
  management,	
  and	
  network	
  and	
  resource	
  
protection.	
  
Social	
  Media	
  Technology	
  
Representative	
  Titles:	
  	
  Chief	
  Technology	
  Officer,	
  Enterprise	
  Architect,	
  Digital	
  
Security	
  Manager,	
  and	
  Digital	
  Infrastructure	
  Manager.	
  
Role	
  Level:	
  	
  Strategic	
  to	
  tactical.	
  
Social	
  Media	
  Responsibilities:	
  	
  Select,	
  deploy,	
  and	
  standardize	
  social	
  media	
  
management	
  applications	
  and	
  tools,	
  social	
  media	
  account	
  management,	
  social	
  
media	
  policy	
  enforcement,	
  and	
  social	
  media	
  training.	
  
Key	
  Social	
  Media	
  Risk	
  Concerns:	
  	
  Social	
  media	
  account	
  security,	
  social	
  media	
  
privacy,	
  API	
  vulnerabilities,	
  standardization	
  of	
  risk	
  mitigation	
  efforts	
  across	
  
channels,	
  app	
  proliferation,	
  and	
  channel	
  proliferation.	
  	
  
Social	
  Media	
  Marketing	
  
Representative	
  Titles:	
  	
  Director/Manager	
  of	
  Social	
  Media,	
  Director/Manager	
  
of	
  Digital	
  Marketing,	
  Director/Manager	
  of	
  Corporate	
  Communications,	
  and	
  any	
  
agencies	
  with	
  social	
  media	
  responsibility.	
  	
  
Role	
  Level:	
  	
  Managerial.	
  	
  
Social	
  Media	
  Responsibilities:	
  	
  Responsible	
  for	
  day-­‐to-­‐day	
  management	
  of	
  
social	
  media	
  efforts	
  including	
  channel	
  management,	
  content	
  and	
  channel	
  
planning,	
  content	
  creation	
  and	
  approval,	
  channel	
  and	
  application	
  security,	
  

	
  

5	
  
social	
  analytics,	
  social	
  network	
  monitoring,	
  and	
  initial	
  issue	
  and	
  crisis	
  
identification	
  and	
  response.	
  
Key	
  Social	
  Media	
  Risk	
  Concerns:	
  	
  Internal	
  and	
  external	
  (fraudulent	
  or	
  
copycat)	
  channel	
  and	
  site	
  proliferation,	
  minimizing	
  operational	
  risks	
  through	
  
policies	
  and	
  training,	
  and	
  on-­‐channel	
  security	
  management.	
  
Social	
  Community	
  Management	
  and	
  Customer	
  Service	
  
Representative	
  Titles:	
  	
  Social	
  Community	
  Manager	
  and	
  Social	
  Customer	
  
Service	
  Manager	
  
Role	
  Level:	
  	
  Managerial	
  and	
  operational	
  
Social	
  Media	
  Responsibilities:	
  	
  Day-­‐to-­‐day	
  customer	
  interaction,	
  community	
  
management,	
  monitoring	
  of	
  the	
  community	
  and	
  brand	
  in	
  the	
  social	
  landscape,	
  
and	
  management	
  of	
  acceptable-­‐use	
  policies.	
  	
  
Key	
  Social	
  Media	
  Risk	
  Concerns:	
  	
  Poor	
  community	
  management,	
  
inappropriate	
  community	
  use,	
  customer	
  interactions,	
  customer	
  data	
  
management,	
  social	
  media	
  spam,	
  and	
  customer	
  issue	
  escalation	
  and	
  
intensification.	
  	
  
Legal	
  and	
  Audit	
  
Representative	
  Titles:	
  	
  Chief	
  Legal	
  Officer,	
  Chief	
  Compliance	
  Officer,	
  Chief	
  
Risk	
  Officer,	
  Compliance	
  Manager,	
  and	
  Audit	
  Manager.	
  
Role	
  Level:	
  	
  Strategic	
  to	
  operational	
  
Social	
  Media	
  Responsibilities:	
  	
  Regulatory	
  and	
  legal	
  compliance,	
  oversight	
  of	
  
social	
  media	
  policies	
  and	
  governance,	
  auditing	
  of	
  brand	
  accounts,	
  fraud	
  
identification	
  and	
  management,	
  ensuring	
  standardization	
  of	
  the	
  brand	
  and	
  
brand	
  compliance	
  across	
  social	
  networks,	
  identification	
  and	
  addressing	
  of	
  
brand	
  hijacking,	
  and	
  brand/reputation	
  management	
  and	
  protection.	
  
Key	
  Social	
  Media	
  Risk	
  Concerns:	
  	
  Brand	
  compliance,	
  including	
  internal	
  use,	
  
partner	
  and	
  affiliate	
  use,	
  and	
  community	
  use,	
  intentional	
  and	
  unintentional	
  
brand	
  hijacking,	
  and	
  erosion	
  of	
  brand	
  reputation.	
  
Human	
  Resources	
  
Representative	
  Titles:	
  	
  Chief	
  People	
  Officer	
  and	
  Director/Manager	
  of	
  Human	
  
Resources	
  
Role	
  Level:	
  	
  Strategic	
  to	
  operational	
  
Social	
  Media	
  Responsibilities:	
  	
  Employee	
  oversight,	
  training	
  on	
  social	
  media	
  
governance,	
  policies	
  and	
  tools,	
  and	
  management	
  of	
  internal	
  non-­‐compliance	
  
with	
  social	
  media	
  policies.	
  	
  

	
  

6	
  
Key	
  Social	
  Media	
  Risk	
  Concerns:	
  	
  Lack	
  of	
  employee	
  training	
  on	
  social	
  media	
  
policies	
  and	
  tools,	
  identification	
  and	
  correction	
  of	
  employee	
  actions	
  on	
  social	
  
media,	
  and	
  safety	
  of	
  employee	
  personal	
  use	
  of	
  social	
  media.	
  

Social	
  Media	
  Risk	
  Management	
  Responsibilities	
  
For	
  too	
  many	
  companies,	
  initial	
  social	
  media	
  efforts	
  are	
  haphazard	
  and	
  uncoordinated,	
  
yet	
  require	
  the	
  participation	
  of	
  multiple	
  roles	
  (see	
  Figure	
  2).	
  	
  While	
  Marketing	
  has	
  set	
  
up	
  a	
  Facebook	
  page	
  and	
  maybe	
  a	
  Twitter	
  feed,	
  Human	
  Resources	
  has	
  established	
  a	
  
presence	
  on	
  LinkedIn	
  for	
  recruiting,	
  and	
  individual	
  sales	
  reps	
  are	
  tweeting	
  away,	
  while	
  
IT	
  is	
  trying	
  to	
  lock	
  down	
  all	
  of	
  the	
  systems	
  to	
  protect	
  the	
  company.	
  	
  It	
  borders	
  on	
  the	
  
edge	
  of	
  pandemonium	
  and	
  it	
  exposes	
  the	
  brand	
  to	
  unnecessary	
  risk.	
  	
  
	
  

Effective	
  social	
  media	
  risk	
  management	
  requires	
  internal	
  coordination	
  across	
  
departments	
  and	
  groups	
  for	
  the	
  following:	
  
1) Agreeing	
  on	
  the	
  corporate	
  purposes	
  and	
  strategy	
  for	
  adopting	
  social	
  media	
  
channels	
  and	
  platforms;	
  	
  
2) Claiming	
  the	
  corporate	
  geography	
  on	
  the	
  different	
  social	
  media	
  channels;	
  	
  
3) Monitoring	
  access,	
  content,	
  and	
  applications	
  across	
  the	
  social	
  landscape;	
  	
  
4) Putting	
  together	
  and	
  executing	
  an	
  implementation	
  plan	
  for	
  the	
  strategy,	
  
including	
  a	
  crisis	
  communications	
  and	
  response	
  plan;	
  and	
  	
  
5) Following	
  up	
  on	
  the	
  execution,	
  including	
  success	
  metrics.	
  	
  	
  
	
  
None	
  of	
  these	
  can	
  happen	
  without	
  help	
  from	
  multiple	
  parts	
  of	
  the	
  organization.	
  	
  
	
  

	
  

7	
  
Figure	
  2:	
  	
  What	
  Roles	
  Should	
  Be	
  Involved	
  in	
  Social	
  Risk	
  Management?	
  

Marketing	
  &	
  Communications	
  
Managements	
  

• Chief	
  Marketing	
  Ofhicer	
  
• Vice	
  President	
  of	
  Marketing	
  
• Vice	
  President	
  of	
  Corporate	
  Communications	
  

Information	
  Technology	
  

• Chief	
  Information	
  Ofhicer	
  
• Chief	
  Information	
  Security	
  Ofhicer	
  

Social	
  Media	
  Technology	
  

• Chief	
  Technology	
  Ofhicer	
  
• Digital	
  Security	
  Manager	
  
• Digital	
  Infrastructure	
  Manager	
  

Social	
  Media	
  Marketing	
  
Social	
  Community	
  Management	
  &	
  
Customer	
  Service	
  

Legal	
  and	
  Audit	
  

Human	
  Resources	
  

• Director/Manager	
  of	
  Social	
  Media	
  
• Director/Manager	
  of	
  Digital	
  Marketing	
  
• Director/Manager	
  of	
  Corporate	
  Communications	
  
• Social	
  Media	
  Agency	
  

• Social	
  Community	
  Manager	
  
• Social	
  Customer	
  Service	
  Manager	
  
• Social	
  Media	
  Agency	
  
• Chief	
  Legal	
  Ofhicer
	
  
	
  Chief	
  Risk	
  Ofhicer	
  
• Chief	
  Compliance	
  Ofhicer	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Compliance/Audit	
  Manager	
  
• Chief	
  People	
  Ofhicer	
  
• Director/Manager	
  of	
  Human	
  Resources	
  

	
  
For	
  example,	
  agreeing	
  on	
  the	
  corporate	
  purposes	
  and	
  strategies	
  for	
  social	
  media	
  is	
  
primarily	
  a	
  function	
  of	
  marketing	
  or	
  corporate	
  communications.	
  	
