21
Enterprise Risk Management at Your School: Getting Started Constance Neary, VP for Risk Management, United Educators Debra Wilson, Legal Counsel, National Association of Independent Schools
| Date post: | 22-Dec-2015 |
| Category: |
Documents |
| Upload: | scott-short |
| View: | 213 times |
| Download: | 0 times |
Enterprise Risk Management at Your School:
Getting Started
Constance Neary, VP for Risk Management, United Educators
Debra Wilson, Legal Counsel, National Association of Independent Schools
Enterprise Risk Management at Your School 2
Education’s Own Insurance Company
Why Enterprise Risk Management (ERM)?
Sustainability
Preparedness
Strategic planning
Internal controls
Mission
2/27/2014
Enterprise Risk Management at Your School 3
Education’s Own Insurance Company
ERM Defined A collaborative process, led by senior leadership, that
extends the concepts of risk management and includes:
Identifying risks across the entire enterprise
Assessing the impact of risks to the operations and mission
Developing and practicing response or mitigation plans
Monitoring the identified risks, holding risk owners
accountable, and regularly scanning for emerging risks
2/27/2014
Enterprise Risk Management at Your School 4
Education’s Own Insurance Company
ERM Process
Call to Action
Risk Identification
Risk Assessment
Mitigation Planning
Report and Monitor
2/27/2014
Enterprise Risk Management at Your School 5
Education’s Own Insurance Company
Key Players Board of Trustees
Audit Committee
Head of School
Senior Leadership
CFO or Business Officer
Risk Owners
Risk Management Committee
2/27/2014
Enterprise Risk Management at Your School 6
Education’s Own Insurance Company
Step 1:Call to Action
Communicate
Commitment to process
Importance to school
Enlist support and participation
Key Roles
Board
Head of School
2/27/2014
Call to Action
Risk Identification
Risk Assessment
Mitigation Planning
Report and Monitor
Enterprise Risk Management at Your School 7
Education’s Own Insurance Company
Step 2:Risk Identification
Focus and scope
Ongoing process
1st – Priority risks or existing risk
register
2nd – Dig deeper for additional
risks
Key Roles
CFO or Business Officer
Senior leadership
2/27/2014
Call to Action
Risk Identification
Risk Assessment
Mitigation Planning
Report and Monitor
Enterprise Risk Management at Your School 8
Education’s Own Insurance Company
Independent School Risk Register Abuse of students/
interactions with adults
Crisis management
Curriculum redesign
Employment practices
Facilities/deferred
maintenance
Health center
IT infrastructure
International students
School security
Shifting demographics
Study abroad programs
2/27/2014
Enterprise Risk Management at Your School 9
Education’s Own Insurance Company
Step 3:Risk Assessment
Evaluate
Likelihood risk will occur
Impact of risk on mission
Optional – velocity
Risk scoring
Key Roles
CFO and Business Officer
Senior leaders
2/27/2014
Call to Action
Risk Identification
Risk Assessment
Mitigation Planning
Report and Monitor
Enterprise Risk Management at Your School 10
Education’s Own Insurance Company
Independent SchoolHeat Map
1) Abuse of students
2) Crisis management
3) Curriculum redesign
4) Employment practices
5) Facilities management
6) Health center
7) IT infrastructure
8) International students
9) School security
10) Study abroad programs
IMP
AC
T
9
1
37
25
8
6
4
LIKELIHOOD
2/27/2014
10
Enterprise Risk Management at Your School 11
Education’s Own Insurance Company
Risk ScoreScore
Risk
IMPACT
1-2 Insignificant/Mid 3 Moderate 4-5 Significant/Catastrophic
Minimal impact on annual operations, reputation or
financial condition.
Could delay plans in place, short-term programs affected, and require
moderate management effort; 1-6 months’ recovery.
Long-term and significant effect on ability to recruit students, faculty, financial support; material breach of
confidence & reputation.
x
LIKELIHOOD
1-2 Unlikely 3 More Likely 4-5 High Probability
Unlikely to happen in the near future and no immediate
action is needed.
More an likely to occur and management should begin to
mitigate.
High probability event/risk will occur within a year; immediate action plans
needed.
=
TOTAL RISK SCORE
2/27/2014
Enterprise Risk Management at Your School 12
Education’s Own Insurance Company
Step 4:Mitigation Planning
Ownership
Subject matter expertise
Management plan with
timetable
Key Roles
Senior leaders
Other risk owners
RM Committee
2/27/2014
Call to Action
Risk Identification
Risk Assessment
Mitigation Planning
Report and Monitor
Enterprise Risk Management at Your School 13
Education’s Own Insurance Company
Risk Management Plan/Report Date
Name of Risk
Owner
Description of Risk
Risk Score (likelihood X impact)
Risk Objective/Treatment
Risk Score after Treatment
2/27/2014
Enterprise Risk Management at Your School 14
Education’s Own Insurance Company
Case Study: Study Abroad Programs
Your school sends students on three school trips
every spring break, which last roughly ten days.
Two of the trips use host families and the third
uses a third party vendor to manage travel
around the country.
Have you planned for these program risks?
2/27/2014
Enterprise Risk Management at Your School 15
Education’s Own Insurance Company
Risk Assessment
Ownership? Individual? Team?
Overall risks?
Host family trips? Third party vendors? Others?
Likelihood? Impact?
Score?
2/27/2014
Enterprise Risk Management at Your School 16
Education’s Own Insurance Company
Risk Management Planning Trip review and approval
Training / Orientation – students, staff, and parents
Host family vetting
Third party vendor vetting
Waivers and Releases / Informed Consent
Insurance
2/27/2014
Enterprise Risk Management at Your School 17
Education’s Own Insurance Company
Culture Points / Risk Dilemmas
Host families – worth the risk?
Third party due diligence?
Transportation due diligence?
Not all parents attend orientation session
2/27/2014
Enterprise Risk Management at Your School 18
Education’s Own Insurance Company
Step 5:Report and Monitor
Report to board
Top 5 to 10 risks
Approach with other risks
Monitor progress
Questions followed by updates
Key Roles
Board/Audit Committee
Head of School
CFO or Business Officer
2/27/2014
Call to Action
Risk Identification
Risk Assessment
Mitigation Planning
Report and Monitor
Enterprise Risk Management at Your School 19
Education’s Own Insurance Company
Common Good Practices Branding the ERM process
Tone at the top
Board and Head of School
Limiting scope and mission creep
Use of consultants
Creating a discipline
2/27/2014
Enterprise Risk Management at Your School 20
Education’s Own Insurance Company
Common Concerns and Pitfalls
Micro-management by board
Exposure to potential liability
Appropriate use of legal counsel
ERM as a project
Over-emphasis on risk identification
2/27/2014
Education’s Own Insurance Company
All information provided is of a general nature and is not intended to address the circumstances of any particular individual or entity.
No one should act upon this information without appropriate professional advice after a thorough examination of the facts of the particular situation.
Copyright © 2014 by United Educators Insurance, a Reciprocal Risk Retention Group. All rights reserved. Contents of this document are for members of United Educators only. Permission to post this document electronically or to reprint must be obtained from United Educators.
Constance NearyVice President for Risk Management
Two Wisconsin Circle, Fourth Floor
Chevy Chase, MD 20815
301-215-6411
www.ue.org
