Practical Enterprise Risk Management using the COSO Framework
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Transcript Practical Enterprise Risk Management using the COSO Framework
Code: 2780
Plan for the Sour Notes:
Managing Risk in Academic
Advising
2012 NACADA National Conference
Dr. Bob Hurt, C.F.E.
Professor of Accounting, Cal Poly Pomona
Faculty Advising commission chair, 2012 - 2014
Outline
Importance of risk management
COSO framework
Framework application
Conclusion
Importance of risk management
Risk comes from not knowing
Successful organizations have
what you're doing. (Warren
learned that the higher the risk,
Buffett)
the more necessary it is to
You can measure opportunity
engage everyone's commitment
with the same yardstick that
and intelligence. (Margaret
measures the risk involved.
Wheatley)
They go together. (Earl
Nightingale)
Importance of risk management
Higher ed is not immune to risk, as shown
by the cases summarized on the following
slides.
Importance of risk management
UNC Chapel Hill
The university has determined that fraudulent and
serious irregularities were found in more than 50
courses from summer 2007 through summer 2009
in the Department of African and Afro-American
Studies. In particular, independent study courses
with little oversight were singled out as problematic,
and forging of faculty signatures has been alleged.
The Herald Sun.
26 August 2012.
Importance of risk management
Inholland College
The Inholland College was alleged to have
given easy passes to struggling students to
boost its income, while former administrators
were accused of fiddling expenses, The
Telegraaf newspaper reported.
http://www.timeshighereducation.co.uk
1 September 2011
Importance of risk management
California State U San Bernardino
[KHP professor] Kinzey is accused of running a
methamphetamine-selling operation out of his
Highland home.
The Press Enterprise
21 August 2012
Importance of risk management
Generic risks
associated with
academic advising
FERPA violations
Forged signatures
Sexual harassment
COSO framework
Acronym for the Committee of Sponsoring
Organizations of the Treadway Commission
on Fraudulent Financial Reporting
(www.coso.org)
Developed a well-accepted model for
managing risk called Enterprise Risk
Management: Integrated Framework
COSO framework
Internal environment
Objective setting
Monitoring
Enterprise Risk
Information &
communication
Management—
Event identification
Integrated Framework
Control activities
Risk assessment
Risk response
Source: Accounting Information Systems:
Basic Concepts and Current Issues (3rd
edition) by R. L. Hurt. McGraw-Hill / Irwin,
2013.
Framework application
Internal environment
Readings, seminars,
“brown bag” discussions
Lack of knowledge
regarding conditions for
academic probation
Objective setting
Minimize the number of
students on academic
probation for multiple
terms
Event identification
Risk assessment
High
Framework application
Risk response
Reduce
Avoid
ERM plan posted on
web site
Control activities
Annual advisor
workshops
Advising videos
Information &
communication
Monitoring
Annual survey
Bi-annual staff retreat
Framework application
Participants
Advising administration
Contribute knowledge of
frameworks
Communicates project
importance
Advisors
Auditors / risk
management personnel
Legal staff
Connect the dots and bring
the advising expertise
Students
Alternative perspectives
Adapted from
http://rlhurtconsulting.blogspot.com/
Framework application
Tasks to complete
Form the team.
Risk response & control
activities
Internal environment
Identify and describe
inherent risks.
Determine the likelihood
and significance of those
risks.
Risk assessment
Communicate the plan.
Information &
communication
Objective setting & event
identification
Develop a sound
response to the risks.
Monitor the plan.
Monitoring
Conclusion
Additional questions /
comments?
Author contact info
Dr. Bob Hurt
[email protected]
(909) 869-2372