Comprehensive Risk Management Of Colleges

With the deeper reform of higher education in China, Chinese colleges are turning from government-controlled to corporate entities which make their own decisions and shoulder the civil liability. Marketization and popularization of higher education bring opportunities as well as risks to colleges. Various levels colleges compete on recruit students, teachers, finances, publicity and so on, for the sake of survival and superiority, which leads to expansion, and resultant financial gap, colleges often depend on bank for their expansion due to their poor self-finance. The debts of colleges increase, some are even over-burdened, so finance risk of colleges looms. Some colleges neglect management in the process of running school, resulting educational corruption, embezzlement and misappropriation, etc. Moreover, colleges also have risk in teaching quality, human resources and so on. Thus it can be seen that under new circumstances colleges face huge risks with the rapid development. Because the importance of colleges in national economy and our daily life, timely recognize risk and control could affected to healthy development of colleges and realization of the objective of higher education in China, to enhancing innovation and the overall strength of country. Therefore, colleges should be established effective risk management system to provide guarantee for the realization of their strategic objectives.Different from focusing on certain risks in the past, modern risk management takes all kinds of risks entities face into consideration. For colleges, it is not enough so far to identity the risk from one isolated business or one section, the risks must be understood comprehensively. Therefore, colleges should be established comprehensive risk management system.The thesis uses for reference Enterprise Risk Management—Integrated Framework of COSO and the practice of college risk management in the west. From the particularity and complexity of colleges organization, it establishes fundamental colleges risk management framework in China, then identifies the risk which Chinese colleges face at present, and initially argues the evaluation and management of education quality risk, then focuses on capital risk.There are two innovations in this thesis. First, it applies the enterprise risk management to the colleges, and modifies accordant with the particularity and complexity of colleges organization, then initially establishes fundamental frameworkof comprehensive risk management of colleges in China. Second, it adopted the idea of comprehensive risk to research the risk management of colleges. The article gives adequate consideration to colleges'other risks and management besides capital risk.