Article

Thriving amidst turmoil

How enterprise risk management can empower colleges to overcome uncertainty

Feb. 12, 2025 · Authored by Adrienne Larmett, John A. Rogula

Colleges and universities today face an unprecedented wave of disruptions. Political shifts, executive orders, regulatory changes and evolving federal funding priorities have upended the higher education landscape. The rapid pace of these changes shows no signs of slowing, leaving institutions in a constant state of adaptation. Leaders must grapple with a host of challenges, from changes in immigration policies affecting international student enrollment to funding uncertainties and shifting societal expectations.

Yet, while the challenges are great, so are the opportunities. Institutions that embrace a proactive approach to risk management will be best positioned to navigate uncertainty and emerge stronger. This is where Enterprise Risk Management (ERM) plays a crucial role, providing a framework that not only helps colleges respond to current disruptions but also prepares them for future challenges and opportunities. ERM empowers institutions to shift from reactive to proactive crisis management and to strategic resilience, ensuring that they can adapt to change while staying true to their academic mission.

What is ERM?

Enterprise Risk Management is an organization-wide approach to identifying, assessing, managing, and monitoring risks that could impact or escalate an institution’s ability to achieve its goals. Unlike traditional risk management, which often focuses on specific areas like finance or compliance, ERM takes a holistic view, addressing risks across all facets of the institutional enterprise. This includes financial stability, regulatory compliance, strategic direction, operational excellence, reputational concerns and the broader external environment. ERM fosters a proactive, adaptable culture that anticipates risks, manages them effectively and turns challenges into opportunities.