Friday, September 28, 2012

Guest Article: Enterprise Risk Management for Higher Education Institutions

Hi James,

Please check this article "Enterprise Risk Management for Higher Education Institutions". It's unique and I've prepared it exclusively for your blog, hope you'll consider.

Thanks,
Katheryn

Thanks, Katheryn.  Here it is: 


Enterprise Risk Management for Higher Education Institutions
Enterprise risk management is essentially a process that is used by businesses and organizations to minimize risks and maximize opportunities. Most organizations use a common outline to create an effective risk management plan. This plan is created to achieve three key goals; identify the organization’s objectives, identify the events or circumstances that put the organization’s objectives at risk or that help the organization reach its objectives and determine the likelihood and impact of these events or circumstances.
This type of planning puts businesses and enterprises ahead of their own game. Once a strategy has been created, a risk management team is usually charged with monitoring business activity and reviewing analytical reports to make sure it is working. Risk management strategies also provide organizations with contingency plans for specific potential risks. In addition to helping an organization meet its objectives, enterprise risk management also helps protect and increase a business or enterprise’s value for owners, employees, customers and clients.
Because a poor risk management plan can literally mean the demise of an organization, it is highly important that higher education institutions focus on creating a solid strategy that will protect and increase their value to students and faculty. Universities are very large enterprises that are comprised of various sub-schools and programs, so even though the common risk management outline should still be used, university officials must tailor their plans to cover the specific risks and opportunities of each sub-school and program.
The term “sub-school” refers to the separate colleges that make up a university; for example, a college of arts and sciences or a college of medicine. Many universities are also home to several research and public outreach programs that are not specifically related to student education, as well as athletic programs, student health departments, libraries, museums, student organizations, media production and administrative departments. This is an overly simplified list of what makes up higher education institutions, and it still shows just how extensive the system is and how great the potential is for both risks and opportunities.
There are many fronts to cover, in terms of higher education risk management. Two of the most important topics, though, are the health and safety of students, faculty and staff. To manage these risks, universities should implement policies, programs and contingency plans that are designed to promote and protect health and safety. Other topics that should be assessed for risks and opportunities on a regular basis include college and program funding, campus operations, campus infrastructure, student and faculty retention, graduation rates, professional licensing exam scores, employment rates of alumni and the local, national and global economic forecast, among more.
Board members and top administrators and faculty members should work together to conduct research and analyze data and information to come up with an enterprise risk management plan that covers the needs for each individual sub-school and program, as well as the needs of the university as a whole. Because circumstances often change on a yearly basis, a review of all risk management methods and programs should be conducted on a yearly basis, as well.
With a strong plan that controls the probability of risks and maximizes the realization of opportunities, universities and colleges will maintain their integrity and keep the public’s trust in them as educational and career-building institutions.
Katheryn Rivas is a freelance writer and blogger who has contributed articles to numerous education resource websites. Covering topics that range from education, technology, career advice and college preparation, Katheryn works hard to research the facts about recent education news and trends to help her readers make the best decisions for their schooling and careers. Please direct your questions and comments to her at KatherynRivas87@gmail.com.

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