How “Finfluencers” Can Create Risk for Your Company

Social media finance influencers, known as “finfluencers,” are making investing accessible to more people, especially younger investors. While that seems positive at first glance, it’s not so simple: Perverse incentives, lack of regulation, and misinformation can often lead to harm for both individual investors and companies. Business leaders, especially those in charge of investor communications, must understand the changing ecosystem that disseminates information about companies, as well as the dangers of hype-driven fluctuations. They must act proactively, in consultation with the chief financial officer and chief marketing officer, to address this phenomenon.