  But,	
  as	
  social	
  media	
  is	
  
used	
  for	
  purposes	
  other	
  than	
  marketing,	
  such	
  as	
  a	
  customer	
  service	
  tool	
  or	
  a	
  recruiting	
  
tool,	
  the	
  Customer	
  Service	
  team	
  and	
  the	
  HR	
  team	
  need	
  to	
  be	
  involved	
  from	
  a	
  platform	
  
and	
  tool	
  selection	
  perspective,	
  and	
  IT	
  from	
  a	
  security	
  technology	
  view.	
  	
  	
  
	
  
The	
  monitoring	
  of	
  social	
  media	
  is	
  primarily	
  the	
  responsibility	
  of	
  the	
  social	
  media	
  team	
  
and	
  any	
  agency	
  support	
  they	
  utilize,	
  but	
  could	
  also	
  include	
  Customer	
  Service,	
  as	
  
customers	
  compliment	
  or	
  complain	
  about	
  the	
  brand	
  on	
  social	
  media.	
  	
  It	
  could	
  include	
  
market	
  research,	
  as	
  information	
  is	
  gleaned	
  about	
  customers.	
  	
  It	
  should	
  also	
  include	
  
risk	
  and	
  security	
  teams	
  as	
  social	
  media	
  provides	
  a	
  channel	
  for	
  spear-­‐phishing,	
  social	
  
engineering	
  and	
  other	
  risks.	
  Though	
  different	
  for	
  each	
  organization,	
  effective	
  social	
  
media	
  risk	
  management	
  requires	
  the	
  active	
  participation	
  of,	
  at	
  the	
  minimum,	
  
Marketing,	
  IT,	
  Legal,	
  and	
  perhaps,	
  other	
  departments	
  like	
  Human	
  Resources,	
  Audit,	
  
and	
  Customer	
  Service.	
  	
  
	
  
	
  

	
  

8	
  
Roles	
  and	
  Responsibilities	
  in	
  Common	
  Risk	
  Scenarios	
  
Once	
  roles	
  with	
  a	
  vested	
  interest	
  in	
  social	
  media	
  are	
  identified,	
  clear	
  lines	
  of	
  
responsibility	
  for	
  issues,	
  incidents,	
  and	
  normal	
  management	
  aspects	
  of	
  social	
  media	
  
need	
  to	
  be	
  clearly	
  defined.	
  	
  The	
  best	
  way	
  to	
  do	
  this	
  is	
  by	
  recognizing	
  common	
  risk	
  
scenarios	
  that	
  the	
  company	
  faces	
  from	
  social	
  media	
  and	
  identifying	
  the	
  necessary	
  
roles	
  and	
  responsibilities	
  of	
  the	
  various	
  interested	
  and	
  involved	
  departments	
  and	
  
groups	
  in	
  addressing	
  those	
  risks.	
  
	
  	
  
Below	
  are	
  five	
  commonly-­‐seen	
  risk	
  scenarios	
  and	
  issues	
  in	
  social	
  media.	
  	
  For	
  each	
  
one,	
  a	
  high-­‐level	
  overview	
  is	
  provided,	
  along	
  with	
  example	
  roles	
  and	
  responsibilities	
  
found	
  in	
  most	
  companies	
  and	
  organizations.	
  	
  
Scenario	
  1:	
  	
  Tracking	
  and	
  reporting	
  approved	
  and	
  fraudulent	
  social	
  media	
  accounts	
  
• Overview:	
  	
  It	
  is	
  determined	
  that	
  someone	
  external	
  to	
  the	
  organization	
  has	
  set	
  
up	
  one	
  or	
  more	
  unauthorized	
  social	
  media	
  accounts	
  that	
  purport	
  to	
  represent	
  
the	
  organization.	
  
• Roles	
  and	
  Responsibilities:	
  	
  
o Social	
  Marketing	
  tech	
  team	
  and	
  any	
  agency	
  supported	
  and	
  services,	
  
Marketing	
  and	
  IT	
  are	
  responsible	
  for	
  monitoring	
  for	
  new,	
  unauthorized	
  
accounts.	
  	
  
o Legal	
  is	
  responsible	
  for	
  notifying	
  the	
  social	
  network	
  with	
  a	
  request	
  to	
  
remove	
  the	
  account.	
  	
  Once	
  complete,	
  legal	
  should	
  report	
  back	
  to	
  
Marketing	
  for	
  verification.	
  
Scenario	
  2:	
  Social	
  media	
  account	
  being	
  hacked	
  
• Overview:	
  	
  One	
  or	
  more	
  social	
  media	
  accounts	
  are	
  compromised	
  and	
  
unauthorized	
  content	
  is	
  published	
  on	
  those	
  accounts.	
  
• Roles	
  and	
  responsibilities:	
  
o Corporate	
  Communications	
  is	
  responsible	
  for	
  having	
  a	
  defined	
  (and	
  
tested)	
  internal	
  /	
  external	
  communications	
  plan	
  and	
  process	
  created	
  
that	
  includes	
  agency	
  support.	
  	
  	
  
o Social	
  Media	
  with	
  any	
  agency	
  support	
  is	
  responsible	
  for	
  monitoring	
  all	
  
social	
  channels.	
  
o Marketing	
  leads	
  communications	
  with	
  the	
  advisement	
  of	
  Legal.	
  	
  	
  
o IT	
  leads	
  from	
  a	
  systems	
  perspective,	
  interfacing	
  with	
  Marketing	
  and	
  the	
  
o

	
  

social	
  networks.	
  	
  	
  
IT	
  Security	
  should	
  investigate	
  and	
  respond	
  to	
  each	
  incident	
  as	
  a	
  
security	
  breach,	
  and	
  take	
  actions	
  to	
  preclude	
  future	
  risk.	
  	
  

9	
  
o

Marketing	
  and	
  Security	
  should	
  report	
  to	
  a	
  broader	
  Social	
  Media	
  
Committee	
  and	
  Board	
  with	
  regard	
  to	
  outcome	
  and	
  risk	
  mitigation.	
  

Scenario	
  3:	
  Spam	
  and	
  malware	
  content	
  identified	
  
• Overview:	
  	
  Malware,	
  and	
  to	
  a	
  lesser	
  degree	
  spam,	
  is	
  identified	
  either	
  being	
  
introduced	
  through	
  or	
  existing	
  on	
  corporate	
  social	
  media	
  accounts.	
  
• Roles	
  and	
  responsibilities:	
  
o Community	
  Manager	
  first	
  identifies	
  the	
  bad	
  content,	
  ideally	
  using	
  
automated	
  technology,	
  implemented	
  with	
  the	
  support	
  of	
  IT	
  Security	
  
and	
  policy	
  already	
  defined	
  by	
  Legal.	
  
o Security	
  and	
  Legal	
  review	
  incident	
  reports,	
  remediation	
  efforts,	
  and	
  
workflow	
  periodically	
  for	
  verification.	
  
Scenario	
  4:	
  Release	
  of	
  customer	
  data	
  
• Overview:	
  	
  There	
  is	
  the	
  potential	
  for	
  a	
  release	
  of	
  customer	
  data	
  either	
  by	
  the	
  
customer,	
  inadvertently	
  by	
  the	
  company,	
  or	
  through	
  hacking	
  efforts.	
  
• Roles	
  and	
  responsibilities:	
  
o Community	
  Manager	
  should	
  identify	
  incidents	
  using	
  technology	
  
configured	
  by	
  the	
  IT	
  security	
  team,	
  under	
  the	
  guidance	
  of	
  Legal	
  and/or	
  
Compliance.	
  	
  	
  
o Community	
  manager	
  and	
  Social	
  Media	
  team	
  should	
  audit	
  and	
  report	
  
issues	
  regularly	
  to	
  Legal	
  and/or	
  Compliance.	
  
o Legal	
  and/or	
  Compliance	
  should	
  monitor	
  incidents	
  and	
  changes	
  to	
  laws	
  
and	
  government	
  guidelines,	
  and	
  recommend	
  necessary	
  policy	
  changes	
  
accordingly.	
  
o Risk	
  Management	
  should	
  evaluate	
  risk	
  to	
  the	
  organization	
  based	
  on	
  the	
  
potential,	
  volume	
  and,	
  severity	
  of	
  incidents.	
  
o Compliance	
  reviews	
  incidents	
  and	
  handling	
  of	
  regulated	
  or	
  controlled	
  
data	
  in	
  coordination	
  with	
  IT	
  Security.	
  
