Executive Recommendations

Division of Risk Management

EXECUTIVE SUMMARY OF RISK ASSESSMENTS AND RECOMMENDATIONS

For this Executive Summary I chose to show and emphasize risks I and those college employees I interviewed identified as needing specific and immediate attention by the college at this time. The selection of these risks as priority is based on three factors: 1) the risk itself, and the extent to which the college was or was not doing something to minimize the risk based on my interviews with college employees and knowledge of college operations, 2) level of the Source of the Risk, highest, moderate or lowest, 3) the frequency and severity of the identified risks. All the risks identified by this analysis and the resulting assessment, comments and recommendations for action are shown in the detailed Risk Assessment, Frequency and Severity and Recommendations Worksheets, which follows this Executive Summary. Based on the analysis I performed, the highest priority risks, evaluations and recommendations are shown in this Executive Summary.

The information below contains the identified Source of Risk, identified examples of the risk, the area of college operation impacted by the risk, the description of possible losses or expenses to the college, a frequency/severity estimate of the risk, comments on the current status of action being taken, the recommendations for further action and the department that probably should begin working on implementing the recommendation. .

Risk Assessments and Recommendations From Group 1- Highest Priority

1. Source of Risk: Employees, Volunteers and Students: Risks arising from the college employing personnel, using volunteers and serving/teaching students. Ranking on the Source of Risk Scale of 1 to 3 at 1 = Highest

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Identified Risks/Examples of Risks:1. Employment practices, employee turnover, volunteer management2. Benefits administration3. Staff/student/volunteer illness, injury and accidents4. ADA, FERPA, affirmative action and other student/employee regulation issues. 5. Wage and hour issues6. Employee discipline/dismissal7. College succession needs8. Loss of key employees9. Language and communication issues10. Illegal release of personal information11. Failure to act on Affirmative action12. Younger students on campus13. Student trips14. Confidentiality of information issues15. Student/employee/volunteer misconduct16. Harassment issues.

A. Impact of Risk/Loss on Financial ResourcesPossible Losses/Expenses: Major problems or violations could consume significant quantity of college funds.

Freq. /Severity EstimatesFreq.-ModerateSeverity-High

Comments, Status and Recommendations: College has D & O insurance policy to provide funds for the defense of teachers, staff and Board. AG’s office represents the college at no direct expense. The cost of training new employees is significant.

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RECOMMENDATIONS AND RESPONSIBLE DEPARTMENT: 1. Maintain reserve fund for contingencies.- Business Services2. Continue to use AG’s office for major legal issues.- President’s office and Risk Management3. Update Policy and Procedures Manual and begin auditing for compliance.- Risk Management

B. Impact of the Risk of Loss on Human ResourcesEmployee/student/volunteer problems could significantly impact human resources workload. If HR doesn’t know the problems that exist, this could have big legal impact on the college. Problems could affect moral of many employees. Frequency/Severity Estimates Freq.-Moderate Severity-High

Comments, Status and Recommendations: New HR Director and Dean of Risk Management are helping to get current issued resolved. Training for supervisors on major employee and student regulations is planned for Spring 2005. Student liability forms are being redesigned. Spanish speaking employees are taking English classes.

RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS: 1. Revise the Admin. Procedures Manual and publish an Employee Handbook with a section on these issues. -- Risk Management and Human Resources. 2. Review the Faculty Handbook relating to these issues.—Learning and Risk Management 3. Review and if needed strengthen the college policy on release of information.—Marketing and Public Relations

4. Require documentation of all absences from college for any purpose.—Human Resources 5. Adopt an Affirmative Action Plan. –President and Human Resources

6. Encourage acceptance of a multicultural workforce through exposures and training classes for supervisors and employees.—Human Resources and Professional Development.

