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One Community College's Journey with Enterprise Risk Management  - Tom Gorman
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One Community College's Journey with Enterprise Risk Management - Tom Gorman


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From Silos to Effective Governance: One Community College's Journey with Enterprise Risk Management was presented at the EACUBO Annual Conference in Providence, RI. Tom Gorman, Director, Education & …

From Silos to Effective Governance: One Community College's Journey with Enterprise Risk Management was presented at the EACUBO Annual Conference in Providence, RI. Tom Gorman, Director, Education & Government at Accounting Management Solutions, partnered with Helen Celements, Comptroller at North Shore Community College, to deliver the presentation.

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  • 1. From Silos to Effective Governance: One Community College’s Journey with Enterprise Risk Management Helen Clements Tom Gorman, CPA Comptroller, Fiscal Affairs Director, Education & GovernmentNorth Shore Community College Accounting Management Solutions
  • 2. Agenda/Objectives• Background information on NSCC• History of ERM at NSCC• Overcoming Obstacles• Student & Enrollment Services• Development of key risk indicators• Education & Communication
  • 3. Definition of RiskRisk is: “…any issue that impacts an organization’s ability to meet its objectives. Five types of risk include: strategic, financial, operational, compliance, and reputational.” NACUBO, Developing A Strategy to Manage Enterprise Risk in Higher EducationEnterprise Risk Management
  • 4. Definition of ERMERM is: “a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affectEnterpriseand manage risks to be within its risk the entity, Risk Management appetite, to provide reasonable assurance regarding achievement of entity objectives.” COSO’s Enterprise Risk Management
  • 5. NSCC MissionNorth Shore Community College is a source of hope andopportunity and a regional leader for social and economicchange.Blending tradition and innovation, liberal arts and careerpreparation, intellectual development and cultural andpersonal growth, we foster a diverse and caring communityof learners where all are welcome and each is challenged.We offer lifelong education responsive to changingcommunity needs, a global economy, evolving technologyand the shifting roles faced by individuals and institutions.Our greatest contribution to the commonwealth is thesuccess and achievement of our students.
  • 6. Background on NSCC• Three campus locations – • Danvers – suburban setting • Lynn – urban setting • Beverly – corporate & community education• Approximately 14,000 students• 131 faculty• Operating budget of $51 million• 42% of students receive federal student financial assistance• Open-access admissions policy
  • 7. History of ERM at NSCC• Began in 2007• Initial round of risk assessments• Common roadblocks • Effort stopped - other priorities • Initial effort was limited primarily to VP-level • Lack of widespread understanding, communication and buy-in
  • 8. Inventory of DepartmentsThe initial risk assessments involved the following:Strategic:• VP of Student and Enrollment Services• VP of Administration & Finance• VP of Academic Affairs• VP of Institutional Advancement• VP of Human Resources and PayrollTactical:• Emergency Response Plan• Bookstore• Receiving
  • 9. Example of Initial Risk Assessment• [Insert Excel file]
  • 10. An assessment of the assessment… • The risk assessments and supporting documentation should Strategic Plan articulate to the College’s strategic plan. • The College should evaluate and select an ERM framework to Framework guide their assessments. Consistent Documentation • The documentation prepared by the depts. does not consistently follow the templates provided by the Comptroller’s office. E Key Risk Indicators • KRI’s will help departments focus on monitoring the impact of events on the strategic plan. R Monitoring ActivitiesResults of Initial Assessment • The activities should be specific and measurable • Training should be performed at ALL levels of the College to M Training ensure a consistent understanding. Objectives • The departmental risk assessments should consider all significant objectives.
  • 11. An assessment of the assessment…, cont. • Broader sense of awareness of risk and risk management techniques • Must include involvement of ENTIRE organization (top to bottom, side to side) • Break down silo approach to risk management • Effective implementation of ERM mustEnterprise Risk Management understand the existing culture of the organization and embed risk management into and leverage off existing assurance processes
  • 12. Strategic Plan – The place it all begins• Strategic Plan was updated in 2009• Linkage between the Strategic Plan and the risk assessments could be strengthened• Better align resources to mitigate risks linked to strategic objectives
  • 13. Overcoming Obstacles• Included references to ERM in state-mandated internal control plan• Presentation to President’s Administrative Council• Building consensus at VP level to move forward Moving from inertia to action
  • 14. Student & Enrollment ServicesIncludes: • Admissions • Student Services • Financial Aid
  • 16. Student & Enrollment Services ENROLLMENT SERVICES ADMISSIONS & ENROLLMENT & RECORDS RECRUITMENT/OUTREACH Director DirectorAcademic AcademicCounselor Counselor Academic Veterans Services Associate Registrar Coordinator CoordinatorAcademic Clerk IVCounselor Administrative AdministrativeClerk IV Assistant II Clerk IV Assistant II Clerk IV Clerk IV Clerk IV Clerk IV Clerk IV Clerk IV Clerk IV
  • 17. Updated Risk Assessment Process• Focused on individual interviews• Group interview with clerks from across all 3 components of SES• Summarize key risks• Develop key risk indicators• Validate and reconfirm
  • 18. Summary of Key RisksKey risks focus on: • Operational risk • Compliance risk • Reputational risk • Financial risk
  • 19. Summary of Key Risks, cont.The key risks identified include: • Open admissions policy allows greater access but places a burden on student support services • Physical security of campus buildings • Non-compliance with federal, state and institutional policies and procedures • Loss of accreditation (at entity and program-level) • Changes to federal regulations (e.g. ATB)
  • 20. Response to Key RisksAction in response to the risk of non-compliance withfederal, state and institutional policies and proceduresincludes: • Established a finance committee of the Board • Created compliance committee • Established protocol for coordination of external audits • Established “one-stop-shopping” model
  • 21. Development of Key Risk IndicatorsKey risk indicators include: • Internal data sources • External data sources • Financial metrics
  • 22. Education and Communication• Board-level communication• Campus-wide communication• Development of risk awareness training as part of employee orientation• Working within existing structure – Compliance Committee
  • 23. Next StepsBuild on initial success • Identify next department • Develop enhanced training programs • Expand access to resources
  • 24. Your TurnThink about ERM at your institution. What obstacles did you face? How did you overcome them?
  • 25. Contact InformationHelen Clements Comptroller, Fiscal Affairs North Shore Community College hclement@northshore.eduTom Gorman, CPA Director, Education & Government Client Practice, Accounting Management Solutions, Inc. Twitter: @HigherEdCFOStay Informed: