|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|||||||||
|
|||||||||||
|
|||||||||||
|
|||||||||||
|
|||||||||||
|
|||||||||||
|
|
||||||||||
|
|||||||||||
|
|
|
|
||||||||
|
|||||||||||
|
|
||||||||||
|
|
||||||||||
Introduction
We have witnessed how a lack of effective internal controls and financial irregularities can devastate a corporate organization. And higher education is not immune to this. We are experiencing new risks brought on by our State's financial crisis, new security threats and more global education.
In order to respond most effectively to our full spectrum of risks while leveraging these risks to our competitive advantage, Carolina has adopted an enterprise-wide approach to its risk management. Enterprise Risk Management (ERM) is a culture-based approach to holistically addressing all the University's risks - including our operational, financial, strategic, compliance and reputational risks under one umbrella. As diverse as we are, this is a daunting task. However, it's also this diversity that makes this so important.
Definition of "Enterprise Risk Management"
Carolina defines Enterprise Risk Management as a coordinated approach to assessing and responding to all risks that affect the achievement of the University’s strategic and financial objectives, including both upside and downside risks.
Implementing Enterprise Risk Management
Carolina's move to an ERM culture should not be viewed as an entirely new campus initiative, but rather a natural progression of what has taken place for years. In many aspects, our ERM framework has always been in place. At its foundation is our leadership's commitment to the interests of our students, employees, guests and stakeholders.
Other ERM strategies that have recently been implemented include:
Five-year financial plans whereby we identified, prioritized and mapped all aspects of the University's most critical risks
The realignment of certain functions and their reporting structures so that risks at the interface points of these functions can be managed easier
Having our Foundations be subject to regular financial audits pursuant to new government accounting standards
Stricter corporate governance that provides greater transparency to our stakeholders
More empowerment and responsibilities given to our Internal Audit Department
Greater emphasis on our code of ethics
New methods to how we gather information about risks, analyze, apply and learn from the results
Enterprise Risk Management Advisory Committee
Carolina also established the Enterprise Risk Management Advisory Committee in 2003 which is represented by leadership from a broad area of the University. The Committee collaborates on a holistic approach to identifying and managing the full range of risks the University faces and advises the Vice Chancellor for Finance and Administration of these strategies.
The Committee champions these strategies and is charged with communicating them to each member’s respective areas so that all stakeholders take ownership. A common language for managing our risks will be established with a balanced view between upside and downside risks – one that attempts to minimize hazards, influence and control uncertainties, and manages opportunities.
