Recent news about Harvard versus the Trump administration in which the higher education institution is fighting to keep its federal funding and tax exempt (and basically its existence) should be a wake-up call for other higher education institutions. The higher education industry needs to take a more proactive look at the risks that could impact operations and its existence. Identifying as many internal and external risks that could impact your higher education institution can help in developing a plan of action.
What Are Those Risks?
This list is not all inclusive, but provides you with an idea of the risks that could impact your higher educational institution.
- Freezing or withholding of government funding related to research, financial aid, contracts, etc.
- Threatening donors both private and public.
- Limited or no ability to host international students and teachers.
- Indirect threats to the accreditation of the institution or specific programs.
- Loss of tax exemption status.
- Raising tax rates that impact endowment.
- Restricted international travel.
- Restricted access to foreign partnerships and funding.
- Threatened collaborations or partnerships with other higher education institutions.
- Heavy federal compliance and performance audits and monitor.
- Heavy federal investigations for alleged criminal activities or violations.
- Restrictive access to government data or information.
- Blackballed professors, administrators, and even students.
- Slowed review process of funding and contracts
Takeaway
Given the current environment, it is important to know the risks that can impact your higher education institution. When it comes to risks, remember these tips: identify, assess, and address. In addition, key officials at your higher institution should stay alert for potential red flags or warning signs that will need attention. The risks mentioned above can help you identify other risks that could impact your higher educational institution. Understanding these risks will make you better aware of and prepared to handle business, minimize risks, and continue to meet the mission.