Higher Education Industry: Emerging Risk Management Issues & Strategies
Every day, risk professionals in higher education help find ways to say yes to new ideas, initiatives, and opportunities, while managing and mitigating potential impacts to institutional resources. In this industry session at RIMS 2024, experts explored how risk managers can address a variety of emerging risks as an enterprise-wide initiative that involves every department and individual.
Speakers include:
- Lou Drapeau, Resource Manager at URMIA
- Craig McAllister, Assistant Vice President of Risk Management at University of Miami Risk Management
- Miguel Delgado, Chief Risk Officer, Risk Management and Safety at The University of Arizona
There are several complex emerging risks in higher education:
Public Perception. Polls show a declining view of the value of higher education, which has been subject to bi-partisan criticism and increased governmental insight. Public perception of higher education rated as the most worrisome issue to risk managers based on a recent survey conducted by URMIA. This stems from issues like sexual misconduct and higher ed leaders having to testify before congress.
Artificial intelligence. Working to implement a systematic approach to the identification of ever increasing categories of AI risks prior to the adoption of AI systems to supplement or place existing equipment and people. Students are using this technology to do work for them, but professors are combatting that with software that can detect use. On this other hand, is ChatGPT and related technology an opportunity to improve the higher ed landscape? Possibly.
Governance and Institutional Management. With students displaced after closings in addition to mergers and acquisitions in the last two decades, higher ed faces financial and enrollment pressures in institutional independence, adoption of culture and identity, and also puts others in a new position in preparing more of the workforce.
Hard Market Conditions. Sustained reality of the higher ed insurance markets are causing them to think creatively and work smarter to gain coverage. Sustained hard market conditions are challenging, which have caused risk intelligence, increased spend, and exposure. Some coverage seems to be disappearing for this industry, with difficulty obtaining coverage for cyber and sexual misconduct. This has a financial impact on institutions.
Unknowns and Polarization of the Political and Social Landscape. During an election year and in the wake of the recent war-related protests, institutions need to navigate challenges like debates over free speech, diversity and inclusion, and campus safety while upholding their mission of providing a safe and inclusive learning environment. Navigating free speech concerns and demonstrations requires balancing the protection of individuals’ rights with mitigating potential risks of social cohesion erosion, legal liabilities, and reputational harm within organizations and communities. Considerations include the presence of potential protestors on both sides, but also non-students entering the campus to join the protest.
Mental Health Issues. Students who feel they are not receiving related services or are being treated unfairly are willing to bring claims against their institution. The escalation of the mental health crisis for students creates additional stress on faculty and staff in addition to a strain on resources. Risk managers can help reduce barriers and look to partners for their communities, along with creating high awareness of the resources available to students.
Employment Risk and Return to Work. Effective management of return-to-work processes is crucial for mitigating legal, financial, and operational risks associated with workplace safety, productivity, and compliance. Remote work options have become a factor.
Sports Conference Challenges (i.e. students as paid employees). Changes in the athletics landscape can create ripple effects impacting revenue streams, liability exposure, and compliance obligations. Name and image likeness (NIL) rules governing college athletes being paid or receiving products for endorsing products or appearing at camps.
Coach Abuse. An alarming increase in claims have been arising from a range of coach abuse (from physical to emotional abuse), which brings this to the forefront for risk managers. This can no longer be accepted by those instructing, training, and coaching student athletes. It is important to create a safe space for students to report coach abuse issues to help mitigate this risk in addition to appropriate training for all coaches.
Title IX. Response to regulatory shifts in governmental enforcement of gender equity law is difficult. The rules continue to change and higher ed institutions are often put in the middle.
Hazing Culture. There is increased institutional accountability and decreased tolerance for this long-time risk. This can range from fraternities to sports to theater. It is important to train the students on the institution’s policies related to hazing for awareness.