Governance structures and processes for managing social media risk will be for naught if an insurer is incapable of monitoring social media networks in real time. Fortunately, there are many IT tools that can help insurers identify social chatter about their brands and organizations.
Improving the effectiveness of IT systems in the context of social media risk management is primarily about improving the management and analysis of data and using new technologies to monitor social media sites. Here are a few capabilities that are important for insurers to develop to manage and monitor social media data effectively.
Social media data mining and capture: A number of tools are now available that enable companies to mine data across social media platforms and look for particular kinds of information. Web crawlers can extract user data from social networks. Data mining and analytics, meanwhile, can turn the apparent randomness and chaos of millions of posts and tweets into information to guide marketers and business strategists.
Text analytic engines: While crawlers and other tools gather the information or mine it, text analytic engines find meaningful patterns in the data to deliver insights. These engines can also segment information to support better decision making—decisions based on hard data, especially unstructured and big data.
Data security and storage: Social media regulations and technologies present new challenges for storing data—challenges related to architectures and security. These challenges are complicated by the fact that social media is generally based on third-party cloud applications—meaning that a company cannot itself control the security of those applications.
Reporting and dashboards: This enables companies to do reporting in a more effective and timely manner. More comprehensive reporting can bring multiple performance dimensions together into a dashboard. This enables management to look across factors, see where they are vulnerable, and then make better decisions.
Employee monitoring and management: Other technologies help companies monitor employee activity on social media to assess business risks. For example, many insurers are looking into compliance-related tools that prevent employees from saying anything on social media that violates a particular regulation. Others are using tools that control access to social media applications, or capture and archive all social media activity to support compliance with regulations.
In my concluding post in this series, I’ll look at capabilities that underpin the governance, processes and systems of effective social media risk management.
Catch up on earlier posts in this series here.
Download the full report: A Comprehensive Approach to Managing Social Media Risk and Compliance