Question

what are potential risks organizations face as a result of social media?

Answer 1

Potential risks because of social media are as follows:-

1. Reputation management: Social media may cause a risk to a company’s reputation by creating negative publicity. Legal issues may perhaps arise if a company gives an inappropriate comment about another company on a social media platform for instance.

2. Security Issues: There is always a risk of hacking, spy-ware and bugs amongst others. This means that there is a risk of having confidential company information leaked outside the company.

3. Engaging in two-way dialogue and potential criticism: While social media allows a company to interact directly with customers in real time, it also gives those same customers a public platform to voice dissatisfaction.

4. Trust as part of the culture: In order for employees to use social media in a successful way for the company, trust is a prerequisite. Not having that trust as part of the organizational culture can present a risk when it comes to social media.

5. Wasting company time: Social media can be addictive and there is a risk that employees will spend too much time on it, compromising their work and thus the organization’s business operations.