Code: 2780
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
Outline

Importance of risk management

COSO framework

Framework application

Conclusion
Importance of risk management


Risk comes from not knowing

Successful organizations have
what you're doing. (Warren
learned that the higher the risk,
Buffett)
the more necessary it is to
You can measure opportunity
engage everyone's commitment
with the same yardstick that
and intelligence. (Margaret
measures the risk involved.
Wheatley)
They go together. (Earl
Nightingale)
Importance of risk management
Higher ed is not immune to risk, as shown
by the cases summarized on the following
slides.
Importance of risk management

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.
Importance of risk management

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.uk
1 September 2011
Importance of risk management

California State U San Bernardino
[KHP professor] Kinzey is accused of running a
methamphetamine-selling operation out of his
Highland home.
The Press Enterprise
21 August 2012
Importance of risk management

Generic risks
associated with
academic advising

FERPA violations

Forged signatures

Sexual harassment
COSO framework

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
COSO framework
Internal environment
Objective setting
Monitoring
Enterprise Risk
Information &
communication
Management—
Event identification
Integrated Framework
Control activities
Risk assessment
Risk response
Source: Accounting Information Systems:
Basic Concepts and Current Issues (3rd
edition) by R. L. Hurt. McGraw-Hill / Irwin,
2013.
Framework application

Internal environment

Readings, seminars,
“brown bag” discussions

Lack of knowledge
regarding conditions for
academic probation
Objective setting
Minimize the number of
students on academic
probation for multiple
terms
Event identification

Risk assessment
High
Framework application

Risk response




Reduce
Avoid
ERM plan posted on
web site
Control activities


Annual advisor
workshops
Advising videos
Information &
communication

Monitoring


Annual survey
Bi-annual staff retreat
Framework application

Participants


Advising administration
Contribute knowledge of
frameworks
Communicates project
importance

Advisors
Auditors / risk
management personnel

Legal staff
Connect the dots and bring
the advising expertise

Students
Alternative perspectives
Adapted from
http://rlhurtconsulting.blogspot.com/
Framework application

Tasks to complete


Form the team.
Risk response & control
activities
Internal environment

Identify and describe
inherent risks.

Determine the likelihood
and significance of those
risks.
Risk assessment
Communicate the plan.
Information &
communication
Objective setting & event
identification

Develop a sound
response to the risks.

Monitor the plan.
Monitoring
Conclusion

Additional questions /
comments?

Author contact info
Dr. Bob Hurt
robert.hurt@gmail.com
(909) 869-2372