7. Start and continue a pro-active program of professional development for supervisors and employees so they know the college policies and relevant regulations and laws.—Professional Development

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C. Impact of the Risk of Loss on Public Perception of CollegeEven minor issue could erode public confidence, major issues could destroy college image Frequency/Severity Estimates Freq.-ModerateSeverity-High

Comments, Status and Recommendation:RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS

1. Consistently follow college policies and procedures in reporting any violations or incidents to the press.—President and Marketing/Public Relations.

2. Keep the public informed-be proactive.—Public Relations3. Start and continue a pro-active program of professional development for supervisors and employees so they know the college

policies and relevant regulations and laws. – Professional Development4. Keep the Board informed of all potential issues of this kind.—President’s office5. Publish information from time to time about the college as a good place to work. –Human Resources and Marketing/Public

Relations.

D. Impact of the Risk of Loss/Expenses on College Service Delivery

Preoccupation with these problems can take the focus away from college mission and reduce confidence in the college. Upset employees don’t give good service. Upset students can interrupt learning for others.

Frequency/Severity Estimates: Freq.-LowSeverity-Moderate to High

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Comments, Statue and Recommendations: Employee orientation program is beginning. Students are advised of their rights in on-line orientation.

RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:1. A strong employee orientation is needed.-Professional Development and Hiring Units2. Review current and if needed develop new specific procedures for employees/students to follow if violations/incidents occur.

—Risk Management, Human Resources, Learning. 3. College develop a more proactive training plan to help prevent any violations/incidents—Professional Development and Risk

Management.

2. Source of Risk: Use of Technology: Risks arising from the college’s use of computer and other technology to conduct its mission. Ranking on the Source of Risk Scale of 1 to 3 is 1 = Highest

Identified Risks/Examples of Risks:1. Slow and problematic software and hardware recovery from disaster with no alternate IT site2. Possibility of insecure machines, site and data3. Loss of key employees and limited employee cross training4. Employee mistakes due to lack of technical knowledge5. Limited planning and operating IT in crisis mode6. Problems with operating two networks7. Improper access to networks and computers8. Inappropriate and illegal use of computers9. No recent IT audit10. No internal verification of data integrity11. Possibility of missed daily IT backups12. College personnel untrained to properly use IT at the college

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13. Location of most IT hardware and main IT hub in one room.

A. Impact of Risk of Loss/Expenses on Financial Resources

Funds would be required to immediately restore technology services, funds could be stolen electronically, expensive to replace key personnel quickly, if required outsourcing of functions or services could be expensive, technology mistakes can be costly.

Frequency/Severity EstimateFreq.-Moderate Severity-High

Comments, Status and Recommendations:RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

1. A complete, comprehensive college technology plan which addresses personnel as well as other issues is needed and should be updated periodically.—Institutional Technology

2. Maintain an IT reserve fund to enable quick financial response to crisis.—Business Services , Budgeting3. Contingent contracts for emergency IT services need to be in place.—Institutional Technology 4. Review insurance coverage specifically for IT equipment and software coverage.—Risk Management

B. Impact of Risk of Loss/Expense on Material ResourcesEquipment and software is expensive. Wiring and network is complex and difficult to replace quickly. Frequency/Severity Estimates Freq.-Moderate Severity-High

Comments, Status and Recommendations: RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

1. Review insurance coverage on equipment. –Risk Management and Institutional Technology2. Arrange for access to alternate equipment for restoration of operations in case of loss or damage.—Institutional Technology

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3. Review or implement written procedures for IT equipment, software and function operations to minimize errors and train staff and supervisors.—VP of Learner Support Services and Institutional Technology

4. Consider alternatives to centralized location of equipment and main distribution hub.—Institutional Technology

C. Impact of Risk of Loss on Human Resources

Personnel may be required to double-up or perform many jobs, inefficiency can become problem, personnel may feel they are underpaid and overworked, too much stress is difficult for people, personnel can reach high level of frustration.

