ITS 835Chapter 9Lessons from the Academy ERM Implementa.docx

ITS 835
Chapter 9
Lessons from the Academy: ERM Implementation in the
University Setting
Introduction
Higher education environment
ERM in higher education
Adopting ERM in Colleges and Universities
The University of Washington case study
Summary
Higher Education Environment
Generally considered “different” from enterprises
Historically separate from targets of legislation
Often, success may lead to lack of risk management
Multiple high-visibility scandals have shed light on HE
Many HEIs have migrated to more corporate ERM
Different HE cultures demand different ERM solutions
ERM in Higher Education
Recognition of institutional areas
Each encounters unique risks
Risks can include
Litigation settlements
Loss
Assets

Enrollment
Donors
Reputation damage
Adopting ERM in Colleges and Universities
Think tank of HE to discuss ERM in HE
2001
Price waterhous Coopers
National Assoc of College and Univ Bus Officers (NAUCUBO)
Focus
Definition of risk
Risk drivers in HE
Implementation of risk management to assess, manage, monitor
risk
Proactively engage the campus community
University of Washington
Sentinel event
$35 million fine for Medicare and Medicaid overbilling
Push to implement ERM to improve compliance
UW is built on a decentralized governance model
Started with
Strategic Risk Initiative Review Committee (SRIRC)
Each initiative asked
Does this proposal add value?
What obstacles are apparent and how can they be addressed?
How can this proposal be improved?
University of Washington, cont’d.
Committee recommendation
Create a Culture-Specific ERM
Examined other HEIs

UW Evolution of ERM
UW ERM Structure
UW’s ERM Integrated Framework
UW’s ERM Process
UW’s Risk Assessment: Likelihood and Impact
Summary
Outcomes are consistent with guidance offered by
National Association of College and University Attorneys
(NACUA)
NACUA eight critical factors
Establish the right vision and realistic plan
Obtain senior leadership buy0in and direction
Align with mission and strategic direction
Attack silos at the outset
Set objectives and performance indicators
Stay focused on results
Communicate vision and key outcomes
Develop a sustainable process versus a one-time project

Sheet1Program Evaluation: Line Item BudgetDepartment:
College:
: Students are estimating, so they do not need an actual
category.
-Kristen HillExpense Line ItemBudgetFaculty Staffing
SalaryFaculty Staffing BenefitsAministrative Staffing
SalaryAministrative Staffing BenefitsTechnology
CostsEquipment CostsSoftware CostsInterview CostsData
Collection Instruments CostsExternal Evaluator Costs External
Evaluator Travel/Per DiemResearch Scope of Depth
CostsSupplies and MaterialsData Analysis Time CostsTechnical
Expertise CostsEvaluation Design CostsOverhead Costs and
FeesOperating Costs (office space, utilities, etc.)Program Costs
(to support evaluation)Institutional Review Board (approval
costs)Other Direct Costs (ODC) (Note: Insert additional rows
above as necessary.)Totals:$0.00Instructions on how to annotate
items:Include, at the bottom of this budget template or in a
separate document,
explanations of budgeting choices for each line item and the
information and data that informs those choices.explanations of
budgeting choices for each line item and the information and
data that informs those choices.Note: Lines reflecting each
individual expense type (e.g., “office supplies” ) would be a
single line as opposed to multiple lines for paper, pens, tape,
and so on.
Sheet2
Sheet3
2010-2011 DataBA Mathematics Grade Distribution Data 2010-
2011Course #Course NameStudents receiving A (%)Students
receiving B (%)Students receiving C (%)Students receiving D
(%)Students receiving F (%)Average GPAMTH 101Foundations
of Mathematics 323828023.46MTH 102Discrete
Mathematics102260442.85MTH 110Elementary

Algebra203842003.24MTH 111Intermediate
Algebra123748122.68MTH 120Trigonometry103949022.75MTH
130Differential Calculus183445303.48MTH 131Integral
Calculus73157322.81MTH 210Discrete
Mathematics225028003.68MTH 310Mathematical Statistics
I123848112.92MTH 311Mathematical Statistics
II123057112.55MTH 410Intro to Mathematical
Models243045012.84MTH 411Mathematical Reasoning &
Writing284833013.36CIS 125Intro to Computer
Software345411013.87AVERAGE
PERCENT18.538461538537.6242.3811.313.11
(%)Students receiving F (%)Average GPAMTH
101Foundations of Mathematics 364024003.57MTH 102Discrete
PERCENT18.615384615418.6243.6910.853.12
2013 Course #Course NameStudents receiving A (%)Students

