Map E.R.M

In today’s world, there are different types of risks. And these risks are equally applicable to every organization out there. Risk exploitation always ends with some loss to the organization. Risk could be some type of a natural disaster like “Katrina” or some type of governance crisis or could also be a simple expense account abuse. Therefore the magnitude of loss is directly proportional to the type of risk. Considering the institutions of higher educations like Universities, there are risks because of so many different domains this organization has to deal with. Right from storing student details and complying FERPA and dealing with e-commerce payment and complying with GLBA, an institution of higher education has to deal with a lot of risks and therefore having a proper enterprise risk management framework is not a luxury but is a dire requirement.

In this conceptual map, I have stated the problem that there are risks and with the help of enterprise risk management we would like to enable our institutions to be better prepare for risks and make efficient use of resource available. If I were to list out probable risks an institution could face then it would start with 1) governance failure meaning sudden resignation/demise or scandal of a prominent leader in the governing body 2)also maintaining the privacy of records of student/teachers/administrative personnel 3)also complying with various laws, regulations 4)also making sure the safety in the campus 5)also making sure IT systems are maintaining CIA qualities 6) also supporting timely audit & reporting with ease and making it transparent and 6) also keeping the organization prepared for any natural disaster.

A well-matured enterprise risk management will help an organization achieve a lot more than what I have stated. In a nutshell, an ERM implementation will benefit the organization in the following ways:1) making environment culturally adaptable to risk management and improving overall outlook of people around it 2) setting and outlining set of standards to produce a well organized streamlined approach to notify, generate and analyze reports. 3) By properly documenting steps and procedures to take during the events of risk exposure, an ERM can enable an organization to make the best use of its resources. 4) training and workshops conducted to familiarize people and made people more aware ERM reduces the chances of losses, and finally, standardized protocols can streamline the communications channels and improve coordination for better management of complete life cycle of risks.

Revised concept map of ERM implementation in the Institute of Higher Education