Social media is a term used to define the relatively recent phenomenon of mass personal publishing most often intended for public consumption and typically conducted in an interactive and conversational style. Social media‘s rapid growth – it is now the most popular online activity – has garnered the attention of the commercial space, including financial institutions hoping to meet their customers‘ evolving needs and expectations through this medium.
|Social Media and Risk Mitigation - June 2011|
This paper is intended for a general audience, from business practitioners to compliance, risk and legal professionals, primarily from a United States perspective. It provides a synopsis of the major themes an FI should consider when using and deploying social media and is best used as a reference guide, delving into the situation or organizational section that is most appropriate to the reader. To assist readers in identifying which sections are most applicable to their purpose and expertise, a risk matrix is provided in Appendix E.
This paper addresses risks and mitigation methods for financial institutions using social media from three perspectives: To communicate with or service customers, By employees within a financial institution in personal and professional capacities, and By employees or contractors outside the office.