Plan for the Sour Notes: Managing Risk in Academic Advising

2012 NACADA National Conference

Dr. Bob Hurt, C.F.E.

Professor of Accounting, Cal Poly Pomona

Faculty Advising commission chair, 2012 - 2014

Code: 2780

Importance of risk management

COSO framework

Framework application

Conclusion

Risk comes from not knowing

what you're doing. (Warren

Buffett)

You can measure opportunity

with the same yardstick that

measures the risk involved.

They go together. (Earl

Nightingale)

Successful organizations have

learned that the higher the risk,

the more necessary it is to

engage everyone's commitment

and intelligence. (Margaret

Wheatley)

Higher ed is not immune to risk, as shown

by the cases summarized on the following

slides.

UNC Chapel Hill

The university has determined that fraudulent and

serious irregularities were found in more than 50

courses from summer 2007 through summer 2009

in the Department of African and Afro-American

Studies. In particular, independent study courses

with little oversight were singled out as problematic,

and forging of faculty signatures has been alleged.

The Herald Sun. 26 August 2012.

Inholland College

The Inholland College was alleged to have

given easy passes to struggling students to

boost its income, while former administrators

were accused of fiddling expenses, The

Telegraaf newspaper reported.

http://www.timeshighereducation.co.uk1 September 2011

California State U San Bernardino

[KHP professor] Kinzey is accused of running a

methamphetamine-selling operation out of his

Highland home.

The Press Enterprise21 August 2012

Generic risks associated with academic advising

FERPA violations

Forged signatures

Sexual harassment

Acronym for the Committee of Sponsoring

Organizations of the Treadway Commission

on Fraudulent Financial Reporting (

www.coso.org)

Developed a well-accepted model for

managing risk called Enterprise Risk

Management: Integrated Framework

Enterprise Risk

Management—

Integrated Framework

Internal environment

Objective setting

Event identification

Risk assessment

Risk response

Control activities

Information & communication

Monitoring

Source: Accounting Information Systems: Basic Concepts and Current Issues (3rd edition) by R. L. Hurt. McGraw-Hill / Irwin, 2013.

Internal environmentReadings, seminars, “brown bag” discussions

Objective settingMinimize the number of students on academic probation for multiple terms

Event identificationLack of knowledge regarding conditions for academic probation

Risk assessmentHigh

Risk response Reduce Avoid

Control activities Annual advisor

workshops Advising videos

Information & communicationERM plan posted on web site

MonitoringAnnual surveyBi-annual staff retreat

Participants Advising administration

Communicates project importance

AdvisorsConnect the dots and bring

the advising expertise Students

Alternative perspectives

Auditors / risk management personnel

Contribute knowledge of frameworks

Legal staff

Adapted fromhttp://rlhurtconsulting.blogspot.com/

Tasks to complete Form the team.

Internal environment Identify and describe

inherent risks.Objective setting & event

identification Determine the likelihood

and significance of those risks.

Risk assessment

Develop a sound response to the risks.

Risk response & control activities

Communicate the plan.Information &

communication Monitor the plan.

Monitoring

Additional questions / comments?

Author contact infoDr. Bob Hurt

[email protected]

(909) 869-2372