Frequency/Severity Estimates Freq.-Moderate Severity-High

Comments, Status and Recommendations: IT personnel are competent in their jobs but stretched due to many projects. Burnout may be a problem.RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS: 1. Review, update or establish written job descriptions and technology competencies for each IT position.—Institutional Technology 2. Establish a cross training course for key IT personnel.—Institutional Technology and Professional Development 3. Establish a cross training course for key IT personnel.—Institutional Technology and Professional Development Services4. Review college policies and regulation/ laws that regulate access to electronic information, train IT staff and hold them accountable for confidentiality. – Institutional Technology and Professional Development.

D. Impact of Risk of Loss on College Service Delivery

Ability Reduced to effectively do all administrative functions and many support functions. Possible failure to meet payrolls and federal and state deadlines. Providing inaccurate information a possibility.

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Frequency/Severity Estimate: Freq.-ModerateSeverity-High

Comments, Status and Recommendations:RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS: 1. College needs a plan for backup equipment, programs and data in case current site is destroyed or damaged and a plan to deliver IT services to the college (disaster recovery plan) until this backup can take place. .—Institutional Technology. 2. Name a task force to put these plans together.—VP for Learner Resources Management and Institutional Technology

E. Impact of Risk of Loss/Expenses on Public Perception of the College

Severe image problems if normal operations aren’t restored quickly.

Frequency/Severity Estimates: Freq.-ModerateSeverity-Moderate

Comments, Status and Recommendations:RECOMMENDATION AND RESPONSIBLE DEPARTMENTS: 1. Have in place a public relations response to the public before these issues occur.—Marketing and Public Relations

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3. Source of Risk: Financial Operations: Risks arising out of the college’s fiscal affairs, including collection of revenue, payment of expenditures, and all internal and external fiscal control procedures. Ranking of the Source of Risk Scale of 1 to 3 at 1 = Highest.

Identified Risks/Examples of Risks: 1. Significant accounting problems2. Theft of Funds3. Significant receivables write off 4. Failure to follow proper accounting procedures5. Qualified audit6. Lack of proper internal controls 7. Insufficient separation of duties of financial or student records personnel

A. Impact of Risk of Loss/Expenses on Human Resources

Loss of confidence in employees and college leadership.

Frequency/Severity Estimate Freq.-Low Severity-High

Comments, Status and Recommendations: Attempt of made to hire experienced personnel in all Business Services areas. President is informed of financial status of college on a regular basis and Board is provided a financial report quarterly.RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

1. Mandate professional development training for Business Services personnel to assure they are as well trained as possible.—Business Services and Professional Development.

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2. Immediately inform college President of any irregularities or improper personnel action.—Risk Management, Human Resources and Senior Management. .

B. Impact of Risk of Loss/Expenses on Public Perception of the College

Lack of trust in NWACC, donations would be affected. Government funding could be affected. Frequency/Severity Estimates Freq.-LowSeverity-High

Comments, Status and Recommendations:RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

1. Provide the Board with monthly information status reports of financial status of college and a semi annual report of safeguards in place to limit exposure to loss.—President’s Office

2. Have a response ready as part of a Crisis Procedures Document for reporting any financial irregularities or losses. –President’s office, Risk Management and Marketing/Public Relations.

C. Impact of Risk of Loss on Liability to Third Parties

May be required to reimburse government funds and some donations

Frequency/Severity Estimates Freq.-LowSeverity-High

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Comments, Status and Recommendations: All third party contracts are reviewed and approved by Business Services. RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

1. Determine potential liability to third parties and make contingency plans.—Business Services and Risk Management2. Investigate putting waiver of liability clauses in third party plans. – Business Services and Risk Management

D. Impact of Risk of Loss/Expenses on the Community

Public Trust in NWACC could be ruined or severely diminished. Frequency/Severity EstimateFreq.-LowSeverity: High

Comments, Status and Recommendations: RECOMMENDATION AND RESPONSIBLE DEPARTMENTS: 1. Include plan to respond to problems and issues in this area in the college crisis procedures plan and build public trust in the college. Marketing/Public Relations and Risk Management.

