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Social media is a growing risk: Deloitte survey

Many see risk management as a C-level issue

70% of Mid East users voice their opinions on social media sites
70% of Mid East users voice their opinions on social media sites

More than one in four (27%) executives cited social media as an escalating concern in a new survey on risk management approaches from Deloitte and Forbes Insights.

“Social media wasn’t even on the radar a few years ago—now it’s ranked among the top five sources of risk—the same level as financial risk,” said Fadi Sidani, partner in charge, Enterprise Risk Services, Deloitte Middle East.

The responses may be attributed to the findings of a separate Arab Media Outlook/Deloitte report, which revealed that in the Middle East more than 86% of active Web users use social media to get news, information and advice, and 70% of users voice their opinions on sites.

“The rise of social media is just another contributor to the volatile global risk environment that companies are being forced to navigate. The current marketplace seems to require that global organisations be nimble in their risk assessment approach,” said Sidani.

The Deloitte and Forbes Insights survey also showed that many feel risk management is a C-level responsibility. Of those polled, 26% left the issue with the chief executive officer, with 23% pointing to the chief financial officer or treasurer. Official risk officers were in third place, with 19%.

Nine out of 10 executives said their organisations expected an overhaul of risk management procedures to be given priority by 2015.