Social media is now considered a top corporate risk among communications leaders, exceeding cyber threats, extreme weather, and supply chain disruptions according to a new survey released today by Crisp and Kroll. The survey reveals an increase in new and unknown risks accelerated by digital chatter, which makes it more difficult to identify or mitigate issues before they become a crisis.
The Communications Leaders Risk Survey, a collaboration between Crisp, the most trusted provider of early-warning risk intelligence, and Kroll, the world’s premiere provider of services and digital products related to governance, risk and transparency, asked communications leaders in North America and Europe, most from $500M turnover companies, about their expanded role as risk mitigators and resilience builders in a world of accelerating digital change.
In the wake of a global pandemic, social unrest, economic recession and political division, 75% of respondents say they are looked at by their companies as a strategic advisor on risk. Communications leaders are first line defenders, with 88% saying they are taking on greater responsibility for identifying and mitigating risks than before. As such, communications leaders are quickly becoming the business’ first port of call when it comes to risk mitigation.
This is largely due to the network effect of harmful digital chatter, which often originates in online groups on the deep web, concealed from communications teams that don’t have adequate access or bandwidth to identify it. In today’s climate where more than two-thirds (68%) of respondents expect to encounter new and unknown risks, it’s difficult to keep pace.
“Today’s corporate risks often originate or are amplified by online groups that exploit the social web to coordinate and execute their harmful narratives,” said Vikram Sharma, president of Crisp. “Social media, messaging, and discussion platforms are fueling a rise in bad-actor, agenda-driven groups and the survey highlights why communications leaders need new intelligence capabilities to stay one step ahead of the individuals and groups behind these new and unknown risks.”
In fact, the survey confirmed that while most organizations are monitoring the surface web for known risks, few look beneath it. Respondents say their organizations monitor an average of only 6.4 social media channels, but few review closed social media channels, forums, messenger apps, or alt tech platforms where the majority of digital chatter and online group planning and coordination takes place.
It’s a topic getting wider attention from leadership teams, in accordance with respondents who cite the volume (55%), variety (57%) and velocity (60%) at which digital chatter spreads as a top board concern. Communications leaders surveyed said the ramifications of identifying and responding to a risk too late include damage to a corporate or brand reputation (93%), followed by negative publicity (92%), employee morale/wellbeing/recruitment (73%), customer experience (59%) and financial performance (46%).
“Companies spend years creating brands built on trust and loyalty, but digital chatter and the risks that can arise as a result of this can erode that almost overnight,” said Benedict Hamilton, managing director at Kroll. “The speed at which news spreads on the web means that firms are working under an increasingly tight timeframe to identify and mitigate risks that arise through such sources. Social media risk should be viewed as a board level priority, with businesses adapting their risk management process and investing in the right technologies that help them detect and mitigate risks at the earliest stage.”
This is further reinforced by Forrester, in a commissioned study on behalf of Crisp, in which they analyzed 75 annual 10K reports filed with the U.S. Securities and Exchange Commission, which says, “all 75 brands emphasized the importance of environmental, social and governance (ESG) priorities, 99% discussed the importance of protecting reputation, and 67% recognized that threats to reputation can originate in and are both accelerated and worsened by social media.”
While most respondents (94%) agree that digital chatter shortens the window of time to react and respond to risks, 88% agree that this same digital chatter is an essential source of risk intelligence for identifying and mitigating issues before they become a full-blown crisis.
The early signals from groups and individuals found in digital chatter not only identify risks before they develop into crises, they also provide companies with valuable time and insight to mitigate those risks and better prepare to minimize potential brand or corporate reputation damage and revenue losses.
Unfortunately, 75% of respondents were unsure if their company is equipped to get ahead of risks surfacing online, and more than two-thirds (69%) say it is getting more difficult to anticipate or identify risks surfacing through digital chatter. Further, 73% of survey respondents say not enough funding is invested in new risk intelligence solutions to counter this business critical challenge.
With more than three-quarters (77%) of communications leaders predicting greater uncertainty this year, the Communications Leaders Risk Survey reinforces the high stakes for companies moving forward in a world of accelerating change, and the need for communications leaders to gain an early-warning risk advantage.
