From financial pressures to increasing regulatory scrutiny, higher education leaders have a lot to consider in order to protect their institutions. Amidst these challenges, awareness and proactive management of risks are crucial for maintaining institutional integrity and success. Here are five risks that institutions need to be aware of and address effectively.
Cybersecurity Threats
Higher education institutions are prime targets for cyberattacks due to the vast amounts of personal data they hold. Data breaches and ransomware attacks can disrupt operations and compromise sensitive information. Robust cybersecurity measures and regular training for staff and students are essential to mitigate these threats.
Financial Challenges
Declining enrollment rates, influenced by factors such as reduced birth rates and increased competition, pose significant financial risks to higher education institutions. Additionally, cuts in government funding or lower returns on endowments can strain budgets. Institutions need to diversify revenue streams and implement strategic financial planning to navigate these challenges.
Compliance and Legal Risks
Staying compliant with ever-changing regulations regarding financial aid, accreditation, and campus safety is a constant challenge for higher education institutions. Failure to address issues like Title IX violations adequately can result in severe legal and reputational damage. Institutions must remain vigilant and adaptive to regulatory changes.
Reputational Risks
It’s no secret that in recent years, higher education institutions have come under fire for various scandals, including admission irregularities, faculty misconduct, and the mishandling of sensitive situations, all of which can severely damage an institution’s reputation. In the age of social media, negative publicity and criticism can spread rapidly, significantly impacting public perception and trust. Therefore, effective crisis management and communication strategies are vital to mitigating these reputational risks.
Workforce Management
Attracting and retaining qualified faculty and staff is challenging, particularly with budget constraints. Promoting a diverse and inclusive environment is crucial for fostering a supportive educational community and complying with legal requirements. Additionally, high turnover rates can be extremely costly and increase data security risk. Effective workforce management strategies are necessary to address these issues.
By being aware of these risks and implementing proactive measures to mitigate them, higher education institutions can better safeguard their operations and ensure continued success.
College and University Breakfast Series Spring 2024
We addressed these risks and more at our most recent session of our College and University Breakfast Series. We host this webinar series twice a year to educate clients on current higher education topics. These events offer continuing education credits and serve as valuable networking opportunities.
With offices in Albany, Buffalo, Dallas, Metro New York, Rochester, and Syracuse, our experienced team of partners, principals, and managers work on-site with higher education clients to solve problems and support the success of their missions.
To learn more, watch the recorded video here: College & University Breakfast Series Spring 2024. And if you need further guidance or have any questions on this topic, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
