As social media becomes more and more entrenched in the business world, a pair of articles today address the risks of it for businesses and leaders.
A Fortune article refers to a Security and Exchange Commission decision to let businesses disclose important financial information through Twitter and Facebook. The idea is to make important corporate updates more accessible to the public.
That creates more risk. Corporate Twitter accounts in particular have been more vulnerable to hackers. A hacker could conceivably post a fake financial update about a company, which would cause shares to climb and quickly drop when investors realize the news was fake.
The Associated Press Twitter account was hacked last week to post a fake news report about a bombing at the White House. That caused the Dow Jones industrial average to drop 140 points, erasing $136 billion in market value.
Another article, by Reuters, addresses the ability for political leaders to take to Twitter and cause a public relations nightmare, or worse.
Earlier this month, amid a protest of the Argentine government, President Cristina Fernandez took to Twitter to post 61 tweets in a nine-hour period. That and other instances have fueled debate about whether sharing too much on Twitter makes politics more polarized or attacks more personal.