Higher education is lagging behind private industry when it comes to considering risk in strategic planning, according to a report released last week by the Association of Governing Boards of Universities and Colleges, United Educators.
“The State of Enterprise Risk Management at Colleges and Universities Today” reports 60 percent of respondents say their institutions do not use comprehensive, strategic risk assessment to identify major risks; less than half say their “Board members andsenior administrators actively engage in discussions regarding institutional risks;” and 5 percent say their institutions have exemplary practices for management of major risks to mission success. The survey was conducted in June 2008.
The report goes on to recommend the following best practices:
- Define risk broadly.
- Recognize both the opportunities and downsides of risk.
- Develop a culture of evaluating and identifying risk at multiple levels.
- Look at the total cost of risk.
- Boards and presidents should collaborate
To read the full report, click here.