Scenario	
  5:	
  	
  Compliance	
  violations	
  or	
  release	
  of	
  sensitive	
  company	
  data	
  
• Overview:	
  The	
  company	
  has	
  the	
  potential	
  for	
  violations	
  of	
  compliance	
  
regulations	
  or	
  is	
  susceptible	
  to	
  unauthorized	
  release	
  of	
  company	
  data.	
  
• Roles	
  and	
  responsibilities:	
  
o Legal	
  and/or	
  Compliance	
  should	
  define	
  a	
  policy	
  and	
  plan	
  for	
  addressing	
  
this	
  issue,	
  based	
  on	
  state,	
  regional,	
  and	
  industry	
  requirements.	
  
o Legal	
  and/or	
  Compliance	
  should	
  work	
  with	
  the	
  Social	
  Media	
  team	
  to	
  
understand	
  application,	
  and	
  with	
  IT	
  to	
  map	
  technology	
  against	
  
enforcement	
  capabilities.	
  
	
  

10	
  
o

o
o

Compliance	
  reviews	
  incidents	
  and	
  handling	
  of	
  regulated	
  data,	
  and	
  
adjusts	
  policy	
  and	
  rules	
  for	
  communication	
  on	
  a	
  regular	
  basis.	
  
IT	
  Security	
  implements	
  the	
  policy	
  via	
  technology	
  controls.	
  
Social	
  Media	
  team	
  follows	
  defined	
  process	
  and	
  is	
  audited,	
  and	
  reports	
  
back	
  on	
  progress	
  and	
  any	
  irregularities	
  or	
  challenges	
  to	
  the	
  workflow.	
  

	
  
Who	
  Is	
  Responsible	
  for	
  the	
  Costs?	
  
The	
  most	
  often	
  asked	
  question	
  regarding	
  new	
  technology,	
  after	
  answering	
  “Who	
  is	
  
responsible	
  for	
  what?”	
  is	
  “Who	
  has	
  to	
  pay	
  for	
  it?”	
  	
  Social	
  media	
  protection	
  is	
  no	
  
exception.	
  	
  With	
  the	
  social	
  media	
  platforms,	
  the	
  cost	
  of	
  the	
  technology	
  and	
  managing	
  
it	
  is	
  often	
  a	
  shared	
  expense	
  between	
  the	
  IT	
  department	
  and	
  Marketing,	
  with	
  
Marketing	
  assessed	
  the	
  largest	
  portion.	
  	
  The	
  cost	
  of	
  managing	
  the	
  risk	
  of	
  social	
  media	
  
is	
  also	
  often	
  a	
  shared	
  expense	
  (see	
  Figure	
  3).	
  	
  
	
  
Figure	
  3:	
  Functional	
  Areas	
  and	
  Common	
  Social	
  Media	
  Risk	
  Cost	
  Responsibilities	
  

Functional	
  Area	
  
Marketing	
  and	
  
Communications	
  
Management	
  
Information	
  Technology	
  

Common	
  Cost	
  Responsibilities	
  
•
•
•
•
•
•
•

Social	
  Media	
  Technology	
  
Social	
  Media	
  Marketing	
  

•
•
•

Social	
  Community	
  
Management	
  and	
  Customer	
  
Service	
  
Legal	
  and	
  Audit	
  

•

Human	
  Resources	
  

•
•

	
  

•

Agency	
  services	
  and	
  support	
  fees	
  (Marketing)	
  
Social	
  media	
  risk	
  management	
  system	
  (Share	
  with	
  IT)	
  
Social	
  media	
  listening	
  system	
  (Share	
  with	
  IT)	
  
Other	
  social	
  media	
  technologies	
  and	
  platforms	
  (Share	
  with	
  IT)	
  
Social	
  media	
  risk	
  management	
  system	
  (Share	
  with	
  Marketing	
  
and	
  Communications)	
  
Social	
  media	
  listening	
  system	
  (Share	
  with	
  Marketing	
  and	
  
Communications)	
  
Other	
  social	
  media	
  technologies	
  and	
  platforms	
  (Share	
  with	
  
Marketing	
  and	
  Communications)	
  
Ongoing	
  management	
  of	
  social	
  media	
  risk	
  management	
  system	
  
Ongoing	
  management	
  of	
  social	
  listening	
  system	
  
Staffing	
  costs	
  of	
  social	
  media	
  marketing	
  efforts,	
  including	
  agency	
  
services	
  
Staffing	
  and	
  related	
  costs	
  of	
  community	
  platforms	
  and	
  social	
  
customer	
  management	
  systems	
  
Staffing	
  and	
  related	
  costs	
  related	
  to	
  legal	
  management	
  and	
  
ongoing	
  audit	
  efforts	
  
Staffing	
  and	
  related	
  costs	
  related	
  to	
  social	
  media	
  training	
  
Staffing	
  and	
  related	
  costs	
  related	
  to	
  internal	
  policy	
  management	
  

For	
  example,	
  the	
  actual	
  technology	
  need,	
  such	
  as	
  a	
  risk	
  and	
  compliance	
  application	
  or	
  
a	
  monitoring	
  application,	
  is	
  often	
  a	
  shared	
  expense	
  between	
  IT	
  and	
  Marketing	
  or	
  
Corporate	
  Communications,	
  with	
  Marketing	
  assessed	
  a	
  majority	
  of	
  the	
  expense.	
  	
  	
  
	
  
Other	
  costs,	
  such	
  as	
  legal	
  support,	
  audit	
  and	
  compliance	
  support,	
  and	
  employee	
  
training	
  are	
  often	
  taken	
  on	
  by	
  other	
  groups	
  in	
  whole	
  or	
  with	
  a	
  charge	
  back	
  
	
  

11	
  
mechanism	
  to	
  Marketing.	
  	
  For	
  example,	
  the	
  costs	
  taken	
  on	
  by	
  Legal	
  and	
  Compliance	
  
for	
  resources,	
  such	
  as	
  having	
  an	
  attorney	
  and/or	
  compliance	
  person	
  on	
  staff	
  that	
  has	
  
been	
  trained	
  and	
  has	
  expertise	
  in	
  social	
  media,	
  would	
  be	
  taken	
  by	
  the	
  Legal	
  or	
  
Compliance	
  departments	
  with	
  the	
  potential	
  for	
  some	
  chargeback	
  to	
  Marketing.	
  	
  
	
  
Training	
  all	
  employees	
  and	
  agency	
  staff	
  on	
  good	
  social	
  media	
  policies	
  and	
  practices	
  is	
  
often	
  times	
  covered	
  by	
  Human	
  Resources,	
  though	
  training	
  specific	
  groups	
  such	
  as	
  
social	
  media	
  Customer	
  Service	
  representatives,	
  or	
  the	
  home	
  department	
  of	
  
employees	
  who	
  engage	
  in	
  social	
  media.	
  

Making	
  It	
  Real:	
  	
  Actual	
  Responses	
  to	
  Social	
  Media	
  Risk	
  
In	
  order	
  to	
  understand	
  how	
  this	
  plays	
  out	
  in	
  reality,	
  we	
  spoke	
  with	
  the	
  former	
  Vice	
  
President	
  of	
  Social	
  Media	
  for	
  one	
  of	
  the	
  world’s	
  largest	
  financial	
  institutions.	
  	
  He	
  
described	
  two	
  use	
  cases,	
  based	
  on	
  actual	
  events,	
  and	
  how	
  his	
  cross-­‐functional	
  team	
  
worked	
  together	
  to	
  manage	
  them.	
  
Use	
  Case	
  #1:	
  	
  Discovering	
  and	
  tracking	
  bank-­‐owned	
  social	
  media	
  accounts	
  and	
  reporting	
  
fraudulent	
  accounts	
  
At	
  our	
  bank	
  we	
  had	
  a	
  Social	
  Media	
  Operations	
  team	
  that	
  reported	
  to	
  me	
  as	
  the	
  
head	
  of	
  Social	
  Media.	
  	
  The	
  staff	
  on	
  the	
  operations	
  team	
  was	
  responsible	
  for	
  
finding,	
  via	
  any	
  mechanism	
  possible,	
  social	
  accounts	
  owned	
  and	
  being	
  run	
  by	
  
the	
  bank.	
  	
  This	
  involved	
  web	
  searches,	
  as	
  well	
  as	
  querying	
  the	
  social	
  networks	
  
via	
  their	
  native	
  search	
  tools,	
  and	
  leveraging	
  data	
  from	
  listening	
  platforms.	
  
	
  
The	
  team	
  maintained	
  a	
  running	
  list	
  of	
  accounts.	
  	
  For	
  any	
  accounts	
  that	
  were	
  
deemed	
  ‘unauthorized,’	
  we	
  would	
  try	
  to	
  connect	
  directly	
  via	
  internal	
  company	
  
communications	
  to	
  either	
  authorize	
  and	
  incorporate	
  the	
  account,	
  or	
  have	
  it	
  
shut	
  down.	
  	
  For	
  any	
  accounts	
  that	
  were	
  external	
  and	
  were	
  found	
  to	
  be	
  
fraudulent	
  and	
  otherwise	
  inappropriately	
  using	
  our	
  bank’s	
  brand,	
  we	
  would	
  
report	
  the	
  account	
  to	
  our	
  assigned	
  legal	
  resource.	
  	
