Risk managers fear social media

risk and confidential information, is a matter of great concern for European businesses, according to a study by the Federation of European Risk Management (Ferma), in conjunction with the Institute of Risk Management, Insurance Insight reports.

For business in general, reputation risk from social media was cited as a material risk by nearly 50% of respondents, and loss of confidential information through social media by 20%.

These concerns ranked social media along with non-malicious operational IT risks, theft of customer information and malicious interference with IT systems as the greatest cyber threats to business in the eyes of risk professionals.

"Companies have to learn how to live in this new environment where information is available immediately anywhere, where private and professional life is merging, and where the balance of authority is shifting," explains Michel Dennery, Ferma vice-president, in a Warc report.

To date, 65% of organisations have created formal guidelines covering their employees' use of social media, and 14% are currently in the process of implementing such policies.

Insurance Journal states that responsibility for dealing with these emerging cyber threats has largely fallen on risk managers, who are widely involved in managing cyber risks in addition to IT security.

Additional responsibility also falls on legal and company secretarial, “who take part in less than 20%; public relations 14%; human resources less than 6%, and investor relations just 4%”.