Enterprise Risk Management at Your School:

1. Enterprise Risk Management at Your School: Getting Started Constance Neary, VP for Risk Management, United Educators Debra Wilson, Legal Counsel, National Association of Independent Schools

2. Why Enterprise Risk Management (ERM)? • Sustainability • Preparedness • Strategic planning • Internal controls • Mission Enterprise Risk Management at Your School

3. ERM Defined • A collaborative process, led by senior leadership, that extends the concepts of risk management and includes: • Identifying risks across the entire enterprise • Assessing the impact of risks to the operations and mission • Developing and practicing response or mitigation plans • Monitoring the identified risks, holding risk owners accountable, and regularly scanning for emerging risks Enterprise Risk Management at Your School

4. ERM Process Enterprise Risk Management at Your School

5. Key Players • Board of Trustees • Audit Committee • Head of School • Senior Leadership • CFO or Business Officer • Risk Owners • Risk Management Committee Enterprise Risk Management at Your School

6. Communicate • Commitment to process • Importance to school • Enlist support and participation • Key Roles • Board • Head of School Step 1:Call to Action Enterprise Risk Management at Your School

7. Focus and scope • Ongoing process • 1st– Priority risks or existing risk register • 2nd– Dig deeper for additional risks • Key Roles • CFO or Business Officer • Senior leadership Step 2:Risk Identification Enterprise Risk Management at Your School

8. Independent School Risk Register • Abuse of students/ interactions with adults • Crisis management • Curriculum redesign • Employment practices • Facilities/deferred maintenance • Health center • IT infrastructure • International students • School security • Shifting demographics • Study abroad programs Enterprise Risk Management at Your School

9. Evaluate • Likelihood risk will occur • Impact of risk on mission • Optional – velocity • Risk scoring • Key Roles • CFO and Business Officer • Senior leaders Step 3:Risk Assessment Enterprise Risk Management at Your School

10. LIKELIHOOD Independent SchoolHeat Map 9 1 • Abuse of students • Crisis management • Curriculum redesign • Employment practices • Facilities management • Health center • IT infrastructure • International students • School security • Study abroad programs 5 2 6 7 10 3 4 IMPACT 8 Enterprise Risk Management at Your School

11. Risk Score Enterprise Risk Management at Your School

12. Ownership • Subject matter expertise • Management plan with timetable • Key Roles • Senior leaders • Other risk owners • RM Committee Step 4:Mitigation Planning Enterprise Risk Management at Your School

13. Risk Management Plan/Report • Date • Name of Risk • Owner • Description of Risk • Risk Score (likelihood X impact) • Risk Objective/Treatment • Risk Score after Treatment Enterprise Risk Management at Your School

14. Case Study: Study Abroad Programs • Your school sends students on three school trips every spring break, which last roughly ten days. Two of the trips use host families and the third uses a third party vendor to manage travel around the country. • Have you planned for these program risks? Enterprise Risk Management at Your School

15. Risk Assessment • Ownership? Individual? Team? • Overall risks? • Host family trips? Third party vendors? Others? • Likelihood? Impact? • Score? Enterprise Risk Management at Your School

16. Risk ManagementPlanning • Trip review and approval • Training / Orientation – students, staff, and parents • Host family vetting • Third party vendor vetting • Waivers and Releases / Informed Consent • Insurance Enterprise Risk Management at Your School

17. Culture Points / Risk Dilemmas • Host families – worth the risk? • Third party due diligence? • Transportation due diligence? • Not all parents attend orientation session Enterprise Risk Management at Your School

18. Report to board • Top 5 to 10 risks • Approach with other risks • Monitor progress • Questions followed by updates • Key Roles • Board/Audit Committee • Head of School • CFO or Business Officer Step 5:Report and Monitor Enterprise Risk Management at Your School

19. Common Good Practices • Branding the ERM process • Tone at the top • Board and Head of School • Limiting scope and mission creep • Use of consultants • Creating a discipline Enterprise Risk Management at Your School

20. Common Concerns and Pitfalls • Micro-management by board • Exposure to potential liability • Appropriate use of legal counsel • ERM as a project • Over-emphasis on risk identification Enterprise Risk Management at Your School

21. Constance Neary Vice President for Risk Management Two Wisconsin Circle, Fourth Floor Chevy Chase, MD 20815 301-215-6411 cneary@ue.org www.ue.org