Risk Assessments and Recommendations from Group 2- Middle Priority

1. Source of Risk: Contracts and Legal Relationships; Risks arising out of the college’s legal or contractual relationships. Ranking on the Source of Risk Scale of 1 to 3 at 2 = Moderate

Identified Risks/Examples of Risks:

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1. College or vendor breaches a contract2. College required to act according to unfavorable contract or unsatisfactory relationship with vendor or contractor3. College employee makes an unauthorized contract with a vendor or a student that legally binds the college4. Questions are raised about an existing contract with a College vendor. 5. Employee sues college over breach of contract. 6. Student or parents sue college over failure to fulfill statements in college catalog.

A. Impact of Risk of Loss/Expenses on Human Resources

Could lead to employee terminations/suspensions. Could undermine confidence of other staff.Could jeopardize student organizations or individual students.

Frequency/Severity Estimates: Freq.-ModerateSeverity-Moderate to High

Comments, Status and Recommendations: Currently, contracting authority is limited to designated employees. Employees are advised to read their memoranda of employment. College catalog contains information for students.RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:1. Review college purchasing procedures to assure they conform to state statutes and provide professional development training for department personnel.—Business Services & Purchasing2. Communicate these in summary form to college employees and provide professional development training for employees so they understand purchasing procedures.—Business Services and Purchasing3. Review student organization policies and procedures to assure they do not obligate the college without authority.—Business Services and Student Organizations. 4. Review catalog and other student publication to determine legal ramifications.—VP Learning Resources Management, VP Learning and Risk Management. B. Impact of Risk of Loss/Expense to College Service Delivery

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If vendor ceases operations this could temporarily impact ability to serve students/employees.

Frequency/Severity Estimates: Freq.-LowSeverity-High

Comments, Status and Recommendations:RECOMMENDATION AND RESPONSIBLE DEPARTMENTS:1. Have a contingency plan in place to provide services if major vendor ceases operation.—Business Services and Maintenance

C. Impact of Risk of Loss/Expense on Liability to Third Parties

College liability could increase substantially and there could be hard feelings toward college.

Frequency/Severity Estimates: Freq.-LowSeverity-Moderate

Comments, Status, Recommendations: RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

1. Third party contracts need to be reviewed by legal counsel to determine potential liability.-Business Services and Risk Management

2. Activity of third party contractors needs to be monitored to assure they are operating according to contract—Business Services and Risk Management.

3. Catalog and other student publication need to be reviewed for legal liability issues.-Risk Management, Learning and Learner Development and Support.

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2. Source of Risk: Employee, Student, Board Member or Vendor Misconduct. Risks arising from the college’s students, employees or board member’s deliberate misconduct. Ranking on the Source of Risk Scale of 1 to 3 at 2 = Moderate

Identified Risks/Examples of Risks: 1. Theft of property 2. Employees or students illegally downloading Internet information3. Abuse or harassment of employees or students4. Employee actions to sabotage college operations5. Employee actions in violation of college policies6. Employees, students or Board members release inaccurate or unauthorized college information7. False or misleading college advertising8. College employees inaccurately or wrongly advise students9. Employees or students gain unauthorized physical entry to college property10. Employees use IT access rights to improperly view/use student or employee information11. Negligent actions by employee or Board member.

A. Impact of Risk of Loss/Expenses on Financial Resources

Could consume significant amount of college funds.

Frequency/Severity Estimate Freq.-ModerateSeverity-Moderate to High

Comments, Status and Recommendations: College has policies and procedures in place in many areas that would penalize individuals who deliberately violate college policy. Employees and Board members are asked to review and be aware of these when the join the college. Public safety department monitors access to building and locks rooms when not in use. Generally, college

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information is released only by the Presidents or Director of PR office. PR office is responsible for checking information and verifying sources and accuracy.

RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS: 1. Follow-up with HR and Presidents office to assure that employees and Board members regularly are made aware of key

policies relating to misconduct.—President’s Office and Human Resources2. Check with enrollment management to determine what procedures are followed to inform students of misconduct, theft and

other similar policies and procedures. –Enrollment Management 3. Review insurance coverage for employment practices, malpractice, etc coverage.—Risk Management4. Review IT procedures to protect against deliberate misuse of information.—Institutional Technology and Risk Management.

B. Impact of Risk of Loss/Expenses on Material Resources

Minor thefts add up to fairly major losses. Sabotage could be very costly.

Frequency/Severity Estimates Freq.- ModerateSeverity-Moderate to High

Comments, Status and Recommendations: Most very sensitive materials are secured under lock. Inventory of some items is done annually but no real determination or action taken if items are missing. RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

1. Restrict use of college assets by Board, employees and students.—President’s office, Risk Management, Business Services2. Keep as many items as possible stored and locked when not in use.—Public Safety Department, Maintenance, Business Office3. Have unannounced spot-checks of material and equipment.—Public Safety, Business Services4. Adopt and audit plan as soon as possible to include auditing for college property.—Risk Management, Business Services.

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C. Impact of Risk of Loss/ Expenses on Human Resources

Employee, student, Board misconduct could have major impact. Must emphasize accountability for everyone. Frequency/Severity Estimate: Freq.-ModerateSeverity-High

Comments, Status, and Recommendations: Current employment application asks question of prior felony conviction. Generally background checks are not done before a person is hired. Separation of duties is a priority in Business Services but not too much elsewhere. RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

1. Consider a longer than 60 day probationary employment period and have background checks performed.-Human Resources2. Deal immediately and strictly with any misconduct by any student, Board member or employee.—Learning, Learner

Development, President’s office and Risk Management. 3. Identify college areas (IT, enrollment management, Public Safety, etc) where separation of duties could minimize risk of

misconduct and adopt college standards to separate duties.—Vice Presidents and President

D. Impact of Risk of Loss/Expenses on College Service Delivery

Upset or hostile employees provide poor service. Damage to facility could interrupt classes or services.

Frequency/Severity Estimate: Freq.-Moderate

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Severity-Moderate to High

Comments, Status, Recommendations: Overall service delivery has not been greatly impacted by these issues, but isolated situations have done so.RECOMMENDATIONS AND REPONSIBLE DEPARTMENTS:

1. Identify early individuals with “poor” attitudes or other symptoms and determine to rectify the situation or deal with the employee.—Supervisory Personnel at all levels, Human Resources.

2. Review screening of candidates, particularly for key or sensitive positions.—President’s office and Human Resources

E. Impact of Risk of Loss/Expenses on the Public Perception of the College

Minor issues may erode public confidence, employee “mistakes” can be handled internally, but willful acts or misconduct of employees, students or Board is serious.

Frequency/Severity EstimateFreq.-LowSeverity-High

Comments, Status and Recommendation: The college has a PR office and a weekly publication, The Insider that keeps things positive and as open as possible. RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS: 1. Keep the public informed of all activities of the college so there is no question of misconduct.-President’s office and Marketing/Public Relations.2. Consult legal counsel if there is ever a question or if conduct of an employee, student or Board member becomes an issue.—President’s office and Risk Management. 3. Deal immediately with any legal infractions by notifying appropriate law enforcement agencies.—Public Safety Department, President’s office and Risk Management.

