Boards are most effective if they operate with a clear set of priorities and concentrate on strategic oversight, with risk management at the top of their to-do list. Boards, however, often struggle to understand their role in enterprise risk management (ERM), including how to ensure effective risk management by the administration and imbedding risk oversight in the work of the board and its committees. The Board's Role in Enterprise Risk Management service is a partnership between AGB and United Educators (UE) to provide boards and key administrators with insights, advice, and tools for change.
Specially trained AGB and UE consultants will conduct a half-day workshop for a college or university's board members and institutional leaders, focusing on a comprehensive plan to make attention to top risks a regular part of the board's work. The consultant will tailor the workshop to the institution's needs through advance conversations with the president, board chair, and chief risk officer. The workshop will bring together senior administrators, board members, and board officers to clarify their roles in risk management and to help incorporate risk into strategic discussions. Through this collaborative process, boards and administrators will work towards:
- Developing a culture of evaluating and identifying risk and determining the top five to 10 risks upon which to focus through regular reporting and discussion. This includes assessing the impact of the risks—including both the opportunities and the downsides—on the institution’s strategic plan and mission;
- Developing and testing mitigation plans, and reporting regularly on success in mitigating specific risks; and
- Monitoring identified risks and consistently scanning for emerging risks, putting in place a process for reporting, monitoring, and reassessing high priority risks.