Enterprise Risk Management

About ERM

ERM is a process to understand and manage the significant risks that face the University of Illinois.

The people closest to a risk are best equipped to manage it. At the University of Illinois, ERM acts in support role, providing assistance to the experts to develop the best mitigation strategy.

ERM begins at the top of the University with the Board of Trustees and the President. The two risk committees provide direction, and they are made up of University / campus leadeship and faculty. Risk centers provide oversight of categorized risks.

ERM Org Chart

The University's ERM process is based on the framework developed by the Committee of Sponsoring Organizations (COSO). The COSO framework has been modified to reflect the unique culture of the University of Illinois.

ERM process

ERM Vision

Create a risk-aware culture that educates stakeholders on risk management, allowing the University to identify risks and make plans to avoid material impact on finances and operations while encouraging the acceptance of manageable risks in support of opportunities.

Risk and Opportunities

Risk is any issue that impacts the University's ability to meet its goals and objectives.

Opportunity is a chance to advance the University, possibly requiring that a certain amount of risk be taken.

Benefits of ERM

  • Minimizes surprise and impact on operations and administration.
  • Explicitly considers risk when addressing ongoing business, operational activities and in planning future endeavors.
  • University strategy aligns with University risk appetite.
  • Identifies and manages cross-unit risks.
  • Structures identification of risk mitigation strategies.
  • Enhances risk response decisions.

Last Updated: July 26, 2011