F. Impact of Risk of Loss/Expenses on the Community

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Loss of community support and possible investigation by authorities

Frequency/Severity Estimate:Freq.-ModerateSeverity-High

Comments, Status and Recommendations:RECOMMENDATION AND RESPONSIBLE DEPARTMENT:

1. Include in crisis response plan a section dealing with these issues.—Risk Management and Marketing/Public Relations. 2. Have a list of agencies to be contacted in cases such as these.—Public Safety Department, Marketing/Public Relations,

President’s office

3. Source of Risk: Property Loss: Risks to the property that the college uses to conduct its business (owned, leased or borrowed).Ranking on the Source of Risk Scale of 1 to 3 at 2 = Moderate

Identified Risks/Examples of Risks: 1. Vehicle accidents2. Equipment or property damage due to several hazards3. Identity and/ or property theft4. Loss of or damage to college software and/or data5. Facilities or rooms left unlocked6. Inadequate or incomplete equipment/property inventory7. Inadequate building access policy8. College property used for personal needs

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9. Equipment moved from place to place with little accountability10. Inadequate or unlocked equipment storage areas11. Accidental fire sprinkler activation12. Some property not insured or inadequately insured.

A. Impact of Risk of Loss/Expense on Financial Resources

Some funds needed to replace vehicle, equipment, property. Replacing IT software and data and under or uninsured property would be more expensive.

Frequency/Severity EstimateFreq.-ModerateSeverity-Moderate

Comments, Status and Recommendations: Reserve funds are kept but no plan or priorities are in place for use if needed in case of property use. Vehicles are insured with low deductible but property damage deductible is high ($10,000). It is uncertain how IT equipment, data and facilities would be replaced. RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

1. Review insurance and consider adding critical equipment to specifically insured items to reduce deductible—Risk Management.2. Screen all drivers and inform them of safety concerns.—Maintenance and Risk Management.3. Maintain reserve fund for contingent losses of specific equipment and plan to allocate funds to replace it.—Business Services

B. Impact of Risk of Loss/Expenses on Material ResourcesVehicle, equipment, other items or information is not available when needed. Frequency/Severity EstimateFreq.-ModerateSeverity-Moderate

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Comments, Status and Recommendations: Insurance is in place for equipment and buildings. Some inventory of equipment is done in parts of the college.RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

1. Purchase backup equipment for critical items to avoid delays in replacement. –Business Services and Using Departments. 2. Expand inventory to include more items.—Business Services and Risk Management.

3. Review locking policy at all college facilities.—Public Safety and Maintenance 4. Adopt a balanced building access policy considering needs for access and protection from loss and consider an alternative to the use of keys for buildings. –Public Safety and Risk Management.

C. Impact of Risk of Loss/Expense on College Service Delivery

Some classes, service and administrative functions may be limited.

Frequency/Severity Estimates: Freq.- Moderate Severity-High

Comments, Status and Recommendations: Some classes could be moved to alternative location temporarily and services could be offered through alternative delivery methods.RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS: 1. Have contracts for temporary rental of critical equipment.—Business Services and Using Departments2. Have plan for offering classes at alternative locations within the community.—Learning3. Review insurance policies and consider business interruption insurance. –Risk Management

D. Impact of Risk of Loss/Expenses on Public Perception of the CollegeSituational- Depends on situation and press associated with loss.

Frequency/Severity Estimates Freq.-ModerateSeverity-High

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Comments, Status, Recommendations:RECOMMENDATION:1. Include in college crisis response plan policy and procedures dealing with losses and rehearse response.—Risk Management and Public Relations

4. Source of Risk: Natural Hazards; Risks arising out of natural hazards such as floods, fires, tornados, hurricanes, droughts, earthquakes, ice or snow storms, lightning strike. Ranking on the Source of Risk Scale of 1 to 3 at 2 = Moderate

Identified/Examples of Risks at NWACC: Fire, flood, tornado, ice or snow storm, lightning strike.

A. Impact of Risk of Loss/Expenses on Material Resources

Damage to and possible loss of buildings, equipment, furnishings and data.

Frequency/Severity Estimates: Freq.-LowSeverity-Moderate to High

Comments, Status and Recommendations: Some classes could be moved to alternative classrooms for a temporary period, or community sites could possibly be used. Emergency repairs would be made to existing buildings. Some specific equipment may be hard to replace quickly. RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

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1. Have in place contracts for contingent use of alternative space and have insurance to pay for rental of this space.—Risk Management and Business Services2. Identify hard to replace equipment and have vendor’s contacts and arrangements made in advance for rapid replacement.—Business Services and Maintenance.3. Have an alternate college main IT site that could fully support college operation in place of existing IT location.—Institutional Technology.