  The	
  Legal	
  Compliance	
  
Department	
  had	
  a	
  person	
  assigned	
  to	
  work	
  with	
  the	
  Social	
  Media	
  team	
  on	
  this	
  
very	
  issue.	
  	
  They	
  would	
  take	
  any	
  list	
  of	
  fraudulent	
  and	
  inappropriate	
  accounts	
  
and	
  report	
  them	
  to	
  the	
  social	
  networks	
  themselves	
  to	
  confiscate	
  them	
  or	
  have	
  
them	
  shut	
  down.	
  	
  
	
  

	
  

12	
  
Figure	
  4:	
  	
  Real-­‐World	
  Case	
  One	
  -­‐	
  Unauthorized	
  Accounts	
  

	
  
	
  
Use	
  Case	
  #2:	
  	
  Handling	
  ‘bad	
  content’	
  moderation	
  
Our	
  bank	
  is	
  a	
  highly	
  visible	
  entity	
  that	
  has	
  garnered	
  a	
  significant	
  amount	
  of	
  
social	
  engagement	
  and	
  interaction.	
  	
  As	
  engagement	
  increased,	
  such	
  as	
  
Facebook	
  comment	
  interaction,	
  we	
  recognized	
  the	
  need	
  to	
  remove	
  and	
  hide	
  
certain	
  comments	
  on	
  the	
  page	
  to	
  protect	
  sensitive	
  data	
  of	
  the	
  commenter	
  
where,	
  for	
  example,	
  they	
  inappropriately	
  posted	
  PII,	
  account	
  info,	
  and	
  other	
  
confidential	
  data	
  to	
  our	
  wall.	
  	
  We	
  also	
  had	
  to	
  remove	
  things	
  like	
  social	
  spam,	
  
offensive	
  content,	
  and	
  audience-­‐on-­‐audience	
  abuse	
  or	
  exploitation.	
  	
  For	
  all	
  of	
  
these,	
  it	
  is	
  important	
  to	
  note	
  that	
  this	
  was	
  and	
  is	
  not	
  about	
  removing	
  negativity	
  
toward	
  the	
  bank.	
  	
  It	
  is	
  about	
  protecting	
  the	
  audience	
  and	
  fostering	
  a	
  positive	
  
social	
  community.	
  
	
  
First,	
  my	
  Social	
  Media	
  team	
  –	
  in	
  conjunction	
  with	
  the	
  Social	
  Customer	
  Service	
  
team	
  –	
  worked	
  with	
  Legal	
  to	
  create	
  a	
  content	
  use	
  policy	
  to	
  publish	
  on	
  our	
  
accounts	
  as	
  a	
  link	
  (see	
  Figure	
  5).	
  	
  After	
  publishing	
  our	
  policy,	
  the	
  Social	
  
Customer	
  Service	
  team	
  was	
  responsible	
  for	
  enforcing	
  the	
  policy	
  across	
  our	
  
accounts,	
  while	
  our	
  Social	
  Operations	
  team	
  kept	
  reports	
  on	
  bad	
  content	
  
moderation	
  activity	
  and	
  published	
  that	
  metric	
  in	
  broader	
  social	
  media	
  reports	
  
for	
  our	
  executive	
  stakeholders.	
  
	
  
Figure	
  5:	
  	
  Real-­‐World	
  Case	
  Two	
  -­‐	
  Effective	
  Moderation	
  

	
  

13	
  
 

	
  

14	
  
Next	
  Steps	
  
The	
  only	
  guarantee	
  is	
  this	
  new	
  age	
  is	
  that	
  every	
  company	
  is	
  at	
  risk.	
  	
  It	
  may	
  be	
  today	
  or	
  
it	
  may	
  be	
  next	
  year,	
  but	
  it	
  is	
  more	
  likely	
  than	
  not	
  that	
  a	
  social	
  media	
  risk	
  will	
  manifest	
  
itself.	
  	
  To	
  mitigate	
  and	
  minimize	
  the	
  potential	
  impact	
  to	
  your	
  company,	
  you	
  need	
  to	
  
act	
  today	
  by	
  doing	
  the	
  following:	
  
	
  
Step	
  1:	
  	
  Define	
  a	
  governance	
  structure.	
  	
  	
  
Any	
  successful	
  social	
  media	
  risk	
  management	
  and	
  mitigation	
  effort	
  needs	
  a	
  foundation.	
  	
  
That	
  foundation	
  is	
  a	
  governance	
  structure.	
  	
  The	
  governance	
  structure	
  is	
  often	
  
determined	
  by	
  the	
  head	
  of	
  social	
  media,	
  leading	
  a	
  working	
  group	
  made	
  up	
  of	
  
representatives	
  from	
  Marketing	
  Management,	
  IT,	
  Social	
  Media	
  Marketing,	
  Legal	
  and	
  
Audit,	
  and	
  Human	
  Resources.	
  	
  The	
  governance	
  architecture,	
  at	
  a	
  minimum,	
  needs	
  to	
  
explain	
  who	
  is	
  responsible	
  for	
  what,	
  but	
  should	
  also	
  address	
  items	
  like	
  the	
  scope	
  of	
  
your	
  social	
  media	
  efforts,	
  branding	
  guidelines,	
  approval	
  processes,	
  continuity	
  planning,	
  
and	
  training	
  and	
  education.	
  
	
  
Step	
  2:	
  	
  Put	
  a	
  social	
  media	
  policy	
  in	
  place.	
  	
  	
  
A	
  social	
  media	
  policy	
  (or	
  set	
  of	
  policies)	
  that	
  provides	
  guidance	
  for	
  employees	
  and	
  
protects	
  the	
  company	
  and	
  customers	
  from	
  risk	
  should	
  come	
  right	
  after	
  governance.	
  	
  
This	
  may	
  take	
  the	
  form	
  of	
  a	
  single	
  policy,	
  a	
  set	
  of	
  policies,	
  or	
  even	
  a	
  set	
  of	
  guidelines.	
  	
  
The	
  purpose	
  of	
  these	
  policies	
  should	
  be	
  to	
  provide	
  a	
  set	
  of	
  guardrails	
  for	
  all	
  
employees,	
  those	
  specifically	
  engaged	
  in	
  social	
  media	
  on	
  behalf	
  of	
  the	
  brand,	
  and	
  
managers	
  across	
  the	
  organization.	
  	
  For	
  a	
  social	
  media	
  policy	
  or	
  set	
  of	
  guidelines	
  to	
  be	
  
both	
  useful	
  and	
  usable,	
  the	
  policy	
  should:	
  	
  	
  
	
  
1)	
  Be	
  clear	
  in	
  its	
  purpose;	
  	
  
2)	
  Be	
  in	
  sync	
  with	
  the	
  company	
  culture;	
  	
  
3)	
  Explain	
  how	
  the	
  correct	
  use	
  of	
  social	
  media	
  is	
  beneficial	
  to	
  the	
  company;	
  	
  
4)	
  Be	
  written	
  in	
  plain	
  language	
  and	
  not	
  legalese;	
  	
  
5)	
  Have	
  the	
  input	
  and	
  buy-­‐in	
  from	
  all	
  departments;	
  and	
  	
  
6)	
  Be	
  as	
  short	
  and	
  to	
  the	
  point	
  as	
  possible.	
  
	
  
Step	
  3:	
  	
  Select	
  technologies	
  that	
  will	
  support	
  your	
  organization.	
  	
  	
  
Once	
  companies	
  have	
  a	
  foundational	
  governance	
  structure	
  in	
  place,	
  then	
  IT	
  
departments	
  and	
  social	
  media	
  technology	
  groups	
  can	
  put	
  into	
  place	
  the	
  appropriate	
  
technology	
  tools	
  to	
  manage	
  and	
  mitigate	
  risk.	
  	
  This	
  should	
  include	
  tools	
  that	
  allow	
  the	
  
company	
  to	
  have	
  visibility	
  into	
  the	
  social	
  infrastructure	
  (how	
  many	
  accounts	
  and	
  on	
  
	
  
15	
  
what	
  platform)	
  of	
  the	
  company,	
  provide	
  governance	
  for	
  those	
  accounts	
  around	
  types	
  
of	
  content	
  and	
  data	
  that	
  are	
  published	
  across	
  them,	
  ensure	
  compliance	
  with	
  internal	
  
policies	
  and	
  external	
  regulations,	
  and	
  protect	
  company	
  social	
  accounts	
  and	
  platforms	
  
from	
  being	
  hacked.	
  	
  Once	
  these	
  platforms	
  are	
  in	
  place,	
  the	
  Social	
  Media	
  Technology	
  
Group	
  would	
  be	
  responsible	
  for	
  training	
  the	
  social	
  media	
  marketing	
  roles,	
  the	
  social	
  
media	
  community	
  management	
  and	
  customer	
  service	
  roles,	
  and	
  as	
  necessary	
  legal,	
  
audit,	
  and	
  human	
  resources	
  roles.	
  
	
  	
  
Step	
  4:	
  	
  Test	
  your	
  organization.	
  	
  	
  
After	
  the	
  governance,	
  the	
  policies,	
  and	
  the	
  technologies,	
  companies	
  need	
  to	
  test	
  and	
  
retest	
  to	
  make	
  sure	
  that	
  all	
  the	
  moving	
  parts	
  remain	
  in	
  sync.	
  	
