The rise of risk management in the universities: a new way to understand quality in university management

Abstract

This study aims to identify how uncertainty and insecurity in the post-2008 period have reshaped risk management in the university systems. The study scrutinises internal control in the contexts of the English university system and the State University of New York (SUNY) system. It utilises the concept of ‘risk’ by exploring ‘risk society’ theses. The paper argues that uncertainty, anxiety and distrust following the 2008 financial crisis did not reshape the risk management mechanisms in England and the SUNY system. The adaptive reactions of these university systems against the crisis were immediate responses to fiscal shortage, rather than reforming of their internal control mechanisms. This suggests that the uncertain environment may thrust the universities into a reflexive mode; however, it is not necessary to bring about substantial structural changes.

Keywords:

• Higher education risk management
• internal control
• financial crisis
• United Kingdom
• United States of America

Acknowledgements

I owe debts of gratitude to the following interviewees: for the data collection from England, anonymous staff at the HEFCE, Jonathan Hunt at the ICAEW and for the SUNY-related data, SUNY Chancellor Nancy L. Zimpher, SUNY University Controller Jeff McGrath, SUNY Internal Control Coordinator Christian Mullin, President Dr. Satish K. Tripathi in the University at Buffalo, Internal Control Coordinator Pamela Lojacono in the University at Buffalo, President Robert J. Jones in the University at Albany and Former Chairman David L. Landsittel in the COSO. I also would like to express my appreciation to anonymous interviewees.