Document Actions
Enterprise Risk Management in Higher Education
Title: Enterprise Risk Management in Higher Education
Date: September, 2007
Author: Vincent E. Morris
Institution: University Risk Management and Insurance Association
Bibliographic Entry: Vincent E. Morris. Enterprise Risk Management in Higher Education. September, 2007. https://www.urmia.org/library/docs/reports/URMIA_ERM_White_Paper.pdf (Accessed August 13, 2008).
Electronic Link: https://www.urmia.org/library/docs/reports/URMIA_ERM_White_Paper.pdf
Key Words: risk management, enterprise risk management, University Risk Management and Insurance Association (URMIA)
Summary of Key Points, Issues, Conclusions:
Increased levels of regulatory compliance have led universities to move toward a more efficient management of institutional resources through the discipline of Enterprise Risk Management (ERM).
With this as a backdrop, the University Risk Management and Insurance Association (URMIA) appointed a task force of risk managers and authors to prepare this White Paper on Enterprise Risk Management. The goal is to provide URMIA members and institutional colleagues with both a better overall understanding of risk management and to provide resources on how to implement the ERM process.
It is not possible to provide absolute steps for implementing ERM, since many steps, policies and procedures depends on each institution’s culture. However, the white paper does present some basic tenets of viable ERM programs.
Six components present in successful ERM programs are:
- Obtaining strong, visible support from senior management and/or the Board of Directors
- Dedicating a cross-functional group to drive the implementation and continue to push it in its operational phase
- Closely linking ERM to key strategic/financial objectives and to the business planning process
- Introducing ERM as an enhancement to well-accepted processes—not a standalone process
- Importing ideas from the outside
- Proceeding incrementally and leveraging “early wins”
In addition, in order to have a highly successful ERM program, the following must be present:
- Top-level support, commitment and participation
- Adequate breadth and depth for participation within the organization
- An understanding that ERM is a continuous process, not a one-time event
- An institutionalization of the process of risk assessment, so that the entire institution becomes involved and has ownership of the outcomes.
Name of Researcher: Oludayo Olusanya
Institution: Integrative Center for Homeland Security, Texas A&M University
Date Posted: 08/13/2008