  For	
  example,	
  training	
  
employees	
  and	
  agency	
  staff	
  on	
  an	
  out-­‐of-­‐date	
  social	
  media	
  policy	
  is	
  almost	
  as	
  
dangerous	
  as	
  not	
  having	
  one.	
  	
  Not	
  keeping	
  track	
  of	
  all	
  of	
  the	
  brand	
  presences	
  on	
  
social	
  media	
  and	
  allowing	
  them	
  to	
  proliferate	
  without	
  control	
  can	
  open	
  the	
  brand	
  to	
  
unnecessary	
  risks.	
  	
  Not	
  updating	
  a	
  technology	
  application	
  to	
  cover	
  a	
  new	
  platform	
  
can	
  place	
  the	
  company	
  at	
  increased	
  risk.	
  	
  Companies	
  should	
  test	
  their	
  ability	
  to	
  
respond	
  to	
  different	
  social	
  media	
  risks	
  by	
  running	
  a	
  series	
  of	
  scenario	
  exercises	
  based	
  
upon	
  known	
  or	
  expected	
  social	
  media	
  risks.	
  	
  These	
  might	
  range	
  from	
  a	
  scenario	
  
covering	
  a	
  miss	
  sent	
  tweet,	
  such	
  as	
  a	
  personal	
  statement	
  on	
  a	
  company	
  channel,	
  to	
  a	
  
scenario	
  involving	
  an	
  irate	
  customer	
  who	
  takes	
  to	
  social	
  media	
  to	
  voice	
  their	
  issue,	
  to	
  
a	
  scenario	
  covering	
  a	
  social-­‐media	
  based	
  reputation	
  attack	
  by	
  an	
  NGO,	
  like	
  efforts	
  by	
  
Greenpeace	
  against	
  Nestle	
  and	
  British	
  Petroleum.	
  
	
  

	
  

	
  

16	
  
About	
  Nexgate	
  
Nexgate	
  provides	
  cloud-­‐based	
  brand	
  protection	
  and	
  compliance	
  for	
  enterprise	
  social	
  
media	
  accounts.	
  	
  Its	
  patent-­‐pending	
  technology	
  seamlessly	
  integrates	
  with	
  leading	
  
social	
  media	
  platforms	
  and	
  applications	
  to	
  find	
  and	
  audit	
  brand	
  affiliated	
  accounts,	
  
control	
  connected	
  appliances,	
  detect	
  and	
  remediate	
  compliance	
  risks,	
  archive	
  
communications,	
  and	
  detect	
  fraud	
  and	
  account	
  hacking.	
  
	
  
Nexgate	
  is	
  based	
  in	
  San	
  Francisco,	
  California,	
  and	
  is	
  used	
  by	
  some	
  of	
  the	
  world’s	
  
largest	
  financial	
  services,	
  pharmaceutical,	
  Internet	
  security,	
  manufacturing,	
  media,	
  
and	
  retail	
  organizations	
  to	
  discover,	
  audit,	
  and	
  protect	
  their	
  social	
  infrastructure.	
  	
  
	
  
	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
i	
  Facebook	
  Reports	
  Second	
  Quarter	
  2013	
  Results,	
  July	
  24,	
  2013.	
  
http://investor.fb.com/releasedetail.cfm?ReleaseID=780093	
  
ii	
  Smith,	
  Craig.	
  (September	
  2013)	
  By	
  The	
  Numbers:	
  31	
  Amazing	
  Twitter	
  Stats.	
  
September	
  5,	
  2013.	
  http://expandedramblings.com/index.php/march-­‐2013-­‐by-­‐the-­‐
numbers-­‐a-­‐few-­‐amazing-­‐twitter-­‐stats/	
  
iii	
  YouTube	
  Hits	
  a	
  Billion	
  Monthly	
  Users.	
  March	
  3,	
  2013.	
  http://youtube-­‐
global.blogspot.com/2013/03/onebillionstrong.html	
  
iv	
  Harvard	
  Business	
  Review	
  Analytics	
  Services.	
  The	
  New	
  Conversation:	
  Taking	
  Social	
  
Media	
  from	
  Talk	
  to	
  Action.	
  
http://www.sas.com/resources/whitepaper/wp_23348.pdf	
  
v	
  Fox,	
  Zoe.	
  10	
  Most	
  Liked	
  Brands	
  by	
  U.S.	
  Facebook	
  Users.	
  Mashable,	
  Sept	
  6,	
  2013.	
  
http://mashable.com/2013/09/06/facebook-­‐brands-­‐likes/	
  
vi	
  Larcker,	
  David,	
  Larker,	
  Sarah,	
  and	
  Tayan,	
  Brian.	
  What	
  Do	
  Corporate	
  Directors	
  and	
  
Senior	
  Managers	
  Know	
  about	
  Social	
  Media?	
  The	
  Conference	
  Board,	
  October	
  2012.	
  
http://www.gsb.stanford.edu/sites/default/files/documents/TCB_DN-­‐V4N20-­‐
12.Social_Media.pdf	
  
vii	
  Lauicella,	
  Tom,	
  Stewart,	
  Christopher,	
  and	
  Ovide,	
  Shira.	
  Twitter	
  Hoax	
  Sparks	
  Swift	
  
Stock	
  Swoon,	
  The	
  Wall	
  Street	
  Journal,	
  April	
  23,	
  2013,	
  
http://online.wsj.com/article/SB1000142412788732373560457844120160519348
8.html	
  

	
  

