Social Media Risk Control

Even if your organization is not currently marketing through social media, it will be…

Even if your organization is not currently utilizing social media for market research, it will be…

Even if your organization’s leadership is not currently communicating through social media, it will be…

Please understand, Someday Social Media (Technology) will be an intrinsic part of every corporate culture.

Where is the Risk?

Remember When This Was Cutting Edge?!

In terms of Social Media (The Internet), the assets at risk are not physical, but rather data, information, proprietary software, media lists, portfolios, to name a few.  George Redenbaugh, (Assistant treasurer and senior director of risk management for eBay), expressed this opinion in the Insurance Journal, the intrinsic assets of a Company are changing, Data and how you connect the data become the most important assets.  This means that traditional insurance methods do not apply.  Insurance Carriers and Agents must adapt at the same speed that new Technology is produced.  Currently, this is not the case.

According to Travelers Insurance Risk Control approximately half of the adult U.S. population is actively using social media websites.  These adults spend on average 7 hours a week using social media sites such asLinkedIn, MySpace, Facebook, Twitter, YouTube, etc. For adults (think employees) comfortable these social media platforms that number increases drastically.  Companies can try to block usage of these sites during the work day, but Mobile Internet applications on iPhones, Blackberry, Droid, etc make control impossible.

See Cyber Liability

The Rub

For many 21st Century companies physical assets no longer hold the greatest Loss Value.  This is especially true for Technology Companies, many of whom derive their entire Organizational worth from the data, information and intellectual property they control. Does your Insurance policy provide coverage for the recovery of such property?  Are you 100% sure?  Would you bet your company’s future on it?

Many Insurance Carriers are just starting to tackle the Technology Industry and many more write policies without a true sense for Electronic Data Asset Value.

Be Aware of the deficiency in understanding of Technology Risks throughout the Insurance Industry.  Talk in-depth with your Insurance Professional.

I have much more to come on the Technology Industry.  Please check back for updates…

Disclaimer:

This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions take or not taken by the readers based upon such information.

Thank you,

Ryan H.

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