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Social (Networking) Security

How to Keep your company safe from privacy leaks online

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This story appears in the November 2009 issue of Entrepreneur. Subscribe »

After a prospective subcontracting deal at a major manufacturer was leaked through , affecting the stock price of both companies, Roger Traversa, an attorney in corporate compliance and at Arjont Group in , was called in. His firm specializes in advising businesses on privacy risks, and he says the same rules apply to businesses big and small--and in fact, the results of social media outbreaks can be even more dire on the small side.

"For smaller companies, leaks can be make or break," Traversa says. "Losing one competitive advantage or one trade secret can really damage your business."

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