Enterprise Risk Management

Name of the student:

Name of the university:

Introduction

ERM is a proceeding with procedure that lines up with technique and changes as the
foundation's exercises and goals develop (Beasley, 2016). Risk appetite is characterized as
the executives' perspective on how much risk an institution is set up to acknowledge so as to
accomplish its targets. Like financial specialists, a few institutions are more comfortable with
risks than others. ERM centres around an institution's accomplishment of its destinations or
mission in the accompanying four regions: 1. Strategic (abnormal state objectives that are
lined up with and bolster the foundation's main goal) 2. Operational (progressing the
executives procedure) 3. Financial (security of foundation's advantages) 4. Operational (the
organization's adherence to relevant laws and guidelines). Reputational risk is regularly
included as a basic higher educational risk. Here, in the following discussion, the author has
selected seven articles for assessing the implication of Enterprise Risk Management (ERM)
in higher education (Acharyya & Brady, 2014).
 Concept Map

Higher Education
Institution

Problem

Revenue Generation Evolving enrolments Education Delivery Reputational factors

Implementing Effective Risk

Management Strategies

Budget control Increasing presence in

media or brand promotion

Assigning ownership to Infrastructure and

dedicated leaders Methodology

Opportunity to improve profitability,

enrollments of new students and a
positive reputation in market
Through the concept map of implementing ERM in higher education institute, the questions
asked could be answered in an elaborated manner describing all the concepts and their
interrelationship with each other.

The central concept of this paper is implementing enterprise risk management strategies in
the higher education institute. The complete concept map is revolving around the ERM in
higher education. In an education institution there are various problems like less revenue
generation, evolving enrolments of students, their reputation in the market as students are
opting the institutes which are famous in market and are considered as brands, and their
teaching methodology.

These concepts are related to each other as each concept will be effective when the other
concept will work out properly. If infrastructure and teaching methodology will be creative
the students will surely choose the institution for taking admission rather than going for the
other colleges, and accordingly the presence of college in media will be high resulting in a
better reputation in the market, which will surely affect the revenue and hence will increase
profitability, those increased revenue will help in control the budget and assigning goals to
different leaders by hiring new and trained staff dedicated to particular role.

The concepts are related with the ideas discussed further in the paper that how the higher
education institutes should implement ERM and what is the procedure for doing the same and
how it can be made effective in increasing the profitability and work process of higher
education institutes.

To explain in better form about the implementation of ERM in higher education the
references from seven articles have been included which will be explaining the importance of
ERM in institutes; these articles will also focus on the objectives, advantages, challenges and
implementation of ERM in higher education.
Annotated bibliography
Md. Ariff, M., Zakuan, N., Tajudin, M., Ahmad, A., Ishak, N., & Ismail, K. (2014). A
Framework for Risk Management Practices and Organizational Performance in
Higher Education. Review Of Integrative Business & Economics Research, 3(2),
422-430.

The authors of this article are the faculties of management in Malaysia. This article
was published in “Society of Interdisciplinary Business Research” and was reviewed by
Integrative Business and Economics Research. The major audience base of the paper inlcudes
the academic audiences and the management institutes and universities of Malaysia. The
author has used information from books, articles and reports. Hence, the data can be verified.
The purpose of this paper is scholarly. The paper was published in 2014. It cannot be
identified as an old publication, and hence the data may be claimed as relevant and up-to-
date. According to the authors Integration of risk management and performance management
is important. Organizations practicing risk management tend to generate better information
for improved decisions which also help in achieving the objectives. The authors also
concluded that in Malaysia's public universities a framework of risk management practices
and organizational performance is not yet established. The common method for managing
risk is relatively based on criteria specified in the UGGI, which is insufficient and lack of
systematic approach to managing risk. Therefore, a new framework for managing risk
innovatively in the universities must be explored to help the universities pursuing their
aspiration of becoming competitive higher education institutions in the education industry
throughout the globe. Thus, this framework is expected to produce a risk management
practices that will stimulates innovative idea of managing risk in higher education,
specifically in the autonomous public universities setting, and offers transformative research
idea in the area of risk management for non-profit organizations.

