When it comes to regulated markets, compliance is a major issue, especially when it comes to social media, it worries compliance officers and has held back the use of social media in regulated markets.
So, what keeps compliance officers up at night and what do they do about it.
In short, anything posted on social media is amplified and can have an impact on the brand and the reputation and once the cat is out of the box, getting it back in the box is rather difficult.
As Warren Buffet said:“It takes 20 years to build a reputation and five minutes to ruin it.”
Of course, there are ways to mitigate risk. For one thing, a social media policy explaining who can post on social media sites, how they post and what they can or cannot say, what requires compliance approval before posting. Yous social media policy should also define the steps to follow in case of crisis
The other challenge is what employees post about the company on their personal social media accounts. Their post can be perceived as representing the views of the companies and can have an impact on the company reputation and/or have repercussions from the regulatory authorities
What makes it even more challenging is that be it in healthcare or financial services there are no set social media rules. The regulatory authorities (FDA, FINRA, SEC, OCC and others) have not created a framework to regulate social media, they have only issued guidance on how to apply traditional communication with the public regulations to the electronic era and social media. The guidance seems to be a lot clearer though in the financial markets; in the medical market, the FDA is still going back and forth and the guidance can be confusing at best.
In addition, social media platforms are diverse and so are the posting modes and the number of character allowed creating challenges especially when it comes to disclosures.