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Risk Management Needed for Social Media Campaigns

There are a variety of risks organizations should consider when it comes to so

Besides losing valuable man hours to employees checking out their Facebook and Twitter pages, there are other risks businesses face from social media.

Social media platforms have become an integral part in nearly every business's marketing campaigns over the last several years, and with its burgeoning use in corporate culture, organizations need to extend their risk management practices to these communication outlets, according to a recent report from research and advisory firm The Altimeter Group.

"To set up an effective social media risk management process, organizations need to focus on: 1) identifying social media risks; 2) assessing and prioritizing those risks against limited resources; 3) mitigating and managing those risks to reduce the impact on the organizations; and 4) evaluate emerging risk against mitigation efforts," the report said.

There are four basic risks social media presents to businesses, but chief among them is the potential for damage to a brand or reputation. A recent survey of executives with corporate finance jobs indicated two-thirds are most concerned about reputation than any other kind of risk, according to CFO.com.

Other risks identified by the report include the possibility of a confidential information leak, compliance violations and identity theft or hijacking. Creating a decision-making framework to deal with risks as they are identified is the best way to mitigate the threat of social media, according to the report.