Auditing Social Media The Practicalities

SOPAC2103 – Session 1B

by Walter.Adamson@KinshipDigital.com

m: +61 403 345 632

Twitter: @adamson

4 March 2013, Brisbane, Australia

Contents

1. Having a Social Media Strategy is Key

2. Governance

3. Auditing Practicalities

Presentation at: www.slideshare.net/kinshipdigital/

About me

Hypothetical

Risk • NOT just PR / brand reputation

• BUT also implications for logistics, retail stores, customer experience,

purchasing, supplier relations, purchasing, government relations, regulators

e.g. ACCC

DO YOU have cross-functional social media risk management plans?

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Objectives

1. To convey the importance of an effective social media Strategy

2. To outline the components of social media Governance

3. To address some auditing practicalities

Key aspects of social media in business

Strategy formulating policy and strategy through researching

your brand, customers, partners and competitors

Intelligence monitoring, collecting and analyzing social data to

make informed, agile business and policy decisions

Communities building ‘owned’ social platforms for listening, support,

building, collaborating, content

Governance social business metrics, ROI, policy and guidelines,

processes, risk management, compliance

About you?

Personal audience poll - show of hands

On which networks are you

active?

Having a Social Media STRATEGY is Key

This is the first question for auditors

Social Media Policy is not Strategy

χ NOT Strategy

χ NOT Governance

But is important, and specifically, it should:

Educate employees, then empower them;

Help employees understand and own the risks;

Hold employees accountable;

Address organization social media account “ownership” and hand-

offs when spokespeople leave.

Good news! There IS a methodology

1.Assess

2.Strategise

3.Create

4.Protect

5.Participate

6.Share

7.Engage

8.Monitor

Social

Business

Framework

Key is to integrate social with business

1. Social strategy which aligns with

business strategy

2. Social business risk which is part of

business risk management and

compliance programs

Regulators ?

Advertising Standards Bureau, ACCC,

Australian Association of National

Advertisers (AANA), ASIC, APRA, etc.

Cross-functional

A social risk management program needs cross-functional input:

Compliance

Technology

Information Security

Legal

HR

PR & Comms

Digital Marketing

Social Media!

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Governance

Social Media Strategy

Regular Reporting of ROI

Mandatory Monitoring of Social Channels

Social Media Policy Plans, Action, Compliance

Management of 3rd Party Vendors

Employee Training

Compliance Protocols

Governance - Heads-Up – Be prepared !

Social Media Strategy Required • A strategic plan with actions and operational descriptions.

• Clear roles and responsibilities whereby the board of directors and/or senior

management spell out how use of social media contributes to the strategic goals of the

institution, while also spelling out what kind of controls will be put in place.

• How ongoing social media risks will be monitored and assessed.

Regular Reporting of ROI • Regular reports to the board of directors and/or senior management, which enable a

periodic evaluation of the effectiveness of the social media program and whether the

program is achieving its stated objectives.

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Governance - Heads-Up – Be prepared 2

Mandatory Monitoring of Social Channels • An oversight process for monitoring information posted to social media sites

(administered by the institution or a contracted third party).

Social Media Policies & Procedures & Compliance • Policies regarding the use and monitoring of social media, and compliance with all

applicable consumer protection laws.

• Social media policies should incorporate procedures addressing risks from online

postings, edits and replies.

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Governance - Heads-Up – Be prepared 3

Manage 3rd-Party Vendors Ensure Customers Are Protected • Customer privacy and security of their personal data are a top concern.

• Institutions working with third-party social media vendors will be required to manage

those relationships within defined parameters to ensure compliance with all regulations

You Have to Tell Employees What’s Okay and What’s Not • An employee training program that incorporates the organisations’s policies and

procedures for official, work-related use of social media, and potentially for other uses

of social media, including defining impermissible activities.

Compliance Protocols • Audit and compliance functions to ensure ongoing compliance with internal policies

and all applicable laws, regulations, and guidance.

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Relevant laws (US) Financial Institutions

• Truth in Savings Act/Regulation DD and Part 707

• Fair Lending Laws: Equal Credit Opportunity Act/Regulation B and Fair Housing Act

• Truth in Lending Act/Regulation Z

• Real Estate Settlement Procedures Act

• Fair Debt Collection Practices Act

• Unfair, Deceptive, or Abusive Acts or Practices

• Deposit Insurance or Share Insurance.

