University Office of Enterprise Risk Management (ERM)
The University Office of Enterprise Risk Management (ERM) supports the achievement of the University's objectives by engaging University and Campus leadership, faculty, and staff to promote a progressive risk culture and balanced approach that addresses the spectrum of its risks and manages the combined impact of those risks as an interrelated risk portfolio.
ERM is separate and distinct from the University Office of Risk Management who acts as the insurance agent of the University.
ERM is a process to identify, evaluate, and manage the significant risks that face the University of Illinois.
The people closest to a risk are best equipped to manage the risk. At the University of Illinois, ERM acts in a support role, providing assistance to the risk owners or experts who develop the best mitigation strategy.
ERM staff facilitates risk awareness among administration, faculty and staff, and then stimulates development and implementation of appropriate risk mitigation strategies.
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.
Comparative Risk Responsibilities
The table below explains the difference between ERM, University Audits, University Office of Risk Management, University Compliance & Ethics, and Campus Administration.
|Risk Responsibilities at the University of Illinois
Support ACHIEVEMENT OF UNIVERSITY OBJECTIVES by reducing the likelihood and impact of material negative events, while facilitating the acceptance of manageable risks
||All University Units / Departments
||Enterprise Risk Management
||University Office of Risk Management
||University Ethics and Compliance
||Own and manage risks with responsibility for loss control and prevention
||Promote a risk-intelligent culture by facilitating an integrated and coordinated risk identification, measurement, and management process
||Protect the University's human, physical, and financial assets by coordinating a program of commerical and self insurance
||Promote a culture of ethical conduct and a commitment to compliance with federal, state and local law and regulation
||Provide independent assurance on effectiveness of governance, risk management, and internal controls
||Various - ultimately to Chancellor or applicable VP
||OBFS to VP-CFO
||Treasury to VP-CFO
||Reports directly to the President and to the Board of Trustees through the Government, Personnel and Ethics Committee
||Reports directly to the President and the Board of Trustees through the Audit, Budget, Finance and Facilities Committee, and indirectly to the VP-CFO
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: September 14, 2016