How can Social Media dramatically impact your reputation?

Social networks present enormous branding opportunities, but also critical reputational risks to businesses, according to an August 2012 study by Altimeter Group. When asked to estimate the level of risk that social networks present for businesses, 35% of the respondents – for whom social media risk management is their primary or a significant part of their responsibility – identified reputation or damage to the brand as a critical risk. Other critical risks include: release of other confidential information (15%); loss of intellectual property, legal, regulatory and compliance issues; and disclosure of personal data (each at 13%); and identity theft and/or highjacking (12%).

To read the full report, see “Guarding the Social Gates: The Imperative for Social Media Risk Management”.

While these numbers themselves are quite enlightening, what is most shocking is that 1 in 3 companies do not assess  their social media risk at all.  With the world changing so rapidly, and control of the message often being usurped by the consumer, it is not surprising that we often get to hear horror stories about brands that ultimately cause significant damage to their reputation – and with little corrective action being undertaken by the brand owner.

Social media is all to easy to interact with, whether you are the brand or the consumer.  And it is that ease of use, and impact that is created that becomes the magnet, regardless of what that magnet draws you towards.  It is part of the new fabric of our society however we cannot ignore the warning signs.  We must continue to guard against the threat of people with alternative agendas and take social media seriously – not just as a game to play.

Companies that continue to pursue business growth need to use all the tools available to them – and that includes social media and all the potential ills that come along with it.  However, manage your risk carefully – don’t ignore it and growing your business will become second nature.

Neville Pokroy consults in the areas of strategic marketing planning, as well as in the development and execution of marketing strategies and plans. He assists companies who require marketing expertise to plan and fully execute marketing programs.   He helps them make good choices, particularly with regard to the emerging technologies.  If you want to have more choice in marketing your business, set yourself apart, and increase the odds of generating additional revenue for your business, call (905)886-2235, email: neville@mastermindsolutions.ca or visit our website.  Please follow me on Twitter: @smaaketer