Academia and Risk Management

The Association of Governing Boards (AGB), an association focusing on governance and leadership issues in higher education has recently released a report entitled "The State of Enterprise Risk Management at Colleges and Universities Today." Based on a survey of more than 600 respondents (in June 2008), the report covers "attitudes, practices and policies regarding enterprise risk management among American colleges and universities." The AGB's site also hosts a two-page document called "Enterprise Risk Management: Best Practices for Boards, Presidents, and Chancellors." with an accompanying (simple) worksheet covering most basic types of risks in higher ed. All of these documents are also contained in the report.

The report provides valuable action items for university leaders and board members. Most of the recommendations include the need to define one's risk appetite and engage in a systematic and comprehensive, regular risk assessment.

Unfortunately, in my opinion, the effect of looming cuts from most state budgets will mean that this report and its recommendations will be ignored by most institutions until an "incident" forces them to rethink their position.

Src: Research Agenda | Association of Governing Boards

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