Rudhumbu, N. (2014). Enterprise Risk Management (ERM) Practices of Private Higher

Education Institutions in Botswana: A Critical Analysis. Journal Of Education
And Practice, 5(9), 42-50.

The author of this article is Norman Rudhumbu, who belongs to School of Business
Management, Botho University, Gaborone, Botswana. The sample for this article comprised
of executive management members and deans of all the five the private higher education
institutions in Botswana. The quantitative data approach was considered in the research and
analysis was done through SPSS analytical tool. For collecting the data the questionnaires
were provided to the sample population that consisted of some written verbal questions.
Analysis and discussion of results was done in relation to five themes namely risk
identification; risk assessment; risk response; information and communication; and
monitoring. The major findings from this article were that there is no risk ownership in
private higher education institutions as these organizations don't have committed individuals
to guarantee they take ownership of enterprise risks and are able to think of auspicious,
coordinated, orderly and far reaching hazard the executives procedures and methodology in
these organizations. Because of ineffective communication processes in these institutions,
workers and other essential partners are left out of the enterprise risk management condition
and this prompts a hole in the successful management of institution as workers and partners,
for example, providers are the general population on the ground to rapidly recognize any
prowling enterprise risks before disaster strikes. The author recommended that there should
be separate management duties, two-way communication, creation of independent risk
function, and allowing for and acting on periodic internal and external enterprise risk audits.

Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2014). Enterprise Risk
Management: Review, Critique, and Research Directions. SSRN Electronic
Journal, 48, 265-276. doi: 10.2139/ssrn.2376261

The article is written by authors in 2015 under the journal of Long Range Planning
and peer reviewed by Elsevier. This article focuses on the objectives of ERM, measurement
of ERM and how managers conceptualize the risk management in higher education. This
paper not only identifies how management scholars can contribute to ERM research, but also
points out why the development of ERM research (and practice) requires management
research. To the extent that ERM pays off in exceptional times, the use of ongoing
accounting performance to evaluate risk effectiveness may underestimate its value. If a
company's management considers both risk and return as legitimate dimensions of
performance, risk management could work even if the returns were not increased. A single
strategic decision may involve multiple risk types that occur during execution at different
times. While ERM asks managers to aggregate these into a portfolio of corporate risk,
aggregation is problematic when concepts of managerial risk differ across these different
types of risk.  To study how managers measure risk, according to the author it is necessary to
develop scales to evaluate how managers measure risk d the extent to which it is a downside -
only concept, quantification level, etc. to define and measure how managers measure risk
provides opportunities for managerial scholars. Implementation studies of ERM may address
two very different issues: adoption and implementation. To conclude author mentioned that
this paper reviewed the risk and ERM literature of academics and practitioners to develop
suggestions as to where and how management scholars can contribute to ERM research.
Management students are required to be more prescriptive and more attention needs to be
given to the effectiveness of different practices and activities contributing in the
current discussion of ERM.

Dimitrijevic, L., & Dakic, J. (2014). The risk management in higher education
institutions. Online Journal Of Applied Knowledge Management, 2(1), 137-152.

The authors of this paper are associated with the Higher Education Technical School
of Professional Studies, Serbia. This paper was published in 2014 under the Online Journal of
Applied Knowledge Management. Risk management is considered as the issue of higher
education institutions in this paper. The significance of risk management in all systems is
highlighted with a special risk management review at institutions of higher education. The
authors attempted to connect and apply their knowledge in other areas of risk management as
well as the knowledge gained from their experience in managing the institution of higher
education. The example of a higher education institution is used in risk analysis, and the
initial model has been further developed with corrections based on specifics and conditions.
To support the statement about Risk management author has also taken a case study of HETS
to explain the topic clearly. In the conclusion the authors mentioned that the risk was
classified within their own institution based on the process and activity noticed by them.
They outlined a whole spectrum of measures to prevent or minimize all the risks that they
noticed. A reference frame or model for HEI risk management has thus been created. In
future research, this model should be further refined. Future research items include: defining
the significance of certain processes and the level of risk acceptance in them; choosing a risk
management method and performing risk measurement. This paper is important as it can be
used as a starting point for further research, which should be more complex and involve
knowledge from more fields.
Sum, R., & Saad, Z. (2017). RISK MANAGEMENT IN UNIVERSITIES. In 3rd
International Conference on Qalb Guided Leadership in Higher Education
Institutions (pp. 128-142). Malaysia: Research gate.

