Enterprise Risk Management
The purpose of an ERM program is to provide reasonable assurance to the university’s management and Board of Directors that the core mission and objectives are achieved. The following fundamental reasons should be realized through an ERM program:
- the reduction of unacceptable performance variability;
- the alignment and integration of various risk management views;
- the building of confidence in the community and with stakeholders;
- the enhancements of university governance;
- the sustainability through ever-changing environments;and
- the alignment of strategy and university culture.
What is Enterprise Risk Management?
A systematic, coordinated, and disciplined set of policies, processes, and tools, as well as an organizational structure, that enables ongoing:
- Identification, assessment, and prioritization of the major risks associated with the university’s key objectives;
- Development, implementation, and monitoring of risk mitigation activities; and
- Independent and objective evaluations of risk mitigation activities.
An enterprise risk is:
- any event, condition, or action that could substantially impair the university’s ability to achieve its objectives or execute its strategies.