www.UE.org

Risk and Innovation

Janice M. Abraham, President & CEO, United Educators

Tom W. Dwyer, Provost, Johnson & Wales University

ERM: A process forward 2

ERM: A process forward 3

ERM

A collaborative process, led by senior administration, that expands the core concepts of risk management: Identifying risks across the enterprise Assessing the impact of the risks to the plans

and mission Developing and testing mitigation plans Monitoring identified risks and consistently

scanning for emerging risks

ERM: A process forward 4

Roles

• Owns ERM• Department heads involved in operational risks

Senior Administration

• Sets tone, addresses strategic and governance risks and fills in gaps

Full Board/Executive Committee

• Understand programs and risks

Standing Committees

• Owns specific risks and process

Audit Committee

ERM: A process forward 5

Best Practices

Tone at the top matters: Champions are essential

Understand and embrace specific roles Understand, respect, and appreciate differences

between business and education Build on the work of others, use Risk Registers Question sacred cows Look for opportunities and upside risks

ERM: A process forward 6

University of AlbertaRM Process

ERM: A process forward 7

University A. Risk Register:

Adequacy of financial resources Information technology infrastructure, systems and

support Age and condition of facilities and physical plant

infrastructure Recruitment and retention of top personnel Individual and institutional conflict of interest,

employee misconduct, regulatory non-compliance Execution of Strategic Plan

ERM: A process forward 8

University B. Risk Register:

Governance Student enrollment Liquidity, debt and reserves Health care costs Management turnover Return on investment in new capital projects and programs Legal/regulatory compliance Information security Disaster recovery and business continuity Potential for fraud and conflicts of interest

ERM: A process forward 9

Liberal Arts College Risk Register:

Enrollment: Student’s perceived return on investment

Succession planning for President/Senior staff Facilities: Age and condition not keeping pace with

student demand and increase in sciences Health and safety of students focused on alcohol

and sexual assault Information technology infrastructure, security and

renewal Endowment growth

ERM: A process forward 10

University C. Risk Register

Strategic Plan implementation Income diversification New initiatives: Research, Accreditation Governance Faculty: Demographics Compliance: Research, Title IX, Clery Athletics: Compliance, funding, injuries

ERM: A process forward 11

University B. Risk Assessment

ERM: A process forward 12

JWU ERM

ERM: A process forward 13

Lessons Learned From Others:

Focus on high-impact risks Focus on mitigation plans Take on the tough issues and sacred cows All risks must have owners It’s a process and business tool, not a project

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Janice Abraham

President & CEO

Prevention and Protection for EducationTM

7700 Wisconsin Avenue, Suite 500

Bethesda, MD 20814

Office: (301) 907-4908

Direct: (301) 215-8462

jabraham@ue.org