Social media is an evolving challenge for compliance managers, particularly at highly regulated financial services firms amid crackdowns on employee use of off-channel communications for conducting business.

A recent survey found most financial institutions do not monitor their employees’ use of social media or factor in market risks exacerbated by social media posts. More than a third of firms are abandoning tech compliance projects.

Ruth Prickett graduated from Cambridge University with a BA hons in History and has specialized in business and finance journalism for the past 20 years. She was editor of Financial Management, the magazine...