Who wants to be embarrassed? Reputational risk drives social media processes

From a C on a restaurant door to a public lawsuit, embarrassment may be the most effective way to make food safer.

In the handwashing world, it’s a combination of shock and shame.

public.embarrassmetAnd that seems to work with food suppliers.

Wall Street and Technology reports that in a recent study, reputational risk exceeded compliance as the top concern for financial services organizations with respect to social media.

Though compliance drives so many decisions in financial services, that’s entirely not so with social media. Instead, reputational risk is a greater concern, according to a recent survey of audit professionals.

According to the 2014 Internal Audit Capabilities and Needs Survey by Protiviti, a global business consultancy owned by Robert Half International, financial services respondents identified brand/reputational damage as the greatest risk posed by social media. Compliance came in a distant second, with data security ranking third.

Drilling down, 53% of financial services industry respondents gave reputation risk a “No. 1” ranking among the hazards. By contrast, 19% named compliance as the greatest risk, and 9% selected data security.

The survey drew responses from 600 internal auditors representing all types of industries. Of those, 110 were drawn from financial services institutions; 76% came from US firms.

This all applies to food safety risk.

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About Douglas Powell

A former professor of food safety and the publisher of barfblog.com, Powell is passionate about food, has five daughters, and is an OK goaltender in pickup hockey. Download Doug’s CV here. Dr. Douglas Powell editor, barfblog.com retired professor, food safety 3/289 Annerley Rd Annerley, Queensland 4103 dpowell29@gmail.com 61478222221 I am based in Brisbane, Australia, 15 hours ahead of Eastern Standard Time