Research paper: Implementing ERM in higher education

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IMPLEMENTING ERM IN HIGHEREDUCATION

Annotated Bibliography on implementing ERM in higher education

Divya Charitha

University of the Cumberland’s

ITS 835 – Enterprise Risk Management

Dr. Charles Lively

June 2nd, 2019

Wessels, J. S., & Sadler, E. (2015). Risk management in higher education: An open distance learning perspective. Southern African Business Review, 19(2), 74-98.

This article is related t a single case study for an open distance learning institution which is employed by a lot of researchers. The credibility of research is good and based on strong evidences using more than one unit of observation. Transferability of the findings obtained in this research are also well taken care of. The solution is constructed by considering the qualitative content analysis of the organization’s enterprise risk management framework. There were two reading strategies that were followed namely, reproductive and hermeneutic reading strategies. It has also indicated that the solution it formulated is meeting the ISO 31000:2009 standard, which is apt for promoting institutions mission, long term goals and meeting all the regulator compliances in an ever-changing international higher education landscape.

Sum, R. M., & Saad, Z. M. (2017). Risk Management in Universities. In 3rd International Conference on Qalb-Guided Leadership in Higher Education Institutions (iQALB 2017).

This article aims to deliver elaborate explanation on the significance of enterprise risk management. They achieved this through a university transformation program that emphasizes the importance of risk and risk management as one of the primary roles of the board of directors for any university. It discussed in detail about the risks involved if the risk management is neglected and what could be gained if they are managed effectively. The future of this study is to embed the core principles of risk management into the basic cycles of its university. In an effort to identify important risks and plans to mitigate them they devised a 5-step process. The higher education institutions and non-profit organizations discussed in this paper are based on Malaysia, but they can be applied holistically to any higher education institution.

Mustapha, W. M. W., & Abidin, N. H. Z. (2017). Internal Audit and Risk Management Practices among Public Universities in Malaysia.

This article is formulated based on public universities in Malaysia, and primarily addresses the scenarios if best practices are neglected in risk management for higher education. Here a university is compared to a small city and board of directors are compared to risk managers. Good news being, the loss rates were significantly lower compared to the industrial sector. But if neglected, school’s reputation, future endowments, future admissions and financial strength might be at risk. Apart from that, opinions of internal auditors at 20 different universities are considered, which was obtained through a questionnaire survey. Due to the explanatory nature of the survey, the responses are analyzed using descriptive statistical analysis. The findings show that most of these universities have an internal audit, which is in line with the requirements set up by the treasurer. Most of them are already involve in evaluating the effectiveness of risk management process. Older universities already achieved an advance level of evaluations, where as newer universities are still struggling to develop them.

Lundquist, A. E. (2015). Enterprise Risk Management (ERM) at US colleges and universities: Administration processes regarding the adoption, implementation, and integration of ERM.

This is an article aims at administration processes regarding adoption, implementation and integration of ERM (Enterprise resource management) in Western Michigan University. As it is a public university, this methodology can be conveniently applied to various public universities especially in the United States. It considers about the various external factors such as institutional culture, which play a critical role in the decision to adopt ERM. This research aims to understand various aspects that effect the decision-making process that result in the adaption of ERM.

Ariff, M. S. B. M., Zakuan, N., Tajudin, M. N. M., Ahmad, A., Ishak, N., & Ismail, K. (2014). A framework for risk management practices and organizational performance in higher education. Review of Integrative Business and Economics Research, 3(2), 422.

Though higher education is the one which creates the leaders of tomorrow, it is far behind businesses and corporations that implemented successful enterprise risk management. This article agrees to the fact that Enterprise risk management is quintessential for an organization’s survival. But they are all for-profit organizations. It is a unique situation on how these principles can be applied to the field of education. Therefore, they came up with a new framework that is tailored to manage risk for the higher education systems. This framework manages the risk in higher education, specifically in autonomous public university setting and offers solutions that are not generic in nature.

Wu, M., Nurhadi, D., & Zahro, S. (2017). Developing Risk Management as New Concept to Manage Risks in Higher Educational Institutions. International Journal of Risk and Contingency Management (IJRCM), 6(1), 43-53.

This article summarizes that the role of risk management is crucial in higher education systems that have expectations as a world-class institution. It emphasizes the role of communication among the leaders of all organizations and their staffs in successful implementation of an enterprise risk management solution. It discusses the current challenges of globalization, online learning and the wealth of free information available over the Internet and its impact on student enrollment and future endowments. Quoting all these facts, it emphasizes quantitatively how ERM is quintessential for survival of an educational institutions and public universities. The focus of research is done closely on the education system in the UK.

Abdullah, N. A. M., Zakuan, N., Khayon, M., Ariff, M. S. M., Bazin, N. E. N., & Saman, M. Z. M. (2012). Adoption of enterprise risk management practices in organization: A Review. Int. J Busi. Inf. Tech. Vol, 2(1).

This paper is mainly focused on adaption of Enterprise risk management practices in an organization. The concerns of the current literatures to the ERM and an elaborate review of previous studies was gathered. They found out that in many of the new educational institutions, the knowledge of ERM is sparsely acquired due to the lack of subject matter expertise. It incorporates the findings from the North Carolina State university (US) and institutions in Malaysia. Solutions were driven from five different higher education institutions in Malaysia, China and the United States. Drivers to the enterprise risk, conceptual models’ propositions, are drawn using complex quantitative analysis. It concludes with a note that the success of any institution depends on the way of identification by the management, and timely analysis and reaction to the risks that arise within an organization. It also insists on the fact that presence of barriers and lack of identified factors as the reasons that any organization would not have a proper ERM system.