Code: 2780
Plan for the Sour Notes: Managing Risk in Academic Advising 2012 NACADA National Conference Dr. Bob Hurt, C.F.E. Professor of Accounting, Cal Poly Pomona Faculty Advising commission chair, 2012 - 2014
Outline
Importance of risk management
COSO framework
Framework application
Conclusion
Importance of risk management
Risk comes from not knowing
Successful organizations have
what you're doing. (Warren
learned that the higher the risk,
Buffett)
the more necessary it is to
You can measure opportunity
engage everyone's commitment
with the same yardstick that
and intelligence. (Margaret
measures the risk involved.
Wheatley)
They go together. (Earl Nightingale)
Importance of risk management Higher ed is not immune to risk, as shown by the cases summarized on the following
slides.
Importance of risk management
UNC Chapel Hill The university has determined that fraudulent and serious irregularities were found in more than 50 courses from summer 2007 through summer 2009 in the Department of African and Afro-American Studies. In particular, independent study courses with little oversight were singled out as problematic, and forging of faculty signatures has been alleged. The Herald Sun. 26 August 2012.
Importance of risk management
Inholland College The Inholland College was alleged to have given easy passes to struggling students to boost its income, while former administrators were accused of fiddling expenses, The
Telegraaf newspaper reported. http://www.timeshighereducation.co.uk 1 September 2011
Importance of risk management
California State U San Bernardino [KHP professor] Kinzey is accused of running a methamphetamine-selling operation out of his Highland home.
The Press Enterprise 21 August 2012
Importance of risk management
Generic risks associated with academic advising
FERPA violations
Forged signatures
Sexual harassment
COSO framework
Acronym for the Committee of Sponsoring Organizations of the Treadway Commission on Fraudulent Financial Reporting
(www.coso.org)
Developed a well-accepted model for managing risk called Enterprise Risk Management: Integrated Framework
COSO framework Internal environment Objective setting
Monitoring Enterprise Risk Information & communication
Management—
Event identification
Integrated Framework
Control activities
Risk assessment
Risk response
Source: Accounting Information Systems: Basic Concepts and Current Issues (3rd edition) by R. L. Hurt. McGraw-Hill / Irwin, 2013.
Framework application
Internal environment
Readings, seminars, “brown bag” discussions
Lack of knowledge regarding conditions for academic probation
Objective setting Minimize the number of students on academic probation for multiple terms
Event identification
Risk assessment High
Framework application
Risk response
Reduce Avoid
ERM plan posted on web site
Control activities
Annual advisor workshops Advising videos
Information & communication
Monitoring
Annual survey Bi-annual staff retreat
Framework application
Participants
Advising administration
Contribute knowledge of frameworks
Communicates project importance
Advisors
Auditors / risk management personnel
Legal staff
Connect the dots and bring the advising expertise
Students Alternative perspectives
Adapted from http://rlhurtconsulting.blogspot.com/
Framework application
Tasks to complete
Form the team.
Risk response & control activities
Internal environment
Identify and describe inherent risks.
Determine the likelihood and significance of those risks. Risk assessment
Communicate the plan. Information & communication
Objective setting & event identification
Develop a sound response to the risks.
Monitor the plan. Monitoring
Conclusion
Additional questions / comments?
Author contact info Dr. Bob Hurt
[email protected] (909) 869-2372