Social media has created significant opportunities for organizations to connect with their customers and the overall market. It has also created a whole new set of risks for heavily regulated organizations such as financial services institutions. Along with the usual array of concerns faced by all businesses in the social media realm, financial services organizations face an even higher level of scrutiny from regulators and consumer watchdogs.
Social media, and leveraging social business processes to build relationships internally and externally, is an emergent landscape where, quite literally, the rules are still being written. While social media has the potential to improve market efficiency, risk management is critical, and federal regulators are taking steps to place social media risk management top of mind for financial institutions.