About Hilary Tuttle

Hilary Tuttle is the managing editor of the Risk Management Monitor and Risk Management magazine.
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Online Exclusive: How to Protect Yourself on Social Media

Add Friend on Social Media

In the October issue of Risk Management, social media and eDiscovery expert Adam Cohen chatted with me about the biggest corporate risks in sites like Facebook and Twitter, and outlined some best practices for developing and enforcing a social media policy. But behind every account sits one major risk that’s hard to control: a person.

Not all of Cohen’s advice could make the magazine, so here are some of his extra tips for how to mitigate the risks of personal social media – both to protect your company and to protect yourself.

What should employees know about their personal social media accounts?

All employees need to recognize one thing: they shouldn’t have any expectation of privacy in information that they post on social media. Even if they think they’re limiting information to a select group of friends, this stuff can all be disclosed in litigation and there are many cases where courts have required so-called non-public social media information to be disclosed. It’s fairly routine at this point.

Many employers – certainly all the major companies – have specific social media policies that give very particular and clear direction to employees on what they can and can’t do when it comes to company information on social media. That extends beyond just corporate social media and includes anything they’re doing on social media that could impact the company. And many employers are going to take the position that they have the right to monitor employees’ social media.

How can employees protect themselves?

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One of the key things employees need to do to protect themselves is only disclose information they would be comfortable disclosing to the entire world and they should not to go anywhere near business information. Being safe on this front may include publishing a disclaimer that an individual is not representing the views of the company. What else can they do? Follow the employer’s social media policy to the letter and, any time they have a question about whether one of their social media posts may be affected by the policy, they should ask. Most policies will provide a resource for questions, whether it’s a general counsel or a compliance officer or immediate supervisor.

Those are probably the main things: not having an expectation of privacy on social media and treating everything you post like it’s private, and following the policy to the letter and getting clarity and permission on anything that you think could be a violation of the policy.

As we’ve used social media more, do you think employees are using social media any more wisely?

I think it’s still too early to say that there are any improvements there. Litigation that involves social media as a factor in one form or another is just exploding. There is no information that would suggest in any way that employees have increasing awareness of this and are taking that into account when they go on social media.

What is the first thing you look for when trying to evaluate a social media account for potential liability or wrongdoing by an employee?

The first thing I would look for is the nexus between the social media and business information. Personal social media may be a concern from the perspective of the employee being seen as representing the company, even if it’s just sullying the reputation of the company – and that’s especially true the higher-ranking the employee is – but the first thing to look for is whether the employee discussing matters within the scope of their employment. And that’s difficult to monitor – the social media world is a big world, especially for a company with a lot of employees.

So then general personal misuse is relatively benign to you?

The other stuff is not benign at all. An employee who behaves in an inappropriate way on social media or is violating intellectual property rights, copyright or trademark of some other company – or, say, badmouthing a competitor – well, that’s not benign. If they’re engaged in criminal activity on social media or they’re defaming someone, that’s certainly not benign because they work for a company and that can impact the image of the company or lead to serious repercussions. That only gets more serious if you’re a prominent or higher-ranking executive.

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Is it benign? No, but you can’t control that.

Although, I should note, the National Labor Relations Board has said that employees have to be permitted to discuss their working conditions with other employees and that the employer can’t really control that, and if the social media policy purports to prohibit that discussion, the policy is not valid.

What is the most useful evidence in building a case against an employee?

Well, it depends on the kind of case, but social media has now been used as evidence in hundreds of cases. The most devastating use of it so far has probably been in the personal injury arena.

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Plaintiffs have made claims of disability and emotional distress and the defendant has been able to obtain discovery or has retrieved public social media that completely contradicts those claims – for example, a video of the complainant surfing. There are a lot of cases like that and that’s just an example of really devastating use of social media.

Who do you friend at work?

Well, you don’t friend subordinates – that’s a no-no. You can get yourself into all kinds of trouble there with people making claims about what kind of a relationship you have with them. You don’t friend people at work whom you don’t know – just as you don’t in your personal life. You shouldn’t assume that, just because this person works with you, they’re the kind of person with whom you want to be associated. You also don’t want to friend somebody who you don’t want to have access to your social media. If you have privacy concerns, you want to maintain the upper limits of your reasonable expectation of privacy, so don’t friend people you’re afraid might use that access against you in an invasion of privacy.

Twitter’s Data Mining Profits Show Lesser-Known Social Media Risk

Data Mining

In an interview for this month’s issue of Risk Management magazine, lawyer and social media specialist Adam Cohen cautioned businesses that the risks of social networking sites extend beyond explosive posting faux pas.

“In most cases, corporations don’t realize that what they put on these social media services is all subject to the privacy policies and terms and conditions of the services,” said the eDiscovery expert and author of Social Media: Legal Risk and Corporate Policy. “Those provide a shocking amount of access by the social media services where they may take your data.”

As Twitter prepares for its much-anticipated IPO, the social media giant has released a torrent of information on its financial standing and practices. One of the most important tidbits for users concerns the site’s lesser-known side-business: data mining. In the first half of 2013, Twitter made $32 million by selling its data—namely, tweets—to other companies, a 53% increase from the year before.

So far this year, the company has raked in $47.5 million from selling user data to companies that analyze the social media posts for insights into news events and trends. Because of its real-time nature, Twitter is the primary contributor to data mining, though other social networks are frequently used in professional analysis.