17	
  

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  • 1.
  • 2. Title:  Mapping  Organizational  Roles  &   Responsibilities  for  Social  Media  Risk   Subtitle:  How  to  Define  and  Implement  Organizational  Roles  and   Responsibilities  for  Enterprise  Social  Media  Risk  Management         1  
  • 3. Executive  Summary   Social  media  has  introduced  a  wide  array  of  opportunities  for  organizations  to  engage   with  customers  and  partners.    Marketers  have  been  tasked  with  capitalizing  on  these   opportunities.    But  with  these  opportunities  comes  risks  –  like  a  damaged  brand   reputation,  regulatory  violations,  privacy  issues,  intellectual  property  compromises,   social  engineering,  Astroturf-­‐ing,  phishing,  and  the  list  goes  on.    What  is  less  clear  is   who  is  responsible  for  managing  and  mitigating  the  risks  tied  to  social  media.       To  get  optimal  value  from  social  media  efforts,  organizations  need  to  establish   controls  for  the  downsides  of  the  technology  by  first  clearly  defining  which  roles   within  their  unique  corporate  structure  should  be  involved  in  social  media  risk   management  and  their  specific  responsibilities.    Organizations  then  need  to  give   those  roles  the  proper  tools,  such  as  policies  and  technologies,  to  be  successful  at   identifying,  managing,  and  mitigating  social  media  risks.    This  report  will  outline  a   framework  for  assigning  roles  and  responsibilities  to  manage  social  media  risk.         2  
  • 4. Social  Media  Is  Opening  New  Opportunities…  And  Risks   Whether  it  is  a  Facebook  page,  a  Twitter  stream,  a  Tumblr  blog,  a  Pinterest  page,  or   another  social  channel,  consumers  are  jumping  on  the  social  media  bandwagon.    For   example,  it  was  reported  that,  on  Facebook  alone,  there  were  1.15  billion  monthly   active  users  with  819  million  views  via  some  kind  of  mobile  device.i    Twitter  has   approximately  500  million  users  with  more  than  200  million  identified  as  active.ii     Video  platform,  YouTube,  has  over  a  billion  unique  users  every  month.iii    The  most-­‐ visited  consumer  social  networks  include  well-­‐known  platforms  like  Facebook,   Twitter,  Foursquare,  Pinterest,  and  Tumblr,  along  with  lesser  known,  but  growing,   platforms  like  Pheed,  Thumb,  and  Vine.   Social  Adoption  in  Organizations  Is  Maturing   No  brand  wants  to  be  too  far  away  from  their  customers,  so  companies  are  working   diligently  to  meet  consumers  where  they  are,  on  social  media  platforms.    Today,  more   than  79%  of  all  companies  are  using,  or  are  in  the  process  of  adopting,  one  or  more   social  media  channels  as  a  primary  conduit  to  their  customers.iv    Many  of  these   companies  are  experiencing  great  success,  like  iconic  brands  Walmart,  Target,  and   Amazon  (see  Figure  1).v    Their  efforts  are  spread  across  channels,  with  77%  of  the   Fortune  500  using  Twitter,  70%  employing  Facebook,  and  69%  on  YouTube.    What   are  companies  using  social  media  for?    59%  use  it  to  engage  with  their  customers,   49%  to  advertise,  35%  to  conduct  research  on  their  customers,  and  30%  to  conduct   research  on  competitors  and  new  products.vi     Figure  1:    Connecting  with  Customers  on  Social  Media       3  
  • 5. Social  Media  Is  Also  Exposing  Brands  to  Risk   For  all  of  its  amazing  upsides  for  companies,  such  as  being  able  to  directly  interact   with  customers,  there  is  also  an  ugly  underside  to  social  media  –  the  risks  to   companies  from  social  media.    Whether  it  is  damaging  the  reputation  of  a  company,   releasing  of  confidential  information,  regulatory  and  compliance  risks,  or  identity   theft,  social  media  comes  with  its  own  set  of  risks  based  upon  the  unique,  highly   interactive,  complex,  and  almost  uncontrollable  nature  of  the  interactions.    The   manifestation  of  social  media  risk  can  be  as  low-­‐level  as  an  unsatisfied  customer   tweeting  to  someone,  to  as  extreme  as  the  $200  billion  of  value  that  was  erased  from   the  U.S.  stock  markets  after  a  fraudulent  tweet,  supposedly  from  the  Associated  Press,   was  sent  out  about  an  explosion  at  the  White  House.vii   Who  Does  What,  and  Who  Pays  for  It?   Social  media  is  a  new  channel  with  new  ways  of  interacting  and  new  risks  that   prompt  the  question  –  who  is  responsible  for  managing  the  risks?    For  example,  the   CIO,  if  the  company  has  one,  is  the  person  responsible  for  managing  IT  risks  like   hardware  downtime,  and  stopping  hackers.    When  it  comes  to  managing  financial   risks,  like  regulatory  changes,  fraud  and  interest  rate  changes,  it  is  pretty  clear  that  the   CFO  should  be  responsible  for  ensuring  that  those  types  of  risks  don’t  significantly   affect  the  company.    But  who  is  responsible  for  managing  social  media  risk?   Roles  with  an  Interest  in  Social  Media  Risk  Management   With  the  unique  nature  of  social  media,  responsibility  for  managing  and  mitigating   social  media  risk  is  often  spread  across  numerous  departments.    That  responsibility  is   also  typically  spread  across  a  number  of  corporate  functions,  including  Marketing,  IT,   Communications,  Legal,  Audit,  Risk,  and  Human  Resources.     The  best  way  for  companies  to  align  organizational  responsibility  and  governance  is   to  break  it  down  by  three  levels  –  titles,  roles,  and  responsibilities  across  seven   necessary  functional  areas  as  follows:   Marketing  and  Communications  Management   Representative  Titles:    Chief  Marketing  Officer,  Vice  President  of  Marketing,   and  Vice  President  of  Corporate  Communications.   Role  Level:    Strategic.     Social  Media  Responsibilities:    Generally  serves  as  executive  sponsor  or   executive  owner  of  social  media  initiatives  within  an  overall  marketing  and   brand  management  effort.    Accountable  to  the  Board  of  Directors  and   executive  team  for  the  success  and  failure  of  social  media  efforts,  including     4  
  • 6. social  media  activity  and  brand  presence,  return  on  investment,  and  any   associated  crises.   Key  Social  Media  Risk  Concerns:    Brand  and  image  protection,  reputation   management,  and  regulatory  compliance  for  Marketing.     Information  Technology   Representative  Titles:    Chief  Information  Officer  and  Chief  Information   Security  Officer   Role  Level:    Strategic.     Social  Media  Responsibilities:    Generally  serves  as  executive  co-­‐sponsor  or   co-­‐owner  of  social  media  initiatives  and  efforts  within  the  context  of  an  overall   information  technology  architecture  and  an  overall  security  architecture.     Accountable  to  the  Board  of  Directors  and  Chief  Executive,  in  conjunction  with   the  CMO,  for  social  media  compliance,  privacy,  IP  and  company  information   protection,  and  any  channel  breaches.   Key  Social  Media  Risk  Concerns:    Regulatory  compliance,  data  privacy  and   security,  social  engineering,  data  management,  and  network  and  resource   protection.   Social  Media  Technology   Representative  Titles:    Chief  Technology  Officer,  Enterprise  Architect,  Digital   Security  Manager,  and  Digital  Infrastructure  Manager.   Role  Level:    Strategic  to  tactical.   Social  Media  Responsibilities:    Select,  deploy,  and  standardize  social  media   management  applications  and  tools,  social  media  account  management,  social   media  policy  enforcement,  and  social  media  training.   Key  Social  Media  Risk  Concerns:    Social  media  account  security,  social  media   privacy,  API  vulnerabilities,  standardization  of  risk  mitigation  efforts  across   channels,  app  proliferation,  and  channel  proliferation.     Social  Media  Marketing   Representative  Titles:    Director/Manager  of  Social  Media,  Director/Manager   of  Digital  Marketing,  Director/Manager  of  Corporate  Communications,  and  any   agencies  with  social  media  responsibility.     Role  Level:    Managerial.     Social  Media  Responsibilities:    Responsible  for  day-­‐to-­‐day  management  of   social  media  efforts  including  channel  management,  content  and  channel   planning,  content  creation  and  approval,  channel  and  application  security,     5  
  • 7. social  analytics,  social  network  monitoring,  and  initial  issue  and  crisis   identification  and  response.   Key  Social  Media  Risk  Concerns:    Internal  and  external  (fraudulent  or   copycat)  channel  and  site  proliferation,  minimizing  operational  risks  through   policies  and  training,  and  on-­‐channel  security  management.   Social  Community  Management  and  Customer  Service   Representative  Titles:    Social  Community  Manager  and  Social  Customer   Service  Manager   Role  Level:    Managerial  and  operational   Social  Media  Responsibilities:    Day-­‐to-­‐day  customer  interaction,  community   management,  monitoring  of  the  community  and  brand  in  the  social  landscape,   and  management  of  acceptable-­‐use  policies.     Key  Social  Media  Risk  Concerns:    Poor  community  management,   inappropriate  community  use,  customer  interactions,  customer  data   management,  social  media  spam,  and  customer  issue  escalation  and   intensification.     Legal  and  Audit   Representative  Titles:    Chief  Legal  Officer,  Chief  Compliance  Officer,  Chief   Risk  Officer,  Compliance  Manager,  and  Audit  Manager.   Role  Level:    Strategic  to  operational   Social  Media  Responsibilities:    Regulatory  and  legal  compliance,  oversight  of   social  media  policies  and  governance,  auditing  of  brand  accounts,  fraud   identification  and  management,  ensuring  standardization  of  the  brand  and   brand  compliance  across  social  networks,  identification  and  addressing  of   brand  hijacking,  and  brand/reputation  management  and  protection.   Key  Social  Media  Risk  Concerns:    Brand  compliance,  including  internal  use,   partner  and  affiliate  use,  and  community  use,  intentional  and  unintentional   brand  hijacking,  and  erosion  of  brand  reputation.   Human  Resources   Representative  Titles:    Chief  People  Officer  and  Director/Manager  of  Human   Resources   Role  Level:    Strategic  to  operational   Social  Media  Responsibilities:    Employee  oversight,  training  on  social  media   governance,  policies  and  tools,  and  management  of  internal  non-­‐compliance   with  social  media  policies.       6  
