Early stages of UW’s ERM adoption and implementation

ITS 835

CHAPTER 9

Lessons from the Academy: ERM Implementation in the University Setting

School of Computing and Information Sciences

University of the Cumberland

Spring 2019

Dr. Zadok Hakim, Ph.D., MBA, EE.

Introduction

• Higher education environment

• ERM in higher education

• Adopting ERM in Colleges and Universities

• The University of Washington case study

• Summary

Higher Education Environment

• Generally considered “different” from enterprises

• Historically separate from targets of legislation

• Often, success may lead to lack of risk management

• Multiple high-visibility scandals have shed light on HE

• Many HEIs have migrated to more corporate ERM

• Different HE cultures demand different ERM solutions

ERM in Higher Education

• Recognition of institutional areas

▪ Each encounters unique risks • Risks can include

▪ Litigation settlements

▪ Loss

➢ Assets

➢ Enrollment

➢ Donors

▪ Reputation damage

Adopting ERM in Colleges and

Universities

• Think tank of HE to discuss ERM in HE

• 2001

• PricewaterhousCoopers • NationalAssoc of College andUniv Bus Officers

(NAUCUBO)

• Focus

• Definition of risk

• Risk drivers in HE • Implementation of risk management to assess, manage,

monitor risk

• Proactively engage the campus community

University of Washington

• Sentinel event

• $35 million fine for Medicare and Medicaid

overbilling

• Push to implement ERM to improve compliance • UW is built on a decentralized governance model

• Started with

• Strategic Risk Initiative Review Committee (SRIRC)

• Each initiative asked

• Does this proposal add value?

• What obstacles are apparent and how can they

be addressed?

• How can this proposal be improved.

• Committee recommendation • Create a Culture-Specific ERM

• Examined other HEIs

Summary

• Outcomes are consistent with guidance offered by

• National Association of College and University

Attorneys (NACUA)

• NACUA eight critical factors • Establish the right vision and realistic plan

• Obtain senior leadership buy0in and direction

• Align with mission and strategic direction

• Attack silos at the outset

• Set objectives and performance indicators

• Stay focused on results

• Communicate vision and key outcomes

• Develop a sustainable process versus a one-time

project