Changing Higher Ed

Top Risks in Higher Education and Why Leaders Must Have ERM Programs

Feb 18, 2025
Justin Kollinger, a Senior Risk Management Consultant at United Educators, shares his expertise in managing strategic risks faced by higher education institutions. He discusses the rising challenge of social inflation, which has led to increased insurance costs and litigation pressures. Kollinger highlights the top risks facing colleges, including data security and student mental health, while revealing the surprising absence of climate change risks on the list. He emphasizes the critical need for enterprise risk management programs to strengthen institutional resilience and governance.
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INSIGHT

Social Inflation in Higher Ed

  • "Social inflation" describes increasing insurance costs beyond regular inflation.
  • This is driven by litigation financing, plaintiff recruitment, and rising defense costs.
INSIGHT

Trust and Liability

  • Declining public trust in higher education institutions leads to measurable financial outcomes like increased liability.
  • Lawsuits are a direct reflection of this declining trust.
ANECDOTE

Lack of Risk Management Programs

  • Drumm McNaughton notes only about 5% of institutions have formalized risk management programs.
  • Institutions must include risk management in strategic planning.
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