  • 8. Key  Social  Media  Risk  Concerns:    Lack  of  employee  training  on  social  media   policies  and  tools,  identification  and  correction  of  employee  actions  on  social   media,  and  safety  of  employee  personal  use  of  social  media.   Social  Media  Risk  Management  Responsibilities   For  too  many  companies,  initial  social  media  efforts  are  haphazard  and  uncoordinated,   yet  require  the  participation  of  multiple  roles  (see  Figure  2).    While  Marketing  has  set   up  a  Facebook  page  and  maybe  a  Twitter  feed,  Human  Resources  has  established  a   presence  on  LinkedIn  for  recruiting,  and  individual  sales  reps  are  tweeting  away,  while   IT  is  trying  to  lock  down  all  of  the  systems  to  protect  the  company.    It  borders  on  the   edge  of  pandemonium  and  it  exposes  the  brand  to  unnecessary  risk.       Effective  social  media  risk  management  requires  internal  coordination  across   departments  and  groups  for  the  following:   1) Agreeing  on  the  corporate  purposes  and  strategy  for  adopting  social  media   channels  and  platforms;     2) Claiming  the  corporate  geography  on  the  different  social  media  channels;     3) Monitoring  access,  content,  and  applications  across  the  social  landscape;     4) Putting  together  and  executing  an  implementation  plan  for  the  strategy,   including  a  crisis  communications  and  response  plan;  and     5) Following  up  on  the  execution,  including  success  metrics.         None  of  these  can  happen  without  help  from  multiple  parts  of  the  organization.         7  
  • 9. Figure  2:    What  Roles  Should  Be  Involved  in  Social  Risk  Management?   Marketing  &  Communications   Managements   • Chief  Marketing  Ofhicer   • Vice  President  of  Marketing   • Vice  President  of  Corporate  Communications   Information  Technology   • Chief  Information  Ofhicer   • Chief  Information  Security  Ofhicer   Social  Media  Technology   • Chief  Technology  Ofhicer   • Digital  Security  Manager   • Digital  Infrastructure  Manager   Social  Media  Marketing   Social  Community  Management  &   Customer  Service   Legal  and  Audit   Human  Resources   • Director/Manager  of  Social  Media   • Director/Manager  of  Digital  Marketing   • Director/Manager  of  Corporate  Communications   • Social  Media  Agency   • Social  Community  Manager   • Social  Customer  Service  Manager   • Social  Media  Agency   • Chief  Legal  Ofhicer    Chief  Risk  Ofhicer   • Chief  Compliance  Ofhicer                            Compliance/Audit  Manager   • Chief  People  Ofhicer   • Director/Manager  of  Human  Resources     For  example,  agreeing  on  the  corporate  purposes  and  strategies  for  social  media  is   primarily  a  function  of  marketing  or  corporate  communications.    But,  as  social  media  is   used  for  purposes  other  than  marketing,  such  as  a  customer  service  tool  or  a  recruiting   tool,  the  Customer  Service  team  and  the  HR  team  need  to  be  involved  from  a  platform   and  tool  selection  perspective,  and  IT  from  a  security  technology  view.         The  monitoring  of  social  media  is  primarily  the  responsibility  of  the  social  media  team   and  any  agency  support  they  utilize,  but  could  also  include  Customer  Service,  as   customers  compliment  or  complain  about  the  brand  on  social  media.    It  could  include   market  research,  as  information  is  gleaned  about  customers.    It  should  also  include   risk  and  security  teams  as  social  media  provides  a  channel  for  spear-­‐phishing,  social   engineering  and  other  risks.  Though  different  for  each  organization,  effective  social   media  risk  management  requires  the  active  participation  of,  at  the  minimum,   Marketing,  IT,  Legal,  and  perhaps,  other  departments  like  Human  Resources,  Audit,   and  Customer  Service.           8  
  • 10. Roles  and  Responsibilities  in  Common  Risk  Scenarios   Once  roles  with  a  vested  interest  in  social  media  are  identified,  clear  lines  of   responsibility  for  issues,  incidents,  and  normal  management  aspects  of  social  media   need  to  be  clearly  defined.    The  best  way  to  do  this  is  by  recognizing  common  risk   scenarios  that  the  company  faces  from  social  media  and  identifying  the  necessary   roles  and  responsibilities  of  the  various  interested  and  involved  departments  and   groups  in  addressing  those  risks.       Below  are  five  commonly-­‐seen  risk  scenarios  and  issues  in  social  media.    For  each   one,  a  high-­‐level  overview  is  provided,  along  with  example  roles  and  responsibilities   found  in  most  companies  and  organizations.     Scenario  1:    Tracking  and  reporting  approved  and  fraudulent  social  media  accounts   • Overview:    It  is  determined  that  someone  external  to  the  organization  has  set   up  one  or  more  unauthorized  social  media  accounts  that  purport  to  represent   the  organization.   • Roles  and  Responsibilities:     o Social  Marketing  tech  team  and  any  agency  supported  and  services,   Marketing  and  IT  are  responsible  for  monitoring  for  new,  unauthorized   accounts.     o Legal  is  responsible  for  notifying  the  social  network  with  a  request  to   remove  the  account.    Once  complete,  legal  should  report  back  to   Marketing  for  verification.   Scenario  2:  Social  media  account  being  hacked   • Overview:    One  or  more  social  media  accounts  are  compromised  and   unauthorized  content  is  published  on  those  accounts.   • Roles  and  responsibilities:   o Corporate  Communications  is  responsible  for  having  a  defined  (and   tested)  internal  /  external  communications  plan  and  process  created   that  includes  agency  support.       o Social  Media  with  any  agency  support  is  responsible  for  monitoring  all   social  channels.   o Marketing  leads  communications  with  the  advisement  of  Legal.       o IT  leads  from  a  systems  perspective,  interfacing  with  Marketing  and  the   o   social  networks.       IT  Security  should  investigate  and  respond  to  each  incident  as  a   security  breach,  and  take  actions  to  preclude  future  risk.     9  
  • 11. o Marketing  and  Security  should  report  to  a  broader  Social  Media   Committee  and  Board  with  regard  to  outcome  and  risk  mitigation.   Scenario  3:  Spam  and  malware  content  identified   • Overview:    Malware,  and  to  a  lesser  degree  spam,  is  identified  either  being   introduced  through  or  existing  on  corporate  social  media  accounts.   • Roles  and  responsibilities:   o Community  Manager  first  identifies  the  bad  content,  ideally  using   automated  technology,  implemented  with  the  support  of  IT  Security   and  policy  already  defined  by  Legal.   o Security  and  Legal  review  incident  reports,  remediation  efforts,  and   workflow  periodically  for  verification.   Scenario  4:  Release  of  customer  data   • Overview:    There  is  the  potential  for  a  release  of  customer  data  either  by  the   customer,  inadvertently  by  the  company,  or  through  hacking  efforts.   • Roles  and  responsibilities:   o Community  Manager  should  identify  incidents  using  technology   configured  by  the  IT  security  team,  under  the  guidance  of  Legal  and/or   Compliance.       o Community  manager  and  Social  Media  team  should  audit  and  report   issues  regularly  to  Legal  and/or  Compliance.   o Legal  and/or  Compliance  should  monitor  incidents  and  changes  to  laws   and  government  guidelines,  and  recommend  necessary  policy  changes   accordingly.   o Risk  Management  should  evaluate  risk  to  the  organization  based  on  the   potential,  volume  and,  severity  of  incidents.   o Compliance  reviews  incidents  and  handling  of  regulated  or  controlled   data  in  coordination  with  IT  Security.   Scenario  5:    Compliance  violations  or  release  of  sensitive  company  data   • Overview:  The  company  has  the  potential  for  violations  of  compliance   regulations  or  is  susceptible  to  unauthorized  release  of  company  data.   • Roles  and  responsibilities:   o Legal  and/or  Compliance  should  define  a  policy  and  plan  for  addressing   this  issue,  based  on  state,  regional,  and  industry  requirements.   o Legal  and/or  Compliance  should  work  with  the  Social  Media  team  to   understand  application,  and  with  IT  to  map  technology  against   enforcement  capabilities.     10  
  • 12. o o o Compliance  reviews  incidents  and  handling  of  regulated  data,  and   adjusts  policy  and  rules  for  communication  on  a  regular  basis.   IT  Security  implements  the  policy  via  technology  controls.   Social  Media  team  follows  defined  process  and  is  audited,  and  reports   back  on  progress  and  any  irregularities  or  challenges  to  the  workflow.     Who  Is  Responsible  for  the  Costs?   The  most  often  asked  question  regarding  new  technology,  after  answering  “Who  is   responsible  for  what?”  is  “Who  has  to  pay  for  it?”    Social  media  protection  is  no   exception.    With  the  social  media  platforms,  the  cost  of  the  technology  and  managing   it  is  often  a  shared  expense  between  the  IT  department  and  Marketing,  with   Marketing  assessed  the  largest  portion.    The  cost  of  managing  the  risk  of  social  media   is  also  often  a  shared  expense  (see  Figure  3).       Figure  3:  Functional  Areas  and  Common  Social  Media  Risk  Cost  Responsibilities   Functional  Area   Marketing  and   Communications   Management   Information  Technology   Common  Cost  Responsibilities   • • • • • • • Social  Media  Technology   Social  Media  Marketing   • • • Social  Community   Management  and  Customer   Service   Legal  and  Audit   • Human  Resources   • •   • Agency  services  and  support  fees  (Marketing)   Social  media  risk  management  system  (Share  with  IT)   Social  media  listening  system  (Share  with  IT)   Other  social  media  technologies  and  platforms  (Share  with  IT)   Social  media  risk  management  system  (Share  with  Marketing   and  Communications)   Social  media  listening  system  (Share  with  Marketing  and   Communications)   Other  social  media  technologies  and  platforms  (Share  with   Marketing  and  Communications)   Ongoing  management  of  social  media  risk  management  system   Ongoing  management  of  social  listening  system   Staffing  costs  of  social  media  marketing  efforts,  including  agency   services   Staffing  and  related  costs  of  community  platforms  and  social   customer  management  systems   Staffing  and  related  costs  related  to  legal  management  and   ongoing  audit  efforts   Staffing  and  related  costs  related  to  social  media  training   Staffing  and  related  costs  related  to  internal  policy  management   For  example,  the  actual  technology  need,  such  as  a  risk  and  compliance  application  or   a  monitoring  application,  is  often  a  shared  expense  between  IT  and  Marketing  or   Corporate  Communications,  with  Marketing  assessed  a  majority  of  the  expense.         Other  costs,  such  as  legal  support,  audit  and  compliance  support,  and  employee   training  are  often  taken  on  by  other  groups  in  whole  or  with  a  charge  back     11  
