The Complexities of Managing Influencer Risk

As influencer marketing continues to thrive, surpassing $21 billion in value, companies are increasingly relying on content creators to drive brand growth and audience engagement. However, industry leaders we've spoken with highlight that influencer marketing risk management is a complex challenge that often requires shared ownership across multiple teams within an organization.

Through our research and conversations with executives across marketing, legal, and finance teams, we identified key insights into why influencer risks often fall through the cracks—and what leading companies are doing differently.

Key Insight #1: Marketing Teams Drive Partnerships, but Risk Management Requires Collaboration

Marketing teams excel at identifying and partnering with influential creators to boost engagement and drive sales. Yet, industry leaders agree that managing associated risks cannot rest solely on marketing's shoulders. Effective risk management requires collaboration between marketing, legal, and finance teams to ensure alignment and compliance at every stage of influencer campaigns.

Example: One company shared an incident where rapid campaign execution without sufficient cross-team consultation led to unintentional copyright violations, resulting in significant legal fees.

Key Insight #2: Legal Teams Play an Essential Role in Proactive Risk Management

Legal teams play a crucial role in managing compliance and mitigating legal risks associated with influencer marketing. Industry conversations emphasized the critical importance of proactive engagement from legal teams, especially during the planning phase of influencer campaigns, to significantly reduce risk exposure.

Example: One fashion brand highlighted how partnering proactively with their legal team allowed them to identify and address potential contract issues early on, ultimately preventing costly legal exposures. This collaboration now enables the creation of clearer, more protective influencer agreements from the outset.

Key Insight #3: Finance Teams Have a Crucial Role in Influencer Risk Planning

Finance teams traditionally focus on budgeting and ROI but are less frequently involved in influencer risk planning. Industry leaders suggest that by actively incorporating financial perspectives into risk management strategies, companies can better prepare for and mitigate potential financial impacts from influencer-related issues.

Example: A major beauty brand faced unexpected costs from a brand safety issue, forcing them to redirect budget resources mid-year. They now involve finance earlier in planning to ensure adequate funds are set aside for managing potential influencer risks.

How Leading Companies Are Simplifying Influencer Risk Management

Industry leaders highlight that when influencer risk management becomes part of regular workflows, cross-team collaboration improves significantly. Rachel Coldren, Manager of Influence at Current Global—an integrated communications agency known for its innovative influencer programs—emphasizes how streamlined processes save considerable time and resources:

"If you weren't at this company three years ago, you wouldn't understand the pain of how we did this without 1099Policy. It's so expensive and time-consuming to figure this out without you." – Rachel Coldren, Manager, Influence @ Current Global

This sentiment highlights how fractional liability insurance isn’t merely an add-on—it's now considered a critical part of the influencer marketing ecosystem.

Conclusion: How Leading Brands Are Embracing Shared Responsibility

Forward-thinking companies recognize that influencer risk management is a collaborative effort. These organizations facilitate communication between marketing, legal, and finance departments, creating comprehensive strategies that proactively address potential risks.

1099Policy’s fractional media and cyber liability insurance supports this collaborative approach by providing flexible, scalable solutions that seamlessly integrate into cross-departmental planning.

📢 Is your brand prepared for influencer risks? Learn how fractional coverage can help.

Photo by Karsten Winegeart on Unsplash