Social Media Creates Compliance Risks
Over the last decade, enterprise social media has evolved from an appealing concept to an absolute necessity. Businesses are investing in new tools, systems and frameworks for connecting employees, customers and business partners. According to social media security provider NexGate (a division of security firm Proofpoint), the average Fortune 100 company it studied in a social media analysis has more than 320 branded social accounts, with more than 200,000 followers and 1,500 employee participants. Yet, all this opportunity also introduces significant compliance risks. In the United States alone, the FTC, SEC, FCA, FFIEC, FINRA, FDA, ABA and others have updated existing regulations to include specific social media provisions. A new report from the company, "State of Social Media infrastructure, Part III," examines this topic in detail. Among the issues it addresses: the number and frequency of compliance incidents, where and how incidents originate, and what is required to build a framework that minimizes the risk of violations and problems. Following are some of the key findings from the report.