The ever growing challenge of managing risk within social media activities remains a topic of concern for risk management teams. This focus of risk mitigation potential is not only a concern of financial institutions.
It is also a concern for many organizations now using social media in a variety of ways, including marketing, providing incentives, facilitating applications for new accounts, inviting feedback from the public and engaging with existing and potential customers — for example, by receiving and responding to complaints.
Very recently, the Federal Financial Institutions Examination Council (FFIEC) released proposed guidance on the applicability of consumer protection and compliance laws, regulations and policies to activities conducted via social media by banks, savings associations and credit unions, as well as non-bank entities supervised by the Consumer Financial Protection Bureau and state regulators.
This proposed guidance outlines social media risks banks should address, including compliance and legal considerations, payments, consumer privacy and reputational and operational concerns.
The FFIEC is currently inviting comments from the public on any aspect of the proposed guidance.
Click here to view the FFIEC’s — “Social Media: Consumer Compliance Risk Management Guidance” — draft document and add your comments to this proposed guidance document.
The following link offers more details on this effort to align social media with risk assessment and management activities –and — it might well be worth passing along to those risk management, information security and cybersecurity risk team members in your organization.
By: Ben J. Carnevale, Contributing Editor