6.1.10 Risk Management Policy

POLICY: Risk Management Policy
CODE:  6.1.10

Date initially approved: January 23, 2013 
Revised: January 22, 2014

Risk Management Policy 
1. Purpose 
The Campion Board of Regents (Board) is responsible for overseeing and directing all matters respecting the management, administration and control of the College’s property, revenues and financial affairs in a manner consistent with the mission of the College. This includes managing risks that could affect the on-going operations of Campion College.

An integral component of discharging this responsibility is the development of a risk management policy. The primary purposes of this policy are to document the key broad-based risks faced by the College and outline the responsibilities of the Board, the Finance and Audit Committee, and College management in managing these risks.

2. Definitions 
Risk is the chance of an event or trend, either positive or negative, that could have a significant impact on Campion College’s operations and or the attainment of its strategic goals.

Risk management is the coordinated activities to direct and control Campion College with regard to risk (e.g., identifying, assessing, and prioritizing risks; assigning resources to minimize, monitor, and control the probability and/or impact of the risks or to maximize the realization of opportunities).

Broad-based risks are risk categories whose basis is wide ranging and comprehensive. 
Risk register is the document which identifies Campion College’s key risks and mitigation strategies in all areas including strategic, board governance, financial, operational and compliance.

3. Approach 
Campion College faces risks as it strives to achieve its mission of providing a liberal arts education dedicated to the development of the whole person for service within society. While the Board of Regents has overall responsibility for managing all foreseeable risks that could affect achievement of the College’s mission, risk management is a shared responsibility at all levels of the College.

To this end, the Board of Regents will oversee the identification, measurement, monitoring and management of its risks. Upon development of the essential risk management plan, the Board of Regents will ensure that the risk management plan is effective through annual reviews.

4. Broad-Based Risks 
The Board of Regents has identified the following broad-based risk categories:

i) Strategic Risks – This category includes risks that put the College in the position of failing to be mission focused, work within the framework of its values, and meet its stated goals. 
ii) Board Governance – This category includes risks that impair the Board of Regents in the discharge of its duties with respect to providing strategic leadership to the organization. 
iii) Financial Risks – This category includes risks that impair the College’s on-going ability to meet or achieve its mission at a reasonable cost. 
iv) Operational Risks – This category includes risks that impair the College’s ability to meet objectives due to failed internal processes, human performance, technology or external events. 
v) Compliance Risks – This category includes risks associated with not fully complying with law, legislation, regulations and/or board policy. 

The Board of Regents believes that these broad-based risks are integrated with each other and with the processes of Campion College. Furthermore, it believes the strategies to manage risk typically include transferring the risk to another party, avoiding the risk, reducing the negative effect or probability of the risk, or even accepting some or all of the potential or actual consequences of a particular risk.

5. Responsibilities of the Board of Regents 
The key responsibilities of the Board of Regents follow:
1. Develop and regularly review the risk management policy. 
2. Contribute to risk identification and analysis particularly in the broad-based categories of strategic risks, board governance risks, financial risks and compliance risks. 
3. Maintain a risk registry for the broad-based risk categories.
4. Ensure that policies are developed that support the College’s strategic plan and on-going operations. 
5. Oversee the quality of the ERM program implementation, execution, and competencies within the College. 

6. Responsibilities of the Finance/Audit Committee 
The key responsibilities of the Finance/Audit Committee follow: 
1. Regularly (minimum semi-annually review the board and management risk registries and formally report to the board.
2. Educate board members of enterprise risk management best practices. 

7. Responsibilities of Management 
The key responsibilities of the College’s management follow: 
1. Regularly (minimum semi-annually) provide its risk management registry to the Finance/Audit Committee.
2. Identify and analyze risks. 
3. Communicate the benefits of risk management to all stakeholders. 
4. Ensure that necessary resources are allocated to risk management. 
5. Assign accountabilities and responsibilities at appropriate levels within the College. 
6. Ensure legal and regulatory compliance.