PERCENT22.384615384622.3841.620.53846153850.543.16
PERCENT22.384615384622.3841.620.53846153850.543.16

PERCENT1838.923076923140.61538461541.38461538461.3076
9230772.9307692308
HEA 540 Final Project Case Study Scenario
Jamestown College
BA in Mathematics
The Case
Jamestown College is a private institution that was founded in
1975. The college has a suburban setting
of 155 acres in Rhode Island. Current student enrollment is
2,750 students. The most popular majors at
Jamestown College include Business, Economics, English
Language and Literature, Science, and
Mathematics.
Vision
Jamestown College strives to maintain the quest for academic
excellence by cultivating critical thinking,
creativity, and professionalism in our student-centered
community.
Mission
Jamestown College exists to provide an efficient student
learning environment focused on the discovery,
development, declaration, and application of knowledge through

a variety of academic programs.
Through its high-quality undergraduate programs, students are
prepared to accept roles in leadership,
business, science, and mathematics as facilitated by faculty
dedicated to teaching and learning as well as
the success of all students.
Goals
Promote Academic Quality
The School of Arts and Sciences will continue to enhance
undergraduate education while promoting
high-caliber academic programs that promote student learning.
Increase Undergraduate Enrollments
The School of Arts and Sciences will continue to develop and
implement targeted plans to increase
enrollments from key markets.
Increase New Instructional Technology
The School of Arts and Sciences will continue to advance the
use of new and innovative technology in
instruction and in administrative functions, building upon the
platforms and resources currently in place.
Enhance Undergraduate Curriculum
The School of Arts and Sciences will continue to support the
development of new majors and
undergraduate programs such as science, technology, and
computational science.
Enhance Workforce Development and Lifelong Learning
The School of Arts and Sciences will continue to collaborate
with business and industry partners to
develop plans for supporting the preparation and continued skill
development of the regional
workforce.

Develop New Degrees and Certificate Programs
The School of Arts and Sciences will continue to create and
implement the development of new degree
and certificate programs that capitalize on regional needs.
Globalization
The School of Arts and Sciences will continue to develop
strategies that sustain international
relationships.
Support Diversity
The School of Arts and Sciences will continue to ensure the
broadest possible coverage that supports a
diverse environment.
Provide Student Success
The School of Arts and Sciences will continue to provide an
education centered on student learning that
will provide retention, progression, and graduation.
Build and Maintain Fiscal Sustainability
The School of Arts and Sciences will continue to build and
maintain fiscal sustainability that aligns with
Jamestown College’s mission, vision, and goals.
BA MAT Enrollment Figures
● 2010–2011 182 students
● 2011–2012 173 students
● 2012–2013 148 students

● 2013–2014 125 students
● 2014–2015 114 students
Regional Accreditation
Jamestown College is accredited by the New England
Association of Schools and Colleges (NEASC),
through its Commission on Institutions of Higher Education
(CIHE). All programs Jamestown College
offers are encompassed by this regional accreditation. The
Commission on Institutions of Higher
Education of the New England Association of Schools and
Colleges is the regional accreditation agency
for colleges and universities in the six New England states:
Connecticut, Maine, Massachusetts, New
Hampshire, Rhode Island, and Vermont. The Commission is
recognized by the U.S. Department of
Education as a reliable authority on the quality of education for
the institutions it accredits. The U.S.
Department of Education recognition of CIHE grants accredited
institutions the ability to offer federal
financial aid to U.S. students who are actively enrolled.
(NEASC: Commission on Institutions of Higher
Education, n.d.).
The Dean of the School of Arts and Sciences calls a meeting in
preparation for an upcoming program
review. He would like to conduct a self-study to determine areas
of improvement in the BA MAT
program.

