Research conducted by Grant Thornton and the Financial Executives Research Foundation finds that senior financial executives recognize the importance of social media for marketing purposes, but many have not yet caught up with internal policies and procedures.
More than half, 53 percent, of respondents to the survey said they predict that corporate use of social media will increase over the next year. However, 76 percent of respondents said they don’t have a clear social media policy in place. And 61 percent said they don’t have a plan to deal with a privacy breach or fraud. So if you were wondering why these sorts of crises keep popping up, look no further!
“Management often thinks of breaches as stemming from lost laptops or hacking events,” Mark Sullivan, forensic and litigation services principal and practice leader at Grant Thornton in a statement. “These are usually brought to someone’s attention immediately after the event. Social media allows for small disclosures over a period of time that, when taken in aggregate, could run afoul of applicable regulations.”
Echoing comments made by Benno Marbach when we spoke with him about the North American CMO Conference (happening today!), the report says many execs have been surprised by the speed and proliferation of social media.
Respondents included 141 senior financial executives who completed an online survey in August and September. You can download the entire report, “Social media and its associated risks,’ here.