• Electronic Fund Transfer Act/Regulation E

• Rules Applicable to Check Transactions

• Bank Secrecy Act/Anti-Money Laundering Programs (BSA/AML)

• Community Reinvestment Act

• Privacy Gramm-Leach-Bliley Act Privacy Rules and Data Security Guidelines.

• CAN-SPAM Act and Telephone Consumer Protection Act

• Children’s Online Privacy Protection Act

• Fair Credit Reporting Act

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Audit questions

Are there methodologies, techniques and tools in place covering:

• Social Media Strategy

• Regular Reporting of ROI

• Mandatory Monitoring of Social Channels

• Social Media Policy Plans, Action, Compliance

• Management of 3rd Party Vendors

• Employee Training

• Compliance Protocols

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Auditing Practicalities

6 Step Audit Approach

1. Strategy Assessment – overall goals, plans, actions, reporting?

2. Presence Assessment – where are you the social web?

3. Listening Assessment – what data and how managed?

4. Organisation & Internal Culture Assessment

5. Process Assessment – workflow, timeliness, escalation?

6. Governance Assessment

• Policy

• Roles

• Risk Assessment

• Compliance

Practicalities Examine risks by business use case

Recruitment & Retention

Investor relations

Public relations

Marketing / branding

Lead generation

Customer service & complaints

Innovation & product development

Employee relations

Business partner relations

Operational Risk

1. Social media is one of several platforms vulnerable to account takeover and

the distribution of malware.

2. Organisations must ensure that the controls they implements to protect their

systems and safeguard customer information from malicious software

adequately address social media usage.

3. Financial institutions’ incident response protocol regarding a security event,

such as a data breach or account takeover, should include social media.

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Hijacked

Burger King’s official Twitter handle suffered a cyber attack on Monday [Feb 18, 2013].

Hackers switched the branding to that of rival McDonald's and claimed the restaurant

chain “just got sold ... because the whopper flopped.”

The hackers sent more than 25 tweets and re-tweets on the handle, several poking fun at

Burger King, insinuating unethical behaviour about its employees and using

intentionally offensive language and racial slurs.

http://www.foxbusiness.com/technology/2013/02/18/burger-king-twitter-account-hacked-rebranded-to-mcdonald/

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No opt-out !

An institution that has chosen not to use social media must still be

prepared to address the potential for negative comments or

complaints that may arise within social media platforms and provide

guidance for employee use of social media.

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Resources

Awareness

• Mark Pearson @journlaw

• Social media best practice: New guidelines released

Australian Association of National Advertisers (AANA) see http://www.leadingcompany.com.au/technology/social-media-best-

practice-new-guidelines-released/201211283150

• New US Financial Institution Regulation

http://www.ffiec.gov/press/pr012213.htm

About KINSHIP Digital

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KINSHIP Digital is a social consultancy that specialises in understanding, developing and protecting its clients’ reputation, brands, businesses and people in Social Media. Follow us @KinshipD www.kinshipdigital.com

Join the Social Governance

Community

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Easiest way - SEARCH

Walter Adamson Speaker Notes

Walter Adamson is a social media business specialist. He is General Manager Victoria of Kinship Digital

which helps clients attract & retain employees & customers by leveraging social media tools. This

includes reputation monitoring, governance and risk management.

Walter has an extensive background in enterprise and as an independent consultant focused on IT

strategy and advising owners and managers of IT businesses. He was also the Independent Advisor to

the ICT Strategy Board of the Government of Victoria for 4 years.

He has held executive roles as CIO, VP International Business Development, and Corporate VP IT

Strategy, and also worked in Corporate Planning at BHP. Walter established the Internal IT Audit function

at BHP and led it for 3 years, and was one of the first Certified Information Systems Auditors in Australia.

He is also a Certified Social Media Strategist and holds a M.Sc. in Computing Science.

walter.adamson@kinshipdigital.com

Connect on Linkedin http://linkedin.com/in/adamson

Follow me on Twitter @adamson

m: +61 403 345 632

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