When to Buy New Electronics? Now!
Every day we use products bearing the label “Made in China”, a mark that has become synonymous with the affordable mass production of countless ...
Recent history indicates that the pace of change in Higher Education is unprecedented; however, institutions are only seeing a modest increase in the use of risk-based decision making. The COSO “Enterprise Risk Management - Integrated Framework” defines ERM as “a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.”
Value in ERM
The value of ERM lies in understanding risk, and appropriately allocating an organization’s resources to business activities that present high risk and exposure to its strategic purpose and its ability to prosper. ERM offers a framework for effectively managing uncertainty, responding to risk and harnessing opportunities as they arise. By focusing on, dedicating resources to, and continuously monitoring these business activities, an institution can continuously improve its operations and its value.
ERM in Higher Education
In the current highly competitive environment, colleges and universities are under intense pressure to attract and retain faculty and students and maximize their assets – something that cannot be achieved without tight control of risks across the board. ERM can assist in uncovering both downside risks and upside opportunities for institutions to achieve their objectives. Focused attention on key business, using activities such as, but not limited to, the following will aid in achieving an institution’s goals.
How Internal Audit Can Help?
ERM is a business process led by senior leadership that extends the concept of risk management and includes conducting an enterprise risk assessment. Internal Audit can assist with this ERM in the following ways:
Visit Schneider Downs Risk Advisory’s Services webpage https://www.schneiderdowns.com/risk-advisory-services.
The general rule under Internal Revenue Code §451 is that an item of income shall be included in gross income for the taxable year or receipt unless ...