Program Term Student ID Program Rating (0=worst, 5=best)
Feedback
BA MAT 2 141227 0
There wasn’t any structure to the program, no clear path from
the
beginning course to the last course. There needs to be a clear
program roadmap.
BA MAT 2 141278 2
Each syllabus needs to be clear and more specific on what is
expected.
BA MAT 2 141980 2 Clearer directions of assignments.
BA MAT 2 141987 1 There is little transition from one course
to the next.
BA MAT 2 141667 2
There needs to be a stronger connection between the books
presented and the course materials.
BA MAT 2 141552 1
Many of the instructions for the assignments were very hard to
understand.
BA MAT 2 141765 4
Suggestions and ideas of how to approach the assignment could
have been gleaned from the sharing of weekly summaries.
BA MAT 2 141321 2
The trigonometry course was extremely difficult for this level
of

education
BA MAT 2 141890 1
Did not understand why a course on computer software fits a
mathematics program.
BA MAT 2 141555 5
The best course in the program is the course on Mathematical
Reasoning.
BA MAT 2 140112 5 Calculus was hard but I learned a lot
BA MAT 2 143677 3
I was not sure where Discrete Mathematics fits in the overall
program.
BA MAT Term 2 Student Feedback Report
Student Feedback
HEA 540 Case Study Program Overview
Jamestown College
School of Arts and Sciences
Jamestown College’s School of Arts and Sciences understands
the increasing need for highly educated
individuals in the fields of arts and science to address the
diverse learning needs of a globalized society.
With this in mind, students are prepared for careers in various
fields such as environmental science,
global leadership, psychology and social work, computer
science, communications, and professional
writing. The School of Arts and Sciences programs develop

students to think critically and creatively, use
effective communication skills, conduct thorough analyses of
data, and understand how people and the
world around them work throughout the decision-making
process. All these skills and abilities are
essential for success within the public and private sectors.
Our faculty, who are highly regarded and recognized as experts
in their fields at a national level, take
pride in their diversified instruction practices and
individualized mentorship of students. Jamestown’s
School of Arts and Sciences provides a high-quality and
student-centered learning experience beyond
compare.
BA in Mathematics
Jamestown College’s School of Arts and Sciences degree
programs are developed using a balanced core
curriculum based on the arts and humanities, mathematics,
natural sciences, and social sciences. These
fundamental components ensure career versatility in a variable
and globalized marketplace.
Graduates of the Jamestown College BA Mathematics program
will distinguish themselves with their
problem-solving skills, computational and modeling abilities,
and excellent communication skills. These
skills will allow them to pursue scientific or technical careers in
industry, education, or government.
Also, the strong analytical skills gained from the program will
prepare the graduate to go on to graduate
school or to participate in creative and innovative efforts in
science, arts, humanities, engineering, and
business.
Program Outcomes

Graduates of the BA Mathematics Program will be able to do
the following after graduating:
mathematics relates to everyday problems
acceptance into a graduate program or
gainful employment
that is adaptable to changing tools
and environments and provides a solid foundation for future
learning
experience with the tactics of problem
solving and logical thinking
right questions to ask
Student Learning Outcomes
Upon completing the BA Mathematics program, students will be
able to do the following:
models

sophisticated mathematical skills
and reasoning to a variety of
audiences
mathematical models and
analyzing quantitative information
reciate the uses of abstract mathematical reasoning
wide span of contexts (e.g., the
sciences and humanities) within real-world contexts
Career Outcomes for Mathematics Majors
Your Jamestown College mathematics degree provides you with
the knowledge and skills for various
career options including those of mathematician, mathematics
teacher, actuarial, business
administrator, computer programmer, data systems analyst,
financial analyst, and others.
College-Wide Requirements
All Jamestown College students must demonstrate competence
in writing and quantitative reasoning by
meeting the following three-course requirements:

ENG Principles of Writing 3 credits
MTH Mathematics course 3 credits
FYE First-Year Experience Seminar (freshmen only) 3 credits
Core Requirements
Jamestown College prides itself on developing well-rounded
students, giving graduates a competitive
edge in their careers. To achieve this concept, students obtain a
foundational knowledge in the liberal
arts and develop a broad range of both skills and abilities
beyond a major specialization. Each
Jamestown College graduate must complete 30 credits of core
coursework. Also, students are required
to take two 3-credit courses in each of five School of Arts and
Sciences study areas: humanities, social
science, arts and design, natural science, and communications,
plus a 6-credit senior capstone
experience.
Mathematics Required Courses: 45 credits
Core
MTH 101
Foundations of Mathematics
3
MTH 102 Discrete Mathematics 3

