Companies expect to see corporate use of social media expand over the next year, including in marketing efforts, but many do not have a plan in place to deal with the risks.
Financial Executives Research Foundation Inc. (FERF), working in partnership with Grant Thornton LLP, developed a 23-question online survey and conducted in-depth interviews to produce a report, Social media and its associated risks.
One hundred and forty-one executives from public and private companies completed the survey, which was conducted during August and September 2011. Key interview findings indicate the speed with which social media has grown in the last five years caught many executives by surprise.
Almost half (48%) of the executives responding to the survey felt social media would be an important component of corporate marketing efforts going forward.
More than half (53%) of respondents predicted the corporate use of social media would increase significantly over the next 12 months.
And yet, companies clearly weren't yet prepared for the risks associated with the use of such media.
For example, more than three-quarters (76%) of respondent companies do not have a clearly defined social media policy.
And more than half (61%) of respondents indicated their organizations do not have an incident management plan to help them deal with instances of fraud and/or privacy breaches.
While many companies do have e-mail communication and technology usage policies, very few companies have policies that specifically address social media governance and risks.