The article is presented by authors Rabihah Md.Sum & Zurina Md. Saad in a 3 rd
International Conference on Qalb Guided Leadership in Higher Education Institutions in year
2017 and is peer reviewed by Research gate. It is difficult to determine, according to the
study, whether universities are actually implementing risk management based on publicly
accessible information such as the website of universities. Such information was rarely
published by universities. The study acknowledged that the use of publicly available
platforms such as the website of a university to determine whether they are implementing risk
management does not indicate whether the organizations are actually implementing risk
management. The purpose of this study is to provide the academic world with detailed
explanation and discussion of the importance of risk management. Management of risk has
been applied to many aspects of modern life, including banking, finance, health, life, business
ventures and project management. In terms of academic research, courses and degrees
offered, it attracts a lot of attention in universities. The Green Book University
Transformation Program emphasized risk and risk management as one of the board of
directors ' duties and roles of universities. However, risk management is absent from most
aspects of university management. The study explained and discussed risks in the university
environment, factors that drive risks and benefits gained when managing risks. It also
explained the process of risk management or risk management frameworks in university
setting. The study has helped to enhance understanding and knowledge about risk
management -risk management is not another layer of bureaucracy, but is an effective
management tool to help universities achieve their strategic goals. This study argues that risk
is not limited to large corporations or banks. There are also a host of risks facing non-profit
government agencies and higher education institutions. However, risk management practices
in Malaysia are less developed in non-profit institutions, including universities and higher
education, than in much of the corporate world. This study's future direction is to investigate
how risk management processes can be embedded in a university's basic management cycles
and develop a risk management framework that can fit a university setting.
Kageyama, A. (2014). The Implementation Process of Enterprise Risk Management in
Higher Education Institutions. International Review Of Business, 3(14), 61-80.

This article was published in 2014 under the Journal of International review of
business by Akio Kageyama, focusing on the implementation process of enterprise risk
management in higher education institutions. This study aims to show a sample framework of
Enterprise Risk Management (ERM) for Higher Education Institutions (HEIs), especially for
those who have been slow in their implementation, using the institution that has been most
successful in implementing ERM, the University of California, as a case study. This case
shows that it takes years to build the ERM process and systems and requires cross-functional
groups and leaderships to play an important role. Many U.S. HEIs have implemented ERM,
but ERM can be implemented in different countries and cultures using different
methodologies and processes, which should be a topic of future research. According to case
study mentioned by the author University of California reviewed existing
programs and data to identify the components of its ERM framework when starting the ERM 
with the assistance of KPMG International, gathered information and held meetings with key 
stakeholders on areas such as employment practices, safety & emergency preparedness, resea
rch, infrastructure and construction, strategic procurement, student life, budget, internal contr
ols, etc. The article shows that the four phases of the ERM process are to be implemented
using 20 steps. These 20 steps are not indispensable, but most of them need to be
accomplished depending on the situation and purpose of successfully implementing ERM. It
is also important to note that any ERM process and activity should after all contribute to the
institution's sustainability, as UC's ERM has contributed for years to generating institutional
savings and revenue.

Kerstin, D., Simone, O., Nicole, Z., & Lehner, O. (2014). CHALLENGES IN
IMPLEMENTING ENTERPRISE RISK MANAGEMENT. ACRN Journal Of
Finance And Risk Perspectives, 3(3), 1-14.

