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Risk-proof Your Socials: Asset Managers' Guide

Risk-proof Your Socials: Asset Managers’ Guide

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8 months ago

8 months ago

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Embracing social media and content marketing is crucial for establishing brand visibility, cultivating trust, and nurturing a vibrant community. By adopting an always-on, multi-platform approach, asset managers can leverage the power of socials to enhance their online presence and engage with their target audience effectively. However, it’s important to recognise the importance of being mindful of potential risks associated with this endeavour and plan accordingly.

Nothing worthwhile is without risk

Social media and content marketing are one of the most effective ways for asset managers and finance brands to build brand awareness, trust and community. In fact, content marketing generates 3x as many leads as traditional outbound marketing but costs 62% less. Yet, like with everything, using social media comes with some risks.
Recently, Reuters explored the need for finance brands to have risk management strategies in place after Silicon Valley Bank tumbled as a result of reputational damage from a social media maelstrom.

  • Reputational Damage: Posting without a strategic approach could harm your image and detract from your brand’s values. Social media isn’t a scary place, but instead should be viewed as an opportunity to expand your reach and connect with investors.
  • Compliance Violations: Social media for asset managers is about striking the balance between creative ideas and compliance. Consider who your target audience is and what they want to see. Posting educational content, brand updates and timely investment insights can all help to build brand awareness, improve financial education and form strong connections with investors.
  • Cybersecurity Attacks: Hackers often set their sights on social media platforms, making it crucial to fortify your defences and protect your valuable data. Bolster your security measures by employing strong passwords, enabling two-factor authentication, and being mindful of the information shared by you and your social media managers online.

    “ One of the best ways for asset managers to mitigate the risks associated with social media is to be transparent. ”

So, should your asset management firm be dissuaded from using social media? No, not at all. Social media can be a powerful tool for you, but you need to be aware of the risks and take steps to mitigate them.

Risk management strategies for your socials

By putting in place risk management strategies you can feel confident utilising social media to safely and significantly extend your brand’s reach. Here are some risk management strategies you can put into place for your social media channels:

  • Create a social media policy: Lay down clear guidelines that outline the purpose and parameters for posting on social media.
  • Train employees on social media etiquette: Empower your team with knowledge on how to avoid mistakes, safeguard confidential information, and respond professionally to negative feedback.
  • Utilise a social media management tool: Leverage specialised tools to monitor your social media presence, identify potential risks, and maintain timely engagement with comments and messages.
  • Have a crisis management plan: Prepare for the unexpected by developing a plan that outlines how you will respond if faced with a social media crisis.

The importance of transparency on socials

One of the best ways for asset managers to mitigate the risks associated with social media is to be transparent. This means being open about investment insights, strategies and financial performance.
Transparency builds trust with investors at all levels and only serves to further solidify expertise.

Beyond transparency

In addition to being transparent, asset managers can also take proactive steps to mitigate the risks associated with social media. This includes:

  • Moderating comments and message: You should monitor your social media accounts and remove any comments or messages that are offensive, inappropriate, or misleading. Responding to comments is also an opportunity to respond to soft leads and build a community.
  • Responding to negative feedback: When you receive negative feedback, you should respond in a timely and professional manner. You should acknowledge the feedback, apologise if necessary, and explain how you’re addressing the issue.
  • Being more ‘human’: Content marketing is a great way of connecting with investors through showing a more ‘human’ side to your brand. Through your tone of voice, the content you produce and the access followers get to behind-the-scenes content you can build a loyal following that recognises who your brand is and what you stand for.

Don’t get caught out

Social media holds immense potential for asset managers, and with the right risk management strategies in place, you can seize the benefits while safeguarding your reputation.

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