1. 2012 NACADA National Conference Dr. Bob Hurt, C.F.E. Professor of Accounting, Cal Poly Pomona Faculty Advising commission chair, 2012 - 2014 Code: 2780

2.  Importance of risk management  COSO framework  Framework application  Conclusion

3.  Risk comes from not knowing what you're doing. (Warren Buffett)  You can measure opportunity with the same yardstick that measures the risk involved. They go together. (Earl Nightingale)  Successful organizations have learned that the higher the risk, the more necessary it is to engage everyone's commitment and intelligence. (Margaret Wheatley)

4. Higher ed is not immune to risk, as shown by the cases summarized on the following slides.

5.  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.

6.  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

7.  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

8.  Generic risks associated with academic advising FERPA violations Forged signatures Sexual harassment

9.  Acronym for the Committee of Sponsoring Organizations of the Treadway Commission on Fraudulent Financial Reporting (www.coso.org)www.coso.org  Developed a well-accepted model for managing risk called Enterprise Risk Management: Integrated Framework

10. Enterprise Risk Management— Integrated Framework Internal environment Objective setting Event identification Risk assessment Risk response Control activities Information & communication Monitoring Source: Accounting Information Systems: Basic Concepts and Current Issues (3 rd edition) by R. L. Hurt. McGraw-Hill / Irwin, 2013.

11.  Internal environment Readings, seminars, “brown bag” discussions  Objective setting Minimize the number of students on academic probation for multiple terms  Event identification Lack of knowledge regarding conditions for academic probation  Risk assessment High

12.  Risk response Reduce Avoid  Control activities Annual advisor workshops Advising videos  Information & communication ERM plan posted on web site  Monitoring Annual survey Bi-annual staff retreat

13.  Participants Advising administration Communicates project importance Advisors Connect the dots and bring the advising expertise Students Alternative perspectives Auditors / risk management personnel Contribute knowledge of frameworks Legal staff Adapted from http://rlhurtconsulting.blogspot.com/

14.  Tasks to complete Form the team. Internal environment Identify and describe inherent risks. Objective setting & event identification Determine the likelihood and significance of those risks. Risk assessment Develop a sound response to the risks. Risk response & control activities Communicate the plan. Information & communication Monitor the plan. Monitoring

15.  Additional questions / comments?  Author contact info Dr. Bob Hurt robert.hurt@gmail.com (909) 869-2372