Top Risks in Higher Education and Why Leaders Must Have ERM Programs

Justin Kollinger, Senior Risk Management Consultant at United Educators (UE), brings valuable perspective in helping colleges and universities develop strategic risk initiatives. As co-author of "Risk Management: An Accountability Guide for University and College Boards" and creator of UE's annual Top 10 Risks report, Kollinger works with institution leaders to develop strategic risk initiatives, prioritize risk management goals, and launch enterprise risk management programs.

Higher Ed's Current Risk & Liability Environment

The higher education sector faces what United Educators calls "social inflation" - increases in insurance costs above regular inflation. This trend is driven by:

• Increased third-party litigation financing
• Growing recruitment of plaintiffs to bring cases
• Rising defense costs
• Higher settlements and awards

Top Risks in Higher Education

McNaughton and Kollinger discuss these top risks revealed in the UE's annual survey:

1. Enrollment
2. Data Security
3. Operational Pressures
4. Recruitment and Hiring
5. Regulatory and Legal Compliance
6. Student Mental Health
7. Funding
8. Facilities and Deferred Maintenance
9. Public Safety
10. Three-way tie:
    • General Premises Safety
    • Title IX
    • Political and Societal Pressures

Notable findings include the consistency of the top seven risks over the past three years despite 2024's tumultuous environment. Surprisingly, climate change and environmental risks did not make the top ten despite increasing natural disasters affecting campuses nationwide.

Enterprise Risk Management in Higher Education

Dr. McNaughton noted that only about 5% of institutions have formalized risk management programs. Both experts emphasized that when creating strategic plans, institutions must include risk management planning, or they leave themselves exposed. Risk management should distinguish between:

• University Level: Risk management and identification
• Board Level: Risk oversight and appropriate questioning

Data Security Challenges

The conversation highlighted growing concerns about data security:

• Rising costs for data breach coverage
• Need for centralized IT management
• Growing sophistication of phishing attempts with AI
• Importance of comprehensive security training

Three Takeaways for University Presidents and Boards

1. Culture of Risk Management ("Cool Head, Warm Heart")

• Manage risk with thoughtful foresight and consistent policies
• Show care to your community before, during, and after incidents
• Focus on building trust through demonstrated care and communication

1. Elevate Your Risk Manager

• Risk managers often know everything happening on campus
• They have unique problem-solving tools
• They should be positioned as strategic contributors
• If you don't have a risk manager, get one

1. Use Third-Party Experts

• Take advantage of insurer resources (like UE's checklists and online courses)
• Utilize insurance broker resources
• Access association resources and experts
• Remember these experts are part of your support ecosystem
  
  

Kollinger's insights emphasize that while establishing risk management programs may seem daunting, having basic frameworks in place can help institutions better prepare for and respond to various challenges. His message underscores the importance of both strategic thinking and demonstrated care in building effective risk management programs.

The changing landscape of higher education requires leaders to remain vigilant in their approach to risk management, making it an essential component of institutional strategy and governance.

#HigherEducation #HigherEducationRiskManagement #HigherEducationPodcast

Read the transcript on our website: https://changinghighered.com/top-risks-in-higher-education-erm-programs/

Links to Resources:

• UE's Top Risks Report: Insights for Higher Education 
  
  
• UE's Large Loss Report (featuring settlements over $2.5 million)
  
  
• Risk Management: An Accountability Guide for University and College Boards (AGB)

• Enterprise Risk Management In Higher Ed Part 1: An Overview of the Planning Process

• Enterprise Risk Management in Higher Ed Part 2: Risk Planning and its Critical Role in Higher Education

• Enterprise Risk Management in Higher Ed Part 3: Risk Oversight and the Board’s Role in Higher Education Risk Management

• Strategic Risk Planning to Chart Higher Ed’s Course in Turbulent Times
  
  
• What is Enterprise Risk Management in Higher Education?

 

 

About Our Podcast Guest

Justin Kollinger serves as Senior Risk Management Consultant at United Educators, an education-owned liability insurance carrier serving 1,500 institutions across the country. In his role, Justin advises college and university leaders as they develop strategic risk initiatives, prioritize risk management goals, and launch or refresh enterprise risk management (ERM) initiatives. He co-authored Risk Management: An Accountability Guide for University and College Boards, published by AGB Press, and creates reports and tools to help United Educators’ members address their top risks, including risks relating to enrollment and student life. Risk & Insurance recognized Justin as one of its Risk All Stars in 2023, and Justin has previously worked in enrollment at two private institutions in the Mid-Atlantic and as a consultant to community college presidents and independent heads of school.

Connect with Justin Kollinger on LinkedIn →

About the Podcast Host

Dr. Drumm McNaughton is the founder, CEO, and Principal Consultant at The Change Leader, Inc. A highly sought-after higher education consultant with 20+ years of experience, Dr. McNaughton works with leadership, management, and boards of U.S. and international institutions. His expertise spans key areas, including accreditation, governance, strategic planning, presidential onboarding, mergers, acquisitions, and strategic alliances. Dr. McNaughton’s approach combines a holistic methodology with a deep understanding of the contemporary and evolving challenges facing higher education institutions worldwide to ensure his clients succeed in their mission.

Connect with Drumm McNaughton on LinkedIn→