Lack of transparency has a negative impact on the company’s value.

A rather popular topic these days is the risks to organizations of using social networks. An article in today’s Australian Financial Review examines the issue in detail, with an interview of me (excerpted below) hopefully balancing out the other opinions expressed in the article. Unfortunately the way I was quoted seemed to overemphasize my cautions relative to the benefits I discussed.

I am finding it very tiresome to continuously hear security consultants and vendors with big PR budgets go on endlessly about risks, without ever mentioning business benefits. This drone gets into executives’ heads, and as a result discussion of social networks – and many other potentially valuable business tools – focuses on risk and not benefit.

My Enterprise 2.0 Governance Framework explicitly addresses risks, benefits, and actions. It is critical to acknowledge, understand, and minimize risk, but executives are equally culpable if they ignore business value as if they ignore risk.