This article was presented by the authors who were associated with the Accounting
and Finance department at University of Applied Science, Upper Austria in 2014 under the
ACRN journal of Finance and Risk perspectives and peer reviewed by Elsevier publications.
This article focused on the challenges during the implementation of the Enterprise Risk
management. The report shows three major silo mentality weaknesses. The first shows that in
individual divisions the risk was being monitored, but the overall risk could develop
unchecked. This approach's second weakness is the potential development of an aggressive
risk culture. This paper will discuss potential tool errors; finding the perfect framework might
be a challenge. The decision for an appropriate framework includes the selection and
implementation into the organization of an appropriate risk framework. Some of the
frameworks have advantages, such as materials from the workbook and display slides that
can help the process of implementation. This article also stated that the human factor must be
minimized to ensure that the framework suits an organization. The author concluded in the
article that one implementation challenge is to find the right framework for an entity
supported by an appropriate IT system. Even if some risks are difficult to quantify, they
should not be excluded by an organization. According to research, human errors must be
faced and this factor must be minimized throughout the entire process. The entity must be
aware of the complex environment and its organizational impact. It has been concluded
through the article that instead of waiting for best practices or additional guidance
organizations will do more to develop their individual ERM system.

Conclusion

After having a detailed study about the articles related to the implementation of Risk
management in Higher Education it is clear that ERM should be applied in all the higher
education institutes. As per the articles higher education institutes till date have not
implemented the risk management in the institutes, either due to the lack of knowledge about
risk management or they consider it unimportant for higher education institutes to have a
enterprise risk management system. The need of enterprise risk management is not only
limited to the companies and organizations but it is required for the higher education
institutes also as per the current scenario (Lundqvist & Vilhelmsson, 2016). Institutions of
higher education are under increased pressure from government agencies, the public and
campus community members to manage risks. Risk management responsibilities have
traditionally been delegated to individual operating units. The study of all the articles focuses
on why a corporate risk management strategy should be adopted by higher education
institutions and how critical success factors influence its implementation.
References

Acharyya, M., & Brady, C. (2014). Designing an Enterprise Risk Management Curriculum
for Business Studies: Insights From a Pilot Program. Risk Management And
Insurance Review, 17(1), 113-136. doi: 10.1111/rmir.12019

Beasley, M. (2016). What is Enterprise Risk Management (ERM)? [Blog]. Retrieved from
https://erm.ncsu.edu/library/article/what-is-enterprise-risk-management

Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2014). Enterprise Risk
Management: Review, Critique, and Research Directions. SSRN Electronic Journal, 48,
265-276. doi: 10.2139/ssrn.2376261

Dimitrijevic, L., & Dakic, J. (2014). The risk management in higher education
institutions. Online Journal Of Applied Knowledge Management, 2(1), 137-152.

Kageyama, A. (2014). The Implementation Process of Enterprise Risk Management in

Higher Education Institutions. International Review Of Business, 3(14), 61-80.

Kerstin, D., Simone, O., Nicole, Z., & Lehner, O. (2014). CHALLENGES IN
IMPLEMENTING ENTERPRISE RISK MANAGEMENT. ACRN Journal Of Finance
And Risk Perspectives, 3(3), 1-14.

Lundqvist, S., & Vilhelmsson, A. (2016). Enterprise Risk Management and Default Risk:
Evidence from the Banking Industry. Journal Of Risk And Insurance, 85(1), 127-157. doi:
10.1111/jori.12151

Md. Ariff, M., Zakuan, N., Tajudin, M., Ahmad, A., Ishak, N., & Ismail, K. (2014). A
Framework for Risk Management Practices and Organizational Performance in Higher
Education. Review Of Integrative Business & Economics Research, 3(2), 422-430.

Rudhumbu, N. (2014). Enterprise Risk Management (ERM) Practices of Private Higher

Education Institutions in Botswana: A Critical Analysis. Journal Of Education And
Practice, 5(9), 42-50.
Sum, R., & Saad, Z. (2017). RISK MANAGEMENT IN UNIVERSITIES. In 3rd
International Conference on Qalb Guided Leadership in Higher Education
Institutions (pp. 128-142). Malaysia: Research gate.