  • 13. mechanism  to  Marketing.    For  example,  the  costs  taken  on  by  Legal  and  Compliance   for  resources,  such  as  having  an  attorney  and/or  compliance  person  on  staff  that  has   been  trained  and  has  expertise  in  social  media,  would  be  taken  by  the  Legal  or   Compliance  departments  with  the  potential  for  some  chargeback  to  Marketing.       Training  all  employees  and  agency  staff  on  good  social  media  policies  and  practices  is   often  times  covered  by  Human  Resources,  though  training  specific  groups  such  as   social  media  Customer  Service  representatives,  or  the  home  department  of   employees  who  engage  in  social  media.   Making  It  Real:    Actual  Responses  to  Social  Media  Risk   In  order  to  understand  how  this  plays  out  in  reality,  we  spoke  with  the  former  Vice   President  of  Social  Media  for  one  of  the  world’s  largest  financial  institutions.    He   described  two  use  cases,  based  on  actual  events,  and  how  his  cross-­‐functional  team   worked  together  to  manage  them.   Use  Case  #1:    Discovering  and  tracking  bank-­‐owned  social  media  accounts  and  reporting   fraudulent  accounts   At  our  bank  we  had  a  Social  Media  Operations  team  that  reported  to  me  as  the   head  of  Social  Media.    The  staff  on  the  operations  team  was  responsible  for   finding,  via  any  mechanism  possible,  social  accounts  owned  and  being  run  by   the  bank.    This  involved  web  searches,  as  well  as  querying  the  social  networks   via  their  native  search  tools,  and  leveraging  data  from  listening  platforms.     The  team  maintained  a  running  list  of  accounts.    For  any  accounts  that  were   deemed  ‘unauthorized,’  we  would  try  to  connect  directly  via  internal  company   communications  to  either  authorize  and  incorporate  the  account,  or  have  it   shut  down.    For  any  accounts  that  were  external  and  were  found  to  be   fraudulent  and  otherwise  inappropriately  using  our  bank’s  brand,  we  would   report  the  account  to  our  assigned  legal  resource.    The  Legal  Compliance   Department  had  a  person  assigned  to  work  with  the  Social  Media  team  on  this   very  issue.    They  would  take  any  list  of  fraudulent  and  inappropriate  accounts   and  report  them  to  the  social  networks  themselves  to  confiscate  them  or  have   them  shut  down.         12  
  • 14. Figure  4:    Real-­‐World  Case  One  -­‐  Unauthorized  Accounts       Use  Case  #2:    Handling  ‘bad  content’  moderation   Our  bank  is  a  highly  visible  entity  that  has  garnered  a  significant  amount  of   social  engagement  and  interaction.    As  engagement  increased,  such  as   Facebook  comment  interaction,  we  recognized  the  need  to  remove  and  hide   certain  comments  on  the  page  to  protect  sensitive  data  of  the  commenter   where,  for  example,  they  inappropriately  posted  PII,  account  info,  and  other   confidential  data  to  our  wall.    We  also  had  to  remove  things  like  social  spam,   offensive  content,  and  audience-­‐on-­‐audience  abuse  or  exploitation.    For  all  of   these,  it  is  important  to  note  that  this  was  and  is  not  about  removing  negativity   toward  the  bank.    It  is  about  protecting  the  audience  and  fostering  a  positive   social  community.     First,  my  Social  Media  team  –  in  conjunction  with  the  Social  Customer  Service   team  –  worked  with  Legal  to  create  a  content  use  policy  to  publish  on  our   accounts  as  a  link  (see  Figure  5).    After  publishing  our  policy,  the  Social   Customer  Service  team  was  responsible  for  enforcing  the  policy  across  our   accounts,  while  our  Social  Operations  team  kept  reports  on  bad  content   moderation  activity  and  published  that  metric  in  broader  social  media  reports   for  our  executive  stakeholders.     Figure  5:    Real-­‐World  Case  Two  -­‐  Effective  Moderation     13  
  • 16. Next  Steps   The  only  guarantee  is  this  new  age  is  that  every  company  is  at  risk.    It  may  be  today  or   it  may  be  next  year,  but  it  is  more  likely  than  not  that  a  social  media  risk  will  manifest   itself.    To  mitigate  and  minimize  the  potential  impact  to  your  company,  you  need  to   act  today  by  doing  the  following:     Step  1:    Define  a  governance  structure.       Any  successful  social  media  risk  management  and  mitigation  effort  needs  a  foundation.     That  foundation  is  a  governance  structure.    The  governance  structure  is  often   determined  by  the  head  of  social  media,  leading  a  working  group  made  up  of   representatives  from  Marketing  Management,  IT,  Social  Media  Marketing,  Legal  and   Audit,  and  Human  Resources.    The  governance  architecture,  at  a  minimum,  needs  to   explain  who  is  responsible  for  what,  but  should  also  address  items  like  the  scope  of   your  social  media  efforts,  branding  guidelines,  approval  processes,  continuity  planning,   and  training  and  education.     Step  2:    Put  a  social  media  policy  in  place.       A  social  media  policy  (or  set  of  policies)  that  provides  guidance  for  employees  and   protects  the  company  and  customers  from  risk  should  come  right  after  governance.     This  may  take  the  form  of  a  single  policy,  a  set  of  policies,  or  even  a  set  of  guidelines.     The  purpose  of  these  policies  should  be  to  provide  a  set  of  guardrails  for  all   employees,  those  specifically  engaged  in  social  media  on  behalf  of  the  brand,  and   managers  across  the  organization.    For  a  social  media  policy  or  set  of  guidelines  to  be   both  useful  and  usable,  the  policy  should:         1)  Be  clear  in  its  purpose;     2)  Be  in  sync  with  the  company  culture;     3)  Explain  how  the  correct  use  of  social  media  is  beneficial  to  the  company;     4)  Be  written  in  plain  language  and  not  legalese;     5)  Have  the  input  and  buy-­‐in  from  all  departments;  and     6)  Be  as  short  and  to  the  point  as  possible.     Step  3:    Select  technologies  that  will  support  your  organization.       Once  companies  have  a  foundational  governance  structure  in  place,  then  IT   departments  and  social  media  technology  groups  can  put  into  place  the  appropriate   technology  tools  to  manage  and  mitigate  risk.    This  should  include  tools  that  allow  the   company  to  have  visibility  into  the  social  infrastructure  (how  many  accounts  and  on     15  
  • 17. what  platform)  of  the  company,  provide  governance  for  those  accounts  around  types   of  content  and  data  that  are  published  across  them,  ensure  compliance  with  internal   policies  and  external  regulations,  and  protect  company  social  accounts  and  platforms   from  being  hacked.    Once  these  platforms  are  in  place,  the  Social  Media  Technology   Group  would  be  responsible  for  training  the  social  media  marketing  roles,  the  social   media  community  management  and  customer  service  roles,  and  as  necessary  legal,   audit,  and  human  resources  roles.       Step  4:    Test  your  organization.       After  the  governance,  the  policies,  and  the  technologies,  companies  need  to  test  and   retest  to  make  sure  that  all  the  moving  parts  remain  in  sync.    For  example,  training   employees  and  agency  staff  on  an  out-­‐of-­‐date  social  media  policy  is  almost  as   dangerous  as  not  having  one.    Not  keeping  track  of  all  of  the  brand  presences  on   social  media  and  allowing  them  to  proliferate  without  control  can  open  the  brand  to   unnecessary  risks.    Not  updating  a  technology  application  to  cover  a  new  platform   can  place  the  company  at  increased  risk.    Companies  should  test  their  ability  to   respond  to  different  social  media  risks  by  running  a  series  of  scenario  exercises  based   upon  known  or  expected  social  media  risks.    These  might  range  from  a  scenario   covering  a  miss  sent  tweet,  such  as  a  personal  statement  on  a  company  channel,  to  a   scenario  involving  an  irate  customer  who  takes  to  social  media  to  voice  their  issue,  to   a  scenario  covering  a  social-­‐media  based  reputation  attack  by  an  NGO,  like  efforts  by   Greenpeace  against  Nestle  and  British  Petroleum.         16  
  • 18. About  Nexgate   Nexgate  provides  cloud-­‐based  brand  protection  and  compliance  for  enterprise  social   media  accounts.    Its  patent-­‐pending  technology  seamlessly  integrates  with  leading   social  media  platforms  and  applications  to  find  and  audit  brand  affiliated  accounts,   control  connected  appliances,  detect  and  remediate  compliance  risks,  archive   communications,  and  detect  fraud  and  account  hacking.     Nexgate  is  based  in  San  Francisco,  California,  and  is  used  by  some  of  the  world’s   largest  financial  services,  pharmaceutical,  Internet  security,  manufacturing,  media,   and  retail  organizations  to  discover,  audit,  and  protect  their  social  infrastructure.                                                                                                                         i  Facebook  Reports  Second  Quarter  2013  Results,  July  24,  2013.   http://investor.fb.com/releasedetail.cfm?ReleaseID=780093   ii  Smith,  Craig.  (September  2013)  By  The  Numbers:  31  Amazing  Twitter  Stats.   September  5,  2013.  http://expandedramblings.com/index.php/march-­‐2013-­‐by-­‐the-­‐ numbers-­‐a-­‐few-­‐amazing-­‐twitter-­‐stats/   iii  YouTube  Hits  a  Billion  Monthly  Users.  March  3,  2013.  http://youtube-­‐ global.blogspot.com/2013/03/onebillionstrong.html   iv  Harvard  Business  Review  Analytics  Services.  The  New  Conversation:  Taking  Social   Media  from  Talk  to  Action.   http://www.sas.com/resources/whitepaper/wp_23348.pdf   v  Fox,  Zoe.  10  Most  Liked  Brands  by  U.S.  Facebook  Users.  Mashable,  Sept  6,  2013.   http://mashable.com/2013/09/06/facebook-­‐brands-­‐likes/   vi  Larcker,  David,  Larker,  Sarah,  and  Tayan,  Brian.  What  Do  Corporate  Directors  and   Senior  Managers  Know  about  Social  Media?  The  Conference  Board,  October  2012.   http://www.gsb.stanford.edu/sites/default/files/documents/TCB_DN-­‐V4N20-­‐ 12.Social_Media.pdf   vii  Lauicella,  Tom,  Stewart,  Christopher,  and  Ovide,  Shira.  Twitter  Hoax  Sparks  Swift   Stock  Swoon,  The  Wall  Street  Journal,  April  23,  2013,   http://online.wsj.com/article/SB1000142412788732373560457844120160519348 8.html     17