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Security Leadership and Management

Social Media Forces Risk Management Changes in At-Risk Countries

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September 30, 2013

The speed at which political instability spreads is now inextricably linked to social media, as disaffected populations around the globe turn to this powerful outlet to drive demonstrations, according to a new Marsh Risk Management Research briefing, Social Media Heightens Political Risks in Emerging Markets.

This means that the “rear view mirror” approach to risk management, which is frequently used by multinationals to forecast risk by examining past events, is no longer sufficient for operations in at-risk countries.

According to the report, Marsh suggests that organizations in countries with high levels of political risk should:

  • Review their business interruption and supply chain resiliency plans, evaluate the impact of potential political risk events on their own operations and on those of their customers and suppliers.
  • Ensure that they can communicate potential problems to employees, customers and suppliers, and review crisis communication plans to ensure the safety of employees.
  • Review their credit risks and credit control policies and procedures. Ongoing financial monitoring can identify strengths and weaknesses in their credit risk management processes, enabling firms to avoid bad debts and improve credit flow.
KEYWORDS: international security plan protest security security risk management social media security

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