Social media risk management in small, medium and large enterprises in the Cape Metropole

Abstract

The research study focuses on the risk management practices and procedures small, medium and large enterprises in the Cape Metropole have in place to mitigate social media risks. Enterprises and employees of these enterprises use social media platforms for business and personal purposes. There usage could have an impact on the enterprise should social media risks materialise due to a lack of formalised risk management practices and procedures. The purpose of the research study is to determine whether enterprises have risk management practices and procedures in place to mitigate social media risks. The research study also expands on the controls enterprises have in place and seeks to gain an understanding of the type of social media platforms used by the enterprise. The research study consisted of a literature review and an empirical study to investigate social media risk management practices and procedures in enterprises. A quantitative research method were used to carry out the required research, by making use of a structured questionnaire to obtain responses from respondents from small, medium and large enterprises in the Cape Metropole. The research results obtained revealed that most enterprises have implemented risk management practices and procedures. However, not all enterprises have risk management functions in place which involves all relevant departments to support in mitigating social media risks, more specifically to monitor and manage adherence to social media policies and procedures. The researcher recommends that enterprises have to enhance their control environment and improve existing risk management functions, practices and procedures on a continuous basis before such risks materialise and potentially damage their enterprise.