MTH 110 Elementary Algebra 3
MTH 111 Intermediate Algebra 3
MTH 310 Mathematical Statistics I 4
MTH 311 Mathematical Statistics II 4
MTH 420 Mathematical Reasoning 3
MTH 210 Intro to Comp. Software 3
MTH 420 Discrete Mathematics 4
Advanced
MTH 120 Trigonometry 4
MTH 130 Differential Calculus 4
MTH 131 Integral Calculus 4
MTH 410 Introduction to Mathematical Models 3
Electives: 45 credits
Total: 120 credits
HEA 540 Case Study Faculty
Mathematics Administration and Faculty, Jamestown College
Leadership

President
Senior Vice President
Chief Financial Officer
Provost/Vice President for Academic Affairs
Nathan Kanzie, PhD
Susan Cranston, PhD
Barbara Clark, DBA
Michael Santiogo, PhD
Administration
Brian Keogh, PhD
Dean—School of Arts and Sciences
Sandra Feeney, PhD
Assistant Dean—School of Arts and Sciences
Steven Rand
Administrative Assistant—School of Arts and Sciences
Faculty
Fred J. Randall, PhD
Richard Blanchard, PhD
Thomas Jamison, PhD
Carol Vegas, PhD
James Stevenson, PhD
John Vargas, PhD
Department Chair of Mathematics
Assistant Professor of Mathematics and Computer Sciences

Associate Professor of Mathematics and Computer Sciences
Associate Professor of Mathematics and Computer Sciences
Adjunct Faculty
Carl Anderson, PhD
Hayden Carnavale, MA Mathematics
Samantha Green, MA Mathematics
Anthony Mondo, MS Mathematics
Denise Matthews, MS Mathematics
Adjunct Professor of Mathematics
HEA 540 Module Five Peer Review Guidelines and Rubric
Overview: In the Module Four short paper assignment, you
shared your recommendations for improving the academic
program based on evaluation data and
driven by standards from accreditation and regulation agencies.
Now it is time to calculate the costs of those recommendations
Prompt: There is an old adage that says there is no such thing as
a free lunch. In this case, perhaps, there is no such thing as a
cost-free recommendation. In this
discussion, you will share your estimated budget to implement
the recommendations you made.

This assignment will consist of an initial post and at least two
response posts, as in a regular discussion. Complete your initial
post by Thursday at 11:59 p.m. of
your local time zone. Complete the minimum of two response
posts by Sunday at 11:59 p.m. of your local time zone.
Specifically, the following critical elements must be addressed:
restate your recommendations in the discussion.
categories in the Budget Template. You may add categories if
you think there are other costs
associated with your academic program, though you must
address at least the categories provided.
feature of Microsoft Excel, footnotes, or some other system to
connect the numbers and the
narrative. For example, what numbers went into your
calculations? How do you know these numbers are accurate?
and relevant to the field of higher education; otherwise, the
estimates you provide will lack
accuracy.
Review the budgets and explanations of at least two of your
peers and look for
opportunities to both praise the existing work as well as suggest
opportunities for improvement, such as costs that might be
added, deleted, revised, or
clarified.

Rubric
Guidelines for Submission: Attach your spreadsheet to your post
or link to your spreadsheet within the text of your post (e.g., if
you use Google Sheets). Be sure
that your justification is shared as part of, or in addition to, the
budget document. Respond to your peers as you usua lly do
within a discussion.
Critical Elements Proficient (100%) Needs Improvement (80%)
Not Evident (0%) Value
Recommendations Res tates recommendati ons Does not res
tate recommendati ons 5
Budget Completion Provi des es ti ma tes for each of the
categori es i n the budget templ ate
Provi des es ti mates for the categori es i n the
budget templ ate, but categori es are
i ncompl ete or i naccurate
Does not provi de es ti mates for the
categori es i n the budget templ ate
15
Justification Expl ai ns i n detai l the cos t i nputs that were
us ed to cal cul ate each category i n the
budget templ ate
Expl ai ns the cos t i nputs that were us ed to
cal cul ate categori es i n the budget templ ate,
but expl anati on l acks detai l or i s i ncompl ete

