Business Risks within the social media industry

There are certain risks faced by companies when considering social media. Those risks are challenging for our businesses and can destroy the corporate image of the brand. Certain risks associated with social media industry are as follows:

Damage to brand image:

It is indispensable for organizations to coordinate the nature of their social media pages with the notoriety that they’ve worked for their image. The brand images of today’s business to an excessive degree handed on by its online activities, shaping it straightforward to handle business’ virtual content. To stay away from damage to your brand image, your company should be conscious of its audience and meditate before clicking the post link. Vicious posts have caused contention for some, organizations including AT&T, who infuriated clients in 2013 with a business tweet around 9/11. A surprising way to secure your brand notoriety is to have presence social platforms, get ready for your employees to demonstrate to them what comprises proper content (FANARAS).

Inconsistency:

Organizations often compete in social media life deprived of comprehending what they are accomplished or an action plan. Inadequate or outdated social networking pages will consider ineffective if your business not managed. A business page has not been revitalized in at least a year; then, there is no effective method to secure your brand image. The ultimate method to maintain a strategic distance from battling on the social image is to prepare a social media strategy and focused on it. Recognize the phases that worth applying and the ones that could be reserved far away from. By following a procedure and regularly revitalizing your pages with interesting content, your brand image will preserve a stable image and stay focused (FANARAS).

Compromise your personal information

Social media highlights can be progressively helpful for certain users, yet it has security chances that may likewise be novel and, thus, extraordinarily worried to users. The product, so, may not be as private as it might appear. The inventive idea of the application implies that a great part of the client gave content isn’t secured by similar security and insurance offered through other online life administrations like Facebook and Twitter (What Is Snapchat And What Business Uses Does It Have? 2018).

The “snaps” that are made and posted can be recovered with programming instruments, and both scientific investigators and programmers the same can abuse this. As per the Telegraph, it is feasible for programmers to block Snaps in transmission forms despite levels of encryption. This is because of the potential for unscrambling through a type of figuring out conceivable through the Android application bundle document.

Analyze Trends

Analysis of Weibo’s Financial Statement:

Upon analyzing Weibo’s financial statements, we came to know that net income would decrease from $572,620,000 to $492,833,000 in the year 2018 to 2019. Their total revenue decreases from $1,718,518,000 to $1,766,914,000 based on previous year. There are a variety of factors that causes a reduction in revenues and income of Weibo Company. Their current Assets increases from 2,469,098,000 to 3,636,178,000 as per the previous year. Their Liabilities also rise, which means that the Weibo company owns a huge amount of loans from creditors to run their business, which surely increases the burden on the company’s financial performance.

Legal Agreement with VIEs:

Under the legally binding agreements with the VIE’s, which fused as constrained obligation organizations under the PRC Organization Law, creditors of the VIE’s don’t have a response to the general credit of the Organization. The aggregate sum of expenses and costs apportioned from SINA to the VIEs was $21.4 million, $25.6 million and $27.6 million for the years Completed on December 31, 2017, 2018 and 2019, separately.

Implementation of ASU 2016-01:

Before the implementation of ASU 2016-01 of every 2018, the Gathering utilized cost technique to represent value ventures on which the Gathering doesn’t have a critical impact. In the wake of implementing ASU 2016. The group estimates interests in value protections, at fair value through profit. The group chooses to record these reserves at cost, fewer damages, add or deduct ensuing adjustments for discernible price variations.

Long term investments:

For the years completed on December 31, 2018, and 2019, the group put resources into private cutting edge organizations accumulated $134.8 million and $268.7 million, separately, which were represented under value ventures without promptly definable fair value. These ventures were to additionally grow and fortify the Group’s biological system and incorporated a follow-on reserve of $100 million in Yixia Tech Co., which is a developer of versatile video applications. The follow-on interest in Yixia Tech brought about a total interest in the organization of $290 million before the $214.7 million damage perceived in 2019. Likewise, the group put $97.3 million and $91.9 million in organizations, which were represented under equity strategy in 2018 and 2019, separately. For the most part, these ventures incorporated a $48.0 million and a $45.0 million interest in two capitalizing funds in 2018 and a $57.4 million interest in an organization providing customer financial services in 2019.

Visualization to aid in risk assessment:

References

FANARAS, L. A. (n.d.). 4 Risks for Your Business to Consider When Using Social Media. Retrieved from Millennium Agency: https://mill.agency/content/4-risks-business-consider-using-social-media/

Social Media Trends for 2020 and Beyond. (2020, February 27). Retrieved from Influencer Marketing Hub: https://influencermarketinghub.com/social-media-trends/

(2019). Weibo Annual Report. WEIBO CORPORATION.

What Is Snapchat And What Business Uses Does It Have? (2018, August 28). Retrieved from Intelice Solutions: https://www.intelice.com/what-security-precautions-should-you-take-if-using-snapchat/