This analysis is then sold to businesses for a slew of uses. “The types of ways that businesses are using Twitter data has gone deeper and deeper,” Chris Moody, the CEO of original Twitter data mining company Gnip, told Time. “We’re seeing it in supply chain and inventory management. It’s not just consumer brands that are engaging on Twitter.”The United Nations uses Twitter algorithms to pinpoint areas of social unrest. Burger chain Five Guys used “social intelligence technology” from New Brand Analytics to monitor quality in restaurants across the country and evaluate the appeal of a new fry size offering. Wall Street subscribers to one service, Dataminr, got a leg up on the S&P Index drop following the Navy Yard shooting. Five minutes before the news broke, users received an alert to take action after the company’s algorithms picked up on eyewitness reports and deduced from their timing, influence, and location that something urgent was taking place.

Clearly, there’s money to be made on both sides. According to the Wall Street Journal, the “social listening” business is booming, partially funded by millions of dollars in venture capital. Research firm IDC estimates that the entire “big data” market has grown seven times as quickly as the information technology sector as a whole, and may be valued at $16.9 billion in two years.

Data is mined for a variety of purposes – ones your company may even want to explore – but while there are benefits to the ends, the means translate into cyber exposures of which you may never know the details or depth. While the reputational risk of social media garners a lot of the attention – and rightfully so – there are increasingly tremendous exposures that lay in the forms just to sign up. With Twitter going public, there will only be further incentive to maximize revenue by selling user data, and more reason to approach corporate social media with caution.

Spencer Educational Foundation Gala Raises Record $870,000

Spencer Gala Honorees Michael Kerner and Patrick Ryan with Spencer Scholar Lakenya Young

Spencer Gala Honorees Michael Kerner and Patrick Ryan with Spencer Scholar Lakenya Young

 

At its recent annual gala, the Spencer Educational Foundation raised a record $870,000 from leaders of the risk management industry. The dinner also drew its largest crowd yet to honor Zurich’s Michael Kerner and Ryan Specialty Group’s Patrick Ryan.

Kerner lauded the foundation while encouraging colleagues in the insurance industry to embrace and prioritize the role of younger entrants to the field. “We struggle as an industry with reputation, unfortunately,” he said. “To this day, for most people that get into the business, it wasn’t necessarily their childhood dream to be in insurance. We don’t do a good enough job as an industry in promoting the value that we bring to the economy and to business on the whole, or the exciting and fun careers you can have in the insurance space.”

Dedicated to aiding future risk managers, the Spencer Educational Foundation awards scholarships in risk management and insurance, runs student internship programs and issues grants to facilitate risk management course development at schools across the country. As of this year, according to Chairwoman Peggy Accordino, the foundation has awarded over $5 million to students.

Applications for 2014 Spencer Scholars, internships, and the Risk Manager in Residence program are now live, with scholarship applications due by January 31. Applications for employers to participate in the student internship program are also available, with a deadline of February 14.

Colorado Flood Damage Estimated at Over $2 Billion

Colorado River at Flood Level

Economic damages from the recent flooding in Colorado are expected to surpass $2 billion, according to a recent report from catastrophe risk modeler Eqecat. Most of that financial burden will fall on residents because very little flood risk is insured in the state.

Between 1,500 and 1,800 homes have been destroyed and thousands of homes have been damaged, leaving more than 10,000 people displaced. The estimated total cost to repair destroyed homes averages $300 million and early reviews of residential flood damage indicate an average of $20,000 to restore each of the 17,500 flooded homes that were not destroyed. But because of exclusions to the basic homeowners insurance policy, most of the losses will not be covered by insurance.

Historically, a very small portion of homeowners purchase flood insurance on homes outside of the 100-year flood zones outlined by the U.

S. National Flood Insurance Program, which provides insurance as part of a mortgage. Of the 17 counties impacted, most of the areas are not within defined flood zones.

President Obama declared a major disaster in nine of the hardest-hit counties, making residents eligible for direct federal grants to repair their flood-damaged homes, replace personal property and provide rental assistance, Reuters reported. This status also allows workers left jobless by the disaster to claim unemployment payments of up to 26 weeks and makes special low-interest loans available to farmers and small businesses to help cover their uninsured flood losses.

While these measures may help with immediate need, the extensive damage will require months of recovery and more rain is currently expected to cause rivers to crest another foot above flood stage today. With hundreds of miles of road flooded and many bridges and dams damaged or destroyed, Eqecat estimated losses to commercial and government properties and related expenses to total around $1 billion. Colorado officials announced a Dec.

1 target to complete temporary fixes to at least some of the heavily damaged roads, according to the Weather Channel. State highway crews and National Guard troops have already begun work to repair highways to mountain towns cut off by the flooding – roads that will only lead to more treacherous situations in remote areas as winter approaches.

Residents of one town have been told they will be displaced for up to six months, according to NBC News. Lyons town administrator Victoria Simonsen told a public meeting last week that E. coli bacteria had contaminated the drinking water system and the wastewater system incurred at least $1 million in damage, leaving the town unlivable for the foreseeable future.

This morning, authorities announced the eighth confirmed death from the flooding. Reuters reported that the search for hundreds of missing residents is winding down, with all but a half-dozen people now accounted for.