Introduction
Organizations, companies, educational institutions, and governments, face different challenges and threats every day, and the need to plan for undesirable future events is a critical requirement for any organization (Berg, 2010, p.80) There are times when the risk factors are unforeseen, catching the organization by surprise. Other instances are beyond human control, like disaster strikes and natural phenomena. In most cases, however, the risk areas are known, and management carries out the task of planning for the risk by creating contingency plans or determining ways to avert the risk. In extreme cases, the organization might choose to absorb the losses caused by an occurrence of a risk event (Investopedia, 2012). Researchers and risk managers have developed risk management processes, and this paper will discuss the traditional six-step risk management process using CSU-Global as the reference organization. CSU-Global is a not-for-profit higher education institution based in Colorado, with a global reach, and a commitment to make education available to many people across the world, as well as reduce student debts.
CSU-Global Risk Management
Colorado State University Global Campus is an affiliate of the Colorado State University System, a network of institutions that are governed by the same team. The CSU-Global was the first online university to be accredited in Colorado, and it aims to make education accessible to everyone. CSU-Global is run by an advisory council that gives its recommendations to the administration. The council is committed to ensuring that the global objectives of the university are met and that the academic programs are designed with the interest of the learner and global needs in mind. The cost of studying in CSU-Global is relatively lower, compared with other universities. The fees paid by students cover administration costs and salaries to instructors and subordinate staff ("About CSU-Global - Who We Are - CSU-Global Campus," n.d.).
Objectives of CSU Global
CSU-Global aspires to enhance the Colorado state economy, human capital and quality of life by offering courses that equip students with the tools for success in a global setup. By enhancing the access to education, the institution plans to have as many people as possible with university degrees and unlock the potential of the poor students who could not afford college education before. The University reconciles its objectives with global needs, and a dynamic environment that needs more qualified people that before. The target population for the CSU-Global is the non-traditional student; those students who would not access university education at the current market rates and costs. In essence, CSU-Global operates in a niche designed for the poor or lowly paid workers. The backdrop is that there should be no impediment to the access of university education. The University is accredited by the education, meaning that the courses meet the criteria and standards elaborated by the Higher Education Commission. In the education sector, accreditation serves as an endorsement for the university to offer the course in question. Accreditation also keeps the institution under the lenses of the education commission, a body that ensures that quality is adhered to, and standards are observed.
Exposures to loss and risk
As a not-for profit organization, CSU-Global is not highly exposed to market forces that hinder the attainment of profit targets. However, this does not mean that the university is free from risk exposures. First, the fact that it offers its degrees online may amount to impersonation and dishonesty. Simply, it means that the institution is pressed by the lack of proper measures to ensure that the registered students are the same people who take the exams. Another risk exposure is the possibility of a failure to attain budget targets because many of the students come to CSU-Global seeking for scholarships and subsidies. In an event that the university does not meet the financial objectives, or the monies required to run it smoothly, then it will be exposed to financial pressures that can affect the quality of education. Lastly, as a not-for profit organization, the university faces two layers of regulation; from the education board, federal and state government agencies. Compliance with one body might hinder the extension of services to students as it creates an administration dilemma that can mess up the priorities of the institution.
Measuring exposures/analyzing risk
After determining the exposures of the institution to the risks mentioned above, the next step is to analyze the risks and the potential losses to the University. For starters, the main risk areas identified are; financial constraints, academic dishonesty, and overlapping regulations. For the advisory board and the administration of the institution, lacking finance would be a heavy blow to the prospects of creating human capital and contributing to the better economy in Colorado. In short, the university cannot meet its objectives without finances. The three main risks identified can be checked against their potential impact on the institution. The determination of the threat of the risk factors will then be classified into likelihood and consequence tabulation. For instance, lack of financial resources can have a catastrophic impact on the running of the institution, but its likelihood is low. On the other hand, the likelihood of academic dishonesty is very high, as the university has no clear structures that would ensure that students do no cheat or copy exams, but the impact of academic dishonesty may not be so high since it will be attributed to the individual instead of the institution. Lastly, for the regulative environment, noncompliance would be disastrous to CSU-Global because it would pose a threat on being stripped the accreditation by the higher education commission. With a careful approach, however, one can argue that it not very likely that the university management and advisory board would breach regulation procedures; hence, it is very unlikely that the university will not be compliant.
Evaluating the risks and establishing alternatives
Determination of the ways to handle the risks is a rigorous process that makes use of an iterative simulating process, to make a guess on the mitigation approaches to the risk (Berg, 2010, p. 83). For example, preventing a situation of financial constraints may entail increasing fees charges on students, looking for collaborative organizations to offer subsidies, or partnering with the government (Federal and State) to cushion the poor students from additional fees charges. On the other hand, solving the problem of academic dishonesty may require that students take their exams using a camera activated computer so that the supervisor or instructor may determine whether the exam was taken in good faith. Other measures would include checking plagiarism and holding oral exams. Having students take exams with camera supervision might play down the attractiveness of the institution and conduct physical, oral exams would contradict the fundamental essence of online studying. Checking plagiarism may not capture the real problem, because, academic assistance does not necessarily mean lifting content from publications. The evaluation of the alternatives gives the risk manager a clear idea of what he is dealing with and increases the chances of making an educated decision on the choice of choices.
Implementing the solution
After analyzing and evaluating the intervention actions, the risk manager chooses the best alternative for management of the risk. The selected option might be a response measure at the level of prevention, reduction or reaction. In the case of CSU-Global, and for the academic dishonesty risk exposure, for example, the solution will be adopting measures that discourage students from getting involved in academic malpractices, with a view to reducing the cases of dishonesty and saving the name of the institution. On the other hand, the council can put in place checklists that ensure that standards are managed internally. In this approach, the internal compliance scale demands more than the regulative framework, making sure that the threat of noncompliance is completely removed. For the financial constraints, the university council can adopt surplus budgets, or cost in a provision for unforeseen events, so as to cushion the institution from acute cash shortages.
Monitoring and evaluation
Risk management does not end with the implementation of a solution. More often than not, risk management runs cyclically, prompting managers to keep reviewing the whole risk management process. In some cases, managers may find out that they chose an alternative that did not mitigate the risk entirely, or a new approach to the risk might emerge, leading to s shift in focus and solution. For CSU-Global, the risks can be checked using an audit method that ensures that there is compliance. Having an in house risk manager can help in measuring and evaluating of risks, for the institutional response.
Conclusion
The traditional six step risk management process offers an easy procedure and framework to deal with risks and threats. The needs of organizations differ, and the process can be tweaked to suit those needs. The implementation of solutions is the most technical part, as it requires checking and rechecking, sometimes making manager drop approaches that have incurred them costs.
References
About CSU-Global - Who We Are - CSU-Global Campus. (n.d.). Retrieved from https://csuglobal.edu/about/who-we-are/our-mission
Berg, H. (2010). RISK MANAGEMENT: PROCEDURES, METHODS, AND EXPERIENCES. RT&A, 1(2), 79-87. Retrieved from http://ww.gnedenko-forum.org/Journal/2010/022010/RTA_2_2010-09.pdf
Investopedia. (2012, January 1). Risk Management Definition | Investopedia. Retrieved from http://www.investopedia.com/terms/r/riskmanagement.asp
