Social media revolution the way people communicate and interact with each other. The impact on commerce, politics and civil society is unquestionable. Business has the opportunity to harness the power of social media to grow and increase revenues by targeting and embracing these new channels. There are multiple reasons for the popularity of social media. It is very convenient because it can be accessed by mobile phone while on the-go. Social media is central to the spread of breaking new to the shaping of opinions because all sides of any story or argument can be expressed and discussed. In the digital age, reliance on top-down, one-way and faceless company communications is outdated. Companies have learnt that it is pointless reacting to what’s happening on social media by issuing a traditional press release the following day. The concept of Social media governance is all about understanding the risks which social media poses to one’s organisation and having confidence that one could appropriately manage them. Use of social media by people and organisation is increasing rapidly and the potential benefits of a successful social media strategy are significant. But availing the freedom of social media experience within sensible boundaries is a question of the hour. Marketing departments are well aware that social media is the modern word-of-mouth. It is used for launching new products or services, and for the accumulation of customer data which allows companies to target their adverts. Online customer reviews are what really determines success or failure. This feedback is regarded as reliable and authentic, so positive reviews are priceless for companies. Reviews may be in the form of star ratings and appear on comparison websites. The perceived risks of social media need to be kept in perspective because reputational crises already occurred An effective social media strategy and governance would be of an overall social media assessment, a clear social media strategy, consistent social media policies, an awareness program and professional social media monitoring. If these are well designed, and successfully meshed with data loss prevention, data analysis and end-user protection, the resulting governance enables organizations to leverage their use broadly, helping to lower risk and protect the brand. Ultimately helping the organization and its employees gain valuable insights into customer perceptions of an organization’s goods, services and brand. While defining the role of social media in applying good corporate governance practices and the opportunities it generates in corporations, there are also various new potential challenges associated thereto with the usage of social media. The real time research problem related to this aspect is the kind of unawareness and ignorance corporate personnel have about the consequences of potential challenges in terms of data security, privacy concerns, IT risks and thereby not addressing them promptly and at the earliest. Hence a more holistic and enterprise-wide effective social media governance strategy is needed to tackle this out.