6 Risk Management Challenges in Higher Education

Your institution’s compliance manager and compliance committee are largely responsible for identifying, evaluating, and responding to these risks. Here are 6 common enterprise risk management challenges that colleges and universities often face.

1. Cybersecurity and Data Privacy Risks

Higher education institutions typically manage their administrative and academic needs online. Applications, financial aid information, tuition payments, assignment submissions, grades, and many other types of sensitive data require sufficient protection to enhance student privacy and the integrity of your institution. 

Because of this increased reliance on online data storage, many institutions are vulnerable to data breaches, cyberattacks, and other cybersecurity concerns. 

2. Financial and Budgetary Constraints 

Higher education institutions rely on funding from student tuition, donations, and other sources to pay faculty, construct new buildings, and fund initiatives to create more opportunities for students. This money requires careful management to ensure funds are spent wisely. 

To meet this goal, your risk management team must work closely with other departments to draft and approve appropriate budgets, prevent misuse of funds, and ensure that approved spending supports the fiscal sustainability of your institution. 

3. Legal and Compliance Risks 

Failing to comply with standards or covering up known compliance issues can cause legal concerns and reputational damage.

4. Campus Safety and Security 

Colleges and universities must take reasonable steps to keep their students safe. Your risk management team should carefully evaluate the most common safety risks, create adequate prevention and response plans, and take steps to ensure students are aware of their rights and the institution’s responsibilities for creating a safe learning environment.

5. Reputation and Public Relations Risks

A higher education institution’s reputation plays a major role in helping potential students determine if the school is the right fit. When an institution faces a major scandal or fails to provide the quality education students need for career success, prospective students may hesitate to apply.

A strong public relations team helps protect your institution’s reputation by responding to issues effectively. However, they must craft detailed responses and take full responsibility when necessary.

6. Academic and Research Integrity 

Successful higher education institutions prioritize sharing statistics about student achievements. However, they must ensure this information remains accurate and honest. Universities that ignore academic misconduct, inflate grades, misrepresent student success, support unethical research, or make other dishonest choices to enhance their image often end up damaging their reputations instead.