Companies that don't actively participate in social media to promote their businesses and build brand awareness still need to address the reputational, legal and operational risks that social media can pose. Why? It's extremely likely that their employees are using social media tools, either at home or during business hours at work, regardless of whether it's employee- or company-owned equipment. In doing so, such employees may unwittingly put their employer at risk. Even non-participating companies need to be proactive in creating social media guidelines or policies for their employees. This can be done with a five-step checklist.

Conduct a broad assessment of general social media activities to look for potential risks. Beyond that general assessment, whenever a social media campaign is contemplated, the organization needs to assess the particular risks of that campaign. Not only should the organization's contemplated campaign align with the culture of the organization and its marketing strategy, but the risks should be weighed against the benefits, with both being articulated as clearly as possible.
Identify the key players who will be responsible for developing, executing and monitoring its social media strategy. An active strategy will require a great deal of time and resources so it's important to decide which departments will foot the bill for staffing, technology and other expenses. Also, companies should identify a senior executive or employee with the political wherewithal to make time-sensitive decisions as necessary.
Draft a simple but comprehensive social media policy or set of guidelines tuned to the company, its customers and its industry. This guideline is important even if a company decides to grant "official" social media access solely to designated spokespersons. Separate guidelines are still needed for employees using social media while not at work. This social media policy should be reviewed by the organization's human resources, legal, information technology and communications departments. Also recommended is a review by an independent law firm.
Formally address the risks of social media participation with company employees. Because employees actually pose the biggest risk to a company—albeit, usually without meaning to do so—it is essential to provide regular educational training programs regarding the dangers of damaging the company by using social media on the job or on their own time.
Create a social media agreement that employees review and sign annually as a condition of continued employment and as part of their employment contract. Such an agreement should be updated annually, or as often as is warranted, to address changes in social media that may impact business in new ways.

The business benefits of social media participation can be substantial, while the cost of non-participation, or opting out, may mean anything from losing business to losing touch with valued customers and important industry trends. Of course, there is also much to lose by not responding proactively to the many risks posed by social media. To ensure corporate social media safety, risk managers should analyze the company's unique social media safety needs, monitor the social media landscape for potentially worrisome content and secure adequate insurance coverage for the company's social activities. Taking these steps to mitigate the reputational, legal, and operational risks inherent in social media use, corporations will be well positioned to reap the enormous business benefits of social media participation.

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5 Steps to Mitigate Social Media Liability

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