Does not expl ai n the cos t i nputs that were
us ed to cal cul ate each category i n the
budget templ ate
30
http://snhu-
media.snhu.edu/files/course_repository/graduate/hea/hea540/hea
540_budget_template.xlsx
Realistic Estimates
Us es real i s tic cos t es ti mates that are
appropri ate to the fi el d of hi gher educati on
Us es cos t es ti mates , but es ti mates are not
real i s ti c and/or are i nappropriate to the
fi el d of hi gher educati on
Does not us e cos t es ti mates 20
Engagement Provi des comprehens i ve and rel evant
res pons e pos ts wi th expl anati on and detai l
Provi des s omewhat rel evant res pons e pos ts
wi th s ome expl anati on and detai l
Provi des res pons e pos ts that are generi c
wi th l i ttl e expl anati on or detai l
20

Articulation of
Response
Submi s s i on has no major errors rel ated to
des i gn, ci tati ons , grammar, s pel l ing, s yntax,
or organi zati on
Submi s s i on has major errors rel ated to
or organi zati on that negati vel y i mpact
readabi l ity and arti culation of mai n i deas
Submi s s i on has criti cal errors rel ated to
or organi zati on that prevent unders tandi ng
of i deas
10
Total 100%
ITS 835
Chapter 6
Strategic Risk Management at the LEGO Group
Introduction

LEGO Group history
Strategy
Legacy risk management
Enterprise risk management at LEGO
The PAPA model
Risk management ROI
LEGO Group History
Headquarters in Billund, Denmark
Second largest toy manufacturer (globally)
Founded in 1932
Iconic bricks first introduced
Bricks manufactured since 1958 fit with one another
2400 different brick shapes
Manufactured in plants across four countries
LEGO Strategy
LEGO mission
“Inspire and develop the builders of tomorrow”
LEGO vision
“Inventing the future of play”
Growth strategy
Innovation strategy
ERM at LEGO
Risk management developed in 4 stages
Step 1: Enterprise risk management
Step 2: Monte Carlo simulations
Step 3: Active Risk & Opportunity Planning (AROP)
Step 4: Preparing for Uncertainty
Order is by initiation sequence
Steps 1 & 2 are damage control
Steps 3 & 4 are proactive

ERM Step 1: Enterprise Risk Mgmt
ERM Step 2: Monte Carlo Simulations
Monte Carlo simulation
Method of evaluating the effect of input variances on a model of
a complex system
In short, it helps to see how input variances affect outcomes
Helps to define risk tolerance
Implemented in three areas
Budget simulation
Credit risk portfolio
Consolidation of risk exposure
ERM Step 3: AROP
Active Risk Assessment of Business Projects (AROP)
Formal approach to defining and handling project risk
Includes multiple steps
Identification
Assessment
Handling
Reassessment
Follow-up
Reporting
ERM Step 4: Preparing for Uncertainty
Preparing for Uncertainty
Defining and Testing Strategies
Workshops precede strategic planning sessions
Four scenarios

Agree on two key drivers of uncertainty
Describe each of four quadrants of 2x2 matrix
Define strategic issues
Actions to take
“who is doing what by when?”
The PAPA Model
Park, Adapt, Prepare, Act: PAPA
Park
Adapt
Prepare
Act
Risk Management ROI
Strong support from upper management
Efforts have resulted in value
Many LEGO key planning processes now include risk
management
More visibility of enterprise risk
More opportunity to address risk
Summary
Risk management is not risk aversion
ERM allows LEGO to take risks when appropriate
Grow
Create value
LEGO strategic risk management mission
“Drive conscious choices”
Chapter 6 presented the approach the LEGO Group used to
implement ERM, and chapter 9 presented a discussion and case

study on implementing ERM in a higher education environment.
Please explain how ERM adoption and implementation in the
higher education (HE) environment differs from the for-profit
environment. Cite specific examples from this week’s readings.
To complete this assignment, you must do the following:
A. Create a new thread. As indicated above, explain how ERM
adoption and implementation in the higher education (HE)
environment differs from the for-profit environment. Cite
specific examples from this week’s readings. In your
explanation, discuss at least three points or aspects in which the
implementing ERM in the two environments differ.

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