List how ERM adoption and implementation in the higher education environment differ from the for-profit environment?
Provided in the lecture I briefly discussed how for-profit and not for-profit institutions are similar, adding to the content in the chapter. List how ERM adoption and implementation in the higher education environment differ from the for-profit environment? Provide three examples of how ERM adoption and implementation may differ in the two environments. Be descriptive and throughly justify your rational.
Requirements: The paper should be strictly in APA format. The paper should be plagiarism free. Also, include references and in-text citations in the paper.
Chapter 9
Lessons from the Academy: ERM Implementation in the
University Setting
Enterprise Risk Management
Professor Miguel Buleje
Introduction
Higher education environment
ERM in higher education
Adopting ERM in Colleges and Universities
The University of Washington case study
Summary
Higher Education Environment
Generally considered “different” from enterprises
Non Profit different as for Profit.
No Target by legislation
Historically separate from targets of legislation
Often, success may lead to lack of risk management
Tendency to be little more relax on the risk management side of the house.
Multiple high-visibility scandals have shed light on HE
Scandals financial / student / faculty issues.
Many HEIs have migrated to more corporate ERM
Different HE cultures demand different ERM solutions
3
ERM in Higher Education
Recognition of institutional areas
Each encounters unique risks
Risks can include
Litigation settlements
Loss
Assets
Enrollment
Donors
Reputation damage
Will directly impact enrollment and donor participation
Adopting ERM in Colleges and Universities
Think tank in Higher Ed to discuss ERM
2001
PricewaterhousCoopers (PWC)
National Assoc of College and Univ Bus Officers (NAUCUBO)
Focus
Definition of risk
Risk drivers in HE
Implementation of risk management to assess, manage, monitor
risk
Proactively engage the campus community
University of Washington
Sentinel event
$35 million fine for Medicare and Medicaid overbilling
Push to implement ERM to improve compliance
UW is built on a decentralized governance model
Started with
Strategic Risk Initiative Review Committee (SRIRC)
Each initiative asked
Does this proposal add value?
What obstacles are apparent and how can they be addressed?
How can this proposal be improved?
University of Washington, cont’d.
Committee recommendation
Create a Culture-Specific ERM
Examined other HEIs
UW Evolution of ERM
UW ERM Structure
UW’s ERM Integrated Framework
UW’s ERM Process
UW’s Risk Assessment: Likelihood and Impact
Summary
Outcomes are consistent with guidance offered by
National Association of College and University Attorneys (NACUA)
NACUA eight critical factors
Establish the right vision and realistic plan
Obtain senior leadership buy0in and direction
Align with mission and strategic direction
Attack silos at the outset
Set objectives and performance indicators
Stay focused on results
Communicate vision and key outcomes
Develop a sustainable process versus a one-time project