B. Impact of Risk of Loss/Expense on Service Delivery

All or portion of the classes and administrative services and technical support temporarily stopped or must be relocated or both.

Frequency/Severity Estimates: Freq.-LowSeverity-Moderate to High

Comments, Status and Recommendations: Some basic services could be performed for a limited period at alternative locations. RECOMMENDATION AND RESPONSIBLE DEPARTMENT: 1. Create and rehearse a plan to perform critical student and administrative services from an alternative site that is supported by main computers and with needed data and files. –Institutional Technology, Risk Management, President’ office, Vice Presidents, and Deans.

C. Impact of Risk of Loss/Expense on Public Perception of the College

Sympathetic if handled properly, concerns if not handled properly.

Frequency/Severity Estimates: Freq.-LowSeverity-Moderate to High

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Comments, Status and Recommendations: College is perceived in very good light in the community.RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:1. Have a NWACC crisis response plan and trained team ready to respond to such an event.—All Senior Management and Risk Management. 2. Publicize the plan in advance so public awareness in high and positive attitude about the college is enhanced.—Public Relations.

5. Source of Risk: Economic Conditions: Risks arising from the general economic conditions of the community, region, state and nation. Ranking on the Source of Risk Scale of 1 to 3 at 2 = Moderate

Identified Risks/Examples of Risks:

1. Economic downturn for nation, state or region2. Economic uncertainty if major employers relocate away from the region3. Economic uncertainty if state, regional or local tax rates increase and economic activity is affected.

A. Impact of Risk of Loss/Expenses on Financial ResourcesReduction or no increase in state funding, reduction in local millage receipts, reduction in tuition income.

Frequency/Severity Estimates Freq.-ModerateSeverity-High

Comments, Status and Recommendations: College grew and did not cut programs through two years of economic downturn and budget cuts partly because there were funds in reserve. Board mandates 8-10 % carry over of funds each year. RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:1. Begin an endowment for the college to help reduce the impact of state funding reductions and reduced local tax income.—College Foundation.

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2. Continue requirement of a reserve carry over each year.—Business Services3. Do program analysis annually to assure that funds are used as efficiently as possible.—Institutional Assessment and Analysis.

B. Impact of Risk of Loss/Expenses on Human Resources

Possible freeze on hiring new employees or actual reduction in workforce.

Frequency/Severity Estimates: Freq.-Moderate Severity-High

Comments, Status, Recommendations:RECOMMENDATION AND RESPONSIBLE DEPARTMENT:1. Have a staff reduction plan in place so that personnel decisions can be made in an orderly manner and professionally—Human Resources.

C. Impact of Risk of Loss on College Service Delivery

If staffing ratios are increased, service level may be affected. Might have to postpone or cancel new initiatives due to limits in personnel.

Frequency/Severity Estimate Freq.-ModerateSeverity-High

Comments, Status and Recommendations:RECOMMENDATION AND RESPONSIBLE DEPARTMENTS: 1. Determine in advance what “priority services” are for the college and plan for elimination of others as needed. Maintain efficient operations to minimize impact of funding cuts on services.—President’s office, Business Services, Senior College Management.

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5. Source of Risk: State or federal laws or regulations: Risks arising from the implementation of laws and regulations that apply to the college and affect how it conducts is business. Ranking on the Source of Risk Scale of 1 to 3 at 2 = Moderate

Identified Risks/Examples of Risks: 1. Cost of implementing regulations and responding to state and federal government2. Violation of federal, state or local laws or regulations3. Improper accounting for funds on federal or state grants4. Failure to properly follow federal or state grant procedures5. Fines and lawsuits associated with federal and state laws6. Expense of federal and/or state over-site of college operations

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A. Impact of Risk of Loss/Expenses on Public Perception of the College

Loss of public confidence if violations occurred.

