With the higher prevalence of social media and technology, the line between fact and fiction is blurring at a fast pace. The world of media is making our minds converge on whatever information is readily available.
Social media developed as a medium of self-expression and open communication is now being under heated argument for offering complex narratives, fake insights, and biased articles that aren’t backed by regulatory evidence. Authorities paying high-domain public platforms to publish positive insights leave the compliance team in a quest to know what’s true and what’s not.
This blog will walk you through the credible sources to refer to while searching for adverse media while being clear on the strategy to find out the validity of news with adverse media screening.
Is adverse media the same as negative news?
This one question has taken the compliance teams by surprise. The differences between them can be categorized in terms of their meaning, application, and purpose.
- Meaning Differentiation
Adverse media screening refers to any unfavorable news found across media about individuals and entities. The meaning of adverse media stands out from other news sources, as this media is closely related to financial crimes and regulatory breaches.
Whereas, negative news is any news information that sheds negative light on the individuals, ultimately affecting one’s reputation. Negative news differs from adverse media as they can talk about every environmental, social and human rights violation, contrary to adverse news media.
- Application of Adverse Media
Adverse media and negative news differ concerning their usage and application. Adverse media is solely used within the domain of financial compliance and focuses on identifying risks associated with an individual or entity.
Negative news screening, on the other hand, is a term that covers negative information about individuals and entities across multiple dimensions and doesn’t remain restricted to the financial realm alone.
Want to read more about adverse media monitoring? Explore key elements of adverse media checks here.
Find out the top 6 Sources of Adverse Media
Adverse media and negative news are everywhere. However, only certain sources are considered credible when it comes to abiding by the thin line of classification between assumed and authentic information. Here are 6 sources to consider for adverse news screening in 2024.
News Articles – are the primary source of adverse media. Information revealed by recognized and authorized news sources effectively highlights the risks associated with any individual or entity.
Social Media – Unlike other traditional sources of media, nothing is hidden from the eyes of social media. No matter how smartly one commits a crime, social media will always have dots that may help you connect with the intended source of information.
However, as social media is highly unreliable information found from these sources must be cross-analyzed to confirm the credibility of it.
Online Forums – offer insights that are not readily available on search engines or government websites. This includes information known among people but might need further verification to account for this as credible.
Government records – includes information found on governmental websites as a Department of Justice.
3 Ways to Check Validity of Adverse Media
Online adverse media screening is only relevant when the sources are credible enough to meet the regulatory requirements. Alerts for risks are passed to regulatory authorities only if the evidence is sufficient enough to stand a formal investigation. Here is what can help you confirm the health of adverse media.
- Sentiment Analysis
Sentiment analysis involves analyzing and categorization adverse media based on the sentiment addressed within the content. The language concerning the individual or entity across the article helps in analyzing the seriousness of news, thus helping prioritize the news as per relevant risk category and threshold set for the business.
- Sources of News
Unlike traditional media sources that may miss out on important information due to their lack of coverage, modern media sources including social media, online forums, websites, emails, and online advertising may offer insights that are not readily available elsewhere.
However, when it comes to the credibility of the source, social media and online forums by the public majority may be unreliable, however, information posted on social media, websites, and email by recognized organizations might be considered credible.
- Risk Level
Every organization differs concerning its risk tolerance. Adverse media about human rights violations might not be as relevant to financial institutions as it may be for supply chain vendors.
Thus, the relevancy and risk level of adverse media for your business would help define how credible it is for an industry.
What are the advancements to expect?
Apart from the sources discussed above, there is an increasing trend for special websites that highlight every possible adverse media linked with fraud, corruption, money laundering, and many other illicit crimes. Try searching for sanctions with a free trial of open search today.