Process & Services

There are many risks impacting higher education, and the following examples may be helpful:

• Financial risks focus on managing the risks of potential loss of physical assets and financial resources. Business risks include contracts, cash and investments, revenue, and inventory.
• Operational risks arise from the institution’s business functions or day-to-day operations. Business risks include the effectiveness and efficiencies of the operation.
• Regulatory risks deal with the organization’s ability to ensure compliance with applicable laws, regulations, and policies. Business risks include animal and human subjects, personnel laws, safety requirements, environmental, and federal and state regulations.
• Strategic risks pertain to competitive positioning, joint ventures and partnerships, and nontraditional academic programs. Business risks include distance education, engagement, globalization, joint ventures, partnerships, and other strategic initiatives.
• Technology risks include integrity, infrastructure, and data safeguards. Business risks include audit trails, access privileges, backup and recovery, change management, data protection, and networks.

Primary considerations in establishing which units will be audited include evaluation of risk, the results of previous audits, changes in technologies and processes, and specific requests and other input. Audits for certain high risk areas are scheduled annually, while others are selected at varying intervals. In addition, internal audits are initiated to analyze possible irregularities.