Frequency/Severity EstimateFreq.-ModerateSeverity-High

Comments, Status and Recommendations: RECOMMENDATION AND RESPONSIBLE DEPARTMENT:1. Have public relations response ready in case of violations, as part of crisis response plan. –Public Relations and Risk Management.

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6. Source of Risk: Government Activities and Services: Risks arising from college dependence on government services and activities. Ranking on the Source of Risk Scale of 1 to 3 at 2 = Moderate

Identified Risks/Examples of Risks: 1. Higher Education in the state is restructured affecting NWACC2. NWACC becomes a part of a college system3. Another similar community college (s) competes locally with NWACC4. New or major changes in higher education or other regulations5. City/county regulations unfavorable to the college6. Utility disruptions or higher charges7. State or county tax revenue restructuring8. Unfriendly or hostile local or county government9. Changes in college governing board membership or function.10. Zoning changes, transportation plans or other city plans unfavorable to the college11. Unacceptable business or industry located adjacent to or near college facilities 12. New federal regulation affecting student learning, student privacy, student aid. 13.

A. Impact of Risk of Loss/Expenses on Financial Resources

Disruption of or lower local and state revenue is possible. Student revenue could lower due to competing college, unfavorable location, and higher tuition charges. Bentonville electricity charges are a major expense to the college. There could be large legal and expenses to represent the college in a public hearing or legal matter. Local millage revenue would be affected by creation of TIF districts. Changes in student aid could affect college revenue.

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Frequency/Severity Estimate: Freq-ModerateSeverity-High

Comments, Status and Recommendations: Currently, most of these issues are stable, except TIF District, which is fluid and problematic and Worth lawsuit, which could severely impact the college financially. The college has a state lobbyist and is a member of AATYC.RECOMMENDATIONS AND RESPONSIBLE DEPARTMENT:

1. Continue policy of a carry over of funds from year to year in a contingency fund.-Business Services 2. Work with utilities to forecast energy costs for budgeting purposes.-Maintenance3. Attend Bentonville and Benton county government meetings so we are informed.-Senior Management4. Continue to maintain good relationship with local and state officials.-President’s office 5. Keep informed of national education regulations and changes.-Senior Management.

B. Impact of Risk of Loss on College Service Delivery

More regulations college must obey to be in compliance. May have to change curriculum to be compliance under different state regulations or educational system. Due to changes in Board, there may not be an understanding of the mission of the college. Low state funds per FTE means either reduced services, higher efficiencies, more local funds needed or all three. Utility disruptions affect learning.

Frequency/Severity EstimateFreq.-ModerateSeverity-High

Comments, Status and Recommendations: College has not experienced many of these risks yet, but recommendations are needed. RECOMMENDATIONS AND RESPONSIBLE DEPARTMENTS:

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1. Include response to these risks in the college crisis recovery plan.—Risk Management 2. Keep informed and train staff/faculty/administrators in all appropriate federal and state regulations.—Risk Management and Professional Development. 3. Keep the Board informed on the mission of the college and expose them to students.—President’s office4. Find alternatives to state funds for operating the college- interest from an endowment.—College Foundation 5. Consider an alternative electricity source for the college in case of emergency.--Maintenance

C. Impact of Risk of Loss on Public Perception of the College

If they happen, the public probably may not be aware of these events and how they affect the college.

Frequency/ Severity Estimates: Freq.-ModerateSeverity-High

Comments, Status and Recommendations:RECOMMENDATIONS AND RESPONSIBLE DEPARTMENT:

1. Keep the college name in the community as much as possible, attend commission and committee meetings.—President’s office2. Have college representatives speak to local groups telling the story.—President and Senior College Officials, Public Relations3. Publicize the college as much as possible.—Public Relations/Marketing

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