Enterprise Risk Management
University-wide risk management serves as an Enterprise Risk Management (ERM) process to identify potential events and manage risks throughout East Texas A&M University’s campus. This approach transforms the traditional risk management methodology from a fragmented and reactive framework to an integrated, continuous, and comprehensive strategy. Effective risk management involves recognizing potential risks and exercising sound judgment to eliminate, limit, transfer or accept them.
Risk encompasses any issue or event that may negatively affect East Texas A&M’s ability to achieve its objectives. These risks can impact the university at large and may include:
- Strategic risks (affecting goal achievement and competitive positioning)
- Financial risks (loss of resources or assets)
- Operational risks (management processes, administrative procedures and controls)
- Compliance risks (adherence to laws and regulations, safety and environmental considerations, litigation and conflicts of interest)
- Reputational risks (concerns of varied constituencies, political situations and media relations)
- Technology risks (issues related to computing infrastructure, applications and security)
Implementing Enterprise Risk Management constitutes sound strategic planning. ERM promotes a consistent and systematic approach to risk management, enabling thorough evaluations of activities, assessment of new initiatives and optimization of opportunities. Furthermore, ERM fosters improved communication and facilitates the effective management and coordination of mitigating measures.
Once risks are identified, they are ranked based on their potential impact and the probability of occurrence, employing a three-tier system of high, medium, and low rankings. The final phase involves determining mitigating activities, monitoring measures, and reporting processes. Each department retains responsibility for managing its specific risks.
The ERM plan at East Texas A&M entails presenting identified risks to the campus chief compliance officer to be included in the East Texas A&M Risk Matrix. The officer reviews and approves which risk items and monitoring activities should be added to or removed from the matrix. Subsequently, the officer prepares a final report for the university president’s approval.
The primary objective is to enhance awareness of risks that could impact East Texas A&M’s mission and to address these risks within daily operation.