WASHINGTON (12/12/13)--Noting that social media use can impact a financial institution's risk profile, the National Credit Union Administration and its Federal Financial Institutions Examination Council partners released guidance addressing social media policy. It explores how consumer protection and compliance laws, regulations, and policies could be applied to the use of online social media platforms by financial institutions.
A financial institution, the FFIEC wrote, "should have a risk management program that allows it to identify, measure, monitor, and control the risks related to social media." The FFIEC said the size and complexity of such a program should be commensurate with the breadth of the financial institution's involvement in this medium.
Compliance, technology, information security, legal, human resources, and marketing specialists can all contribute to the development of the plan, and financial institutions should also provide guidance and training for employee official use of social media, the FFIEC said.
According to the guidance, components of a risk management program should include:
The FFIEC was formed in 1978 to promote uniformity in financial institution regulation. In addition to the NCUA, the council is comprised of the heads of the Federal Reserve Board, the Federal Deposit Insurance Corp., the Comptroller of the Currency, and the Consumer Financial Protection Bureau.
For the full FFIEC guidance, use the resource link.