Enterprise risk management

The culture, capabilities, and practices, integrated with strategy-setting and its performance, that organizations rely on to manage risk in creating, pre­serving, and realizing value; a process to strategically manage risks, where leadership prioritizes responses to these risks with a focus on creating, preserving, and realizing value in line with its mission for ensuring that tactical responses to risk are implemented. Source: Enterprise Risk Management:  Integrating Strategy and Performance (COSO, 2017)).

Functional risks 

Risks that affect ongoing management or administrative processes, which are often confined to one or a limited number of functions at the University.

Impact

The extent to which an event or condition would impact the University if it materializes with no response or mitigating controls.

Institutional risks

Strategic and sector-level risks that could have a major influence on UM’s mission or vision, one of its core functions or strategic themes, or high-value cross-functional processes.

Likelihood

The probability that an event or condition will occur before applying a response or mitigating controls.

Risk appetite

The amount of risk in which the university is willing to accept in the pursuit of its objectives or creating value.

Risk

The effect of uncertainty on an organization's ability to meet its objectives.

Risk inventory

A listing of identified risks that could impact the University’s performance.

Risk owner

Individual responsible for ensuring that tactical responses to risks are implemented.

Risk response

 Any conscious action or inaction to reduce or eliminate likelihood and/or impact (avoidance, prevention, reduction, separation, duplication, or transfer).