The risks are the same as for staff and faculty who have cell phones, email and Internet accounts, and are otherwise provided with opportunities to engage the general public. The good news is that most staff and faculty in higher education seem to feel they are in a gated community and don't reach out the public much. The bad news is that those who do have the tendency to forget they are representing the University and may even give indications of their personal biases that are in direct conflict with the purpose of the University, their academic department, and their co-workers.
I think that University policymakers need to examine their current policies and adapt them for this new location. For many, there will be a period of growth and the ongoing adjustment that will require allowing staff and faculty to make mistakes and learn from them.
Do all Universities have a need to address social media?
No, only those that plan to be in business past 2015. Ironically, the style and substance of social media is very similar to the interactive learning environment that online learning requires. This type of learning is growing, especially among non-traditional learners, and the for-profit and private institutions of higher education seem to be the thought leaders in this area. Those who don't plan to have a social media presence will be restricted to the old methods of communication and relationship building. That may work for a few who cater to the older Gen-X and some Baby Boomers, but for those who want to provide a real learning environment to the here and growing Gen-Y (also known as Millenials), yesterday was the right time to get it together.