Social Media s Effects on Internal Auditors

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1 Social Media s Effects on Internal Auditors for IIA Nashville Chapter April 6, 2011 Chase Whitaker, CPA, CIA

2 Session Objectives Introduce / review social media tools Discuss social media applications for business and internal auditors Discuss the state of social media policies and their implications for organizations Provide resources to advance the conversation about social media

3 Stats/Visits 150 million blogs: 84% of social network sites have more women than men 140 million tweets on Twitter per day million users on Facebook. 50% of Facebook users log-in every day 2 billion videos YouTube serves in one day 12.2 billion videos viewed per month on YouTube in the US (11/2009) 82% of embedded videos on blogs are YouTube videos

4 Auditors Dig Numbers, Right? 40% of organizations blocked social media sites in % believe social media can enhance customer relationships and build brand reputation 60% believe such tools can enhance recruiting 53% of employees say their social media pages are none of their employers business 60% of employers believe they have right to know how employees portray themselves on-line Source: and & 2010 Ethics & Workplace Survey

5 Is the organization linked in? Survey: Organizations in the dark about tech-savvy employees Effects on recruiting, retention ti & efficiency? i 50% of devices used by employees co-mingle personal and business data About 33% of organizations plan to fund employee purchases of devices The-Dark-About-TechSavvy-Employees

6 Is the organization linked in? 33% of organizations say use of consumer tech is relevant in workplace yet 80% of employees say consumer tech devices are important to their doing business Business use of Facebook, Twitter, Blogs expected to grow 10-30% over next 12 months yet 40% of organizations don t have social media policy The-Dark-About-TechSavvy-Employees

7 What does your organization do? Market and Sell Support existing customers Hire and Develop People Manage Risk Other organization-specific objectives

8 Does use of Social Media align? Listen first Do good things Share and add value Don t spam Be authentic Give more than you get Market & sell Support existing customers Hire & develop people Manage risk Other organizationspecific objectives

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11 LinkedIn LinkedIn is used by 80% of companies as primary source of recruiting new job candidates. LinkedIn Discussions Examples: Project Management Institute Nashville Association of IT Professionals Nashville TeamMate Community

12 LinkedIn Groups Link

13 Tweeters with accountability themes Compliance Week Francine McKenna SAP/Business Objects Norman Marks ACL s Peter Millar Joe Oringel Jim Kaplan David Hoelzer Richard Chambers IT Audit Security

14 Really? They re on Twitter? Industry Groups Natl Assn of Insurance Commissioners Association of Certified Fraud Examiners TheACFE) Institute of Internal Auditors ISACA and many chapters Media Forbes Wall Street Journal CFO Magazine Authors / Leadership / Creative Thought Phil Baumann John Maxwell

15 Facebook Recruiting Research / knowledge sharing Building community / loyalty How NOT to use Facebook Personal? Private? Or is it Public?

16 Challenges & Risks Sensitive/private information leakage Reputational damages Litigation (e.g. discrimination, harassment) Compliance / disclosure (e.g. SEC, HIPAA) System uptime/consistency Impact on organization s IT bandwidth Employee productivity it

17 Information Security Risks Viruses, trojans, spyware, malware, and other not-sogood-ware Cross-site scripting (XSS for the IT peeps) URL shorteners what s on the other end of that weird link?

18 Regulatory Guidance Healthcare: HIPAA risks of private data leakage Health Information Technology for Economic and Clinical Health (HITECH) Act Financial i Services: Financial Industry Regulatory Authority (FINRA) 18

19 Regulatory Guidance FINRA Regulatory Notice Firms must retain social media communications And you thought archiving was hard??

20 The question being raised is whether or not activity on sites like q g y Twitter, Facebook and LinkedIn need to be archived and available for records requests.

21 Legal Ramifications? LinkedIn recommendations Whose is it? Individual vs. organization Facebook friends Employees friending competitors Employees friending former employees

22 A good social media policy Adhere to the Code of Business Conduct and other applicable policies You are responsible for your actions Be a scout for compliments and criticism Let the subject matter experts respond to negative posts Be conscious when mixing your business and personal lives A simpler policy: Do the right thing. Be nice. Source: The Coca-Cola Company

23 LinkedIn Discussions Scenario: Help. I m a staff IT auditor at XYZ in New York, and I ve been assigned to do an information security audit of Acme Technology, one of our third-party vendors. Fill in the blank with the nightmare of your choice Does your organization have a policy on posting questions or answers to groups?

24 Is your organization linked in? Does the organization have a strategy for use of social media? Review social media policy if it exists Who is monitoring organization s name on social media sites? Who is coordinating any responses by the organization? Is there one/few dedicated social media managers?

25 Is Internal Audit linked in? Can internal audit help with text mining queries? Can your internal audit attract greater number of qualified career applicants? Can internal audit help shape/influence social media policy?

26 Social Media Policy Help with development of policy if it doesn t exist Information Technology department Legal Human Resources Ethics/Compliance Central/Corporate vs. Business-level policies

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29 Follow, Friend or Connect Me! Chase Whitaker twitter.com/43chase linkedin.com/in/chasewhitaker43 Old fashioned but classic way: (615)

30 Available from IIA bookstore Chapters Overview Corporate Strategy Monitoring & Measuring Policies Risks Governance The Audit

31 FREE White Paper! Organizations encouraged to address risks in these areas: Viruses/malware Brand hijacking Lack of control over content Unrealistic customer expectations of Internetspeed service Non-compliance with record management regulations

32 Wanna go techie? Volume 1, 2011 Article: Chain Exploitation Social Networks Malware

33 Social Media Policy Examples Collection of policies from various organizations: publications/social- media-policies/ Colleges & Universities Vanderbilt University Financial Services: Wells Fargo

34 Social Media Policy Examples Mayo Clinic employees/ ees/ Cleveland Clinic policy.aspx Danbury Hospital Us/Policies/Legal/Blogging-Policy.aspx

35 Social Media Policy Examples Healthcare: MD Anderson www2.mdanderson.org/cancerwise/policies-and- guidelines.html Retail: Nordstrom policies/social media guidelines.asp Retail: Best Buy

36 Social Media Policy Examples Local Government: City of Seattle Federal Government: CIO.gov cial_media_v01 v01-0.pdf0.pdf Non-Profit: Walker Art Center alkerblogguidelines

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