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PHILADELPHIA--(BUSINESS WIRE)--Social media has become so pervasive that it’s hard to remember a time without Facebook^®, Twitter^®, YouTube^®, or LinkedIn^®. But regardless of whether organizations actively use social media or not, this pervasiveness has spawned a new world of risks. These risks -- reputational, legal, and operational -- impact privacy, security, intellectual property, and employment practices issues, to name a few.

Recognizing that the widespread use of social media has both benefits and risks, ACE USA, the U.S.-based retail operating division of the ACE Group, and the Information Law Group, today released a white paper discussing the business benefits of social media participation, and describing how to respond in a proactive manner to the many risks posed by social media.

“Social Media: The Business Benefits May be Enormous, But Can the Risks – Reputational, Legal, Operational – be Mitigated?” was co-authored by Toby Merrill, Vice President, ACE Professional Risk, Kenneth Latham, Vice President, ACE Professional Risk, David Navetta, Esquire, CIPP, Partner, Information Law Group and Richard Santalesa, Esq., Senior Counsel, Information Law Group. This social media white paper explores how a business can harness the power of social media, as well as how its use can translate into benefits.

“The business benefits of social media participation can be substantial, while the cost of non-participation, or opting out, may mean anything from losing business to losing touch with your customers and important trends in your industry,” commented Mr. Merrill.

Mr. Latham added, “Of course, there is also much to lose if your company does not respond proactively to the many risks posed by social media. It is imperative that companies have adequate insurance coverage for their social media activities, and review their coverage parameters and amounts regularly.”

Mr. Navetta of the Information Law Group stated, “Apart from offering social media guidelines for employees, companies should also follow certain practices to ensure their corporate safety on line, by engaging the proper legal team early in the process. Organizations need to also identify the laws and legal risks that may apply, ensure they are complying with third-party sites’ guidelines, engage in active site monitoring, and consider creating a response team.”

Mr. Santalesa added, “This analysis will help the organization understand its risk, so it can perform an appropriate cost-benefit analysis concerning its social media activities, and then design mechanisms to mitigate that risk to an acceptable level.”

The authors’ commentary is part of ACE Progress Reports^SM, a collection of white papers, articles, and executive reports on current and emerging risk management issues, and it was produced in conjunction with the Information Law Group.

To access the report, please visit:/www.aceusa.com/News/Pages/ACEProgressReports.aspx. The material presented in the report is not intended to provide legal or other expert advice. It is presented as information only. Readers should consult legal counsel or other experts, as applicable, with any questions they may have.

About the Information Law Group

The Information Law Group was established in October 2009 to provide efficient and high quality legal services at an affordable price. The firm concentrates on legal issues concerning privacy, data security, information technology, e-commerce and intellectual property. The Information Law Group addresses a broad spectrum of legal matters, including transactions and e-commerce, compliance, breach notice and incident response and litigation. The lawyers of the Information Law Group have successfully served a diverse range of clients: from large Fortune 500 multinationals and name-brand traditional brick-and-mortar companies, to small start-ups and technology service providers.

About ACE Group:

ACE USA is the U.S.-based retail operating division of the ACE Group, and is rated A+ (Superior) by A.M. Best Company and AA- (Very Strong) by Standard & Poor’s. ACE USA, through its underwriting companies, provides insurance products and services throughout the U.S. Additional information on ACE USA and its products and services can be found at www.aceusa.com. The ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the S&P 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acegroup.com.