1. A paper presented for the TEM Conference, Sydney, Australia 27 th -30 th August 2006 Presentation by Anne Walker, Risk Manager Massey University New Zealand Risk and Reward: an international review of strategic risk management in Universities.

2. ‘Improved risk management will make a real difference to Universities seeking to achieve higher levels of performance and a sustained competitive advantage’

3. Presentation Outline Risk in Higher Education The Study Observations Conclusions

4. Environmental factors Flexibility Relevance Quality Compliance Economies Stakeholders

5. Risk – what is it? “a threat or possibility of something that an action or event will adversely or beneficially affect an organisation’s ability to achieve its objectives” HEFCE, 2001 “the chance of something happening that will impact on objectives” AS/NZS4360:2004

6. Risk Management “the culture, processes and structures that are directed toward realising potential opportunities, whilst managing adverse effects” AS/NZS4360:2004

7. Perspectives of Risk Strategic Risk – affect goals Financial Risk – loss of assets or income Operational Risk – affects ongoing management processes Compliance Risk – relates to law, regulations, and internal processes Reputation Risk – external reputation

8. Levels of Risk Management Practice Perspective Compliance Operation Strategic Hazards compliance Uncertainty Opportunity Focus of risk management activity InternalExternal Value added

14. Strategic Challenges Opportunity Internationalisation Demographic changes Infrastructure Research reputation Stakeholder challenges

15. Increasing risks Compliance e.g. health and safety, Turnbull Report, HEFCE directives Environmental e.g. hazardous substances, terrorism Financial e.g. fiscal constraints, employment relations

16. Focus of the risk management activity Compliance –Primary focus on compliance issues Financial and Operational focus –Comprehensive risk registers –Risk identified and evaluated according to established criteria –Review processes

17. Links to Strategic Planning Risk assessment as part of the planning process Role of the Governing body Examples of good practice

18. Levels of Risk Management Practice Perspective Compliance Operation Strategic Hazards compliance Uncertainty Opportunity Focus of risk management activity InternalExternal Value added Type AType BType C Hazards compliance Uncertainty Hazards compliance

19. Levels of Risk Management Practice Operational focus Admin resource Risk Register Internal/external focus Most areas included Review processes Includes all in Type A Strategic goal focus Dedicated high level resource All areas are included Linked to planning Includes all in Type A and B Health and Safety Legal Compliance Risk register Internal focus Type AType BType C

20. Opportunities to supporting innovation process Embed risk assessment into planning processes at all levels Establish a sound compliance base and leverage from this Keep it simple Recognise ‘one size does not fit all’ Focus on the risks that matter AS/NZS4360 process

21. Establish the Context Identify Risks Analyse Risks Evaluate Risks Treat Risks Communication & Consultation Monitor & Review Access Risks AS/NZS 4360 Risk Management Standard

22. Conclusions Risk management is still evolving in the tertiary sector. Move towards best practice, and towards integration with planning. ‘One size does not fit all’ Process could be enhanced using the AS/NZS4360 Opportunity for further research in the area

23. ‘Improved risk management will make a real difference to Universities seeking to achieve higher levels of performance and a sustained competitive advantage’

24. Acknowledgements Thank you  Managers and staff of the Universities visited.  Massey University  ATEM