Strategy, Risk Management & Governance PROUDLY SPONSORED BY

Transcription

1 Strategy, Risk Management & Governance PROUDLY SPONSORED BY 1

2 WORKSHOP OBJECTIVES Demonstrating sound risk management and corporate governance practices in a NEAS organisation 2

3 WHAT IS RISK? The possibility of loss, injury or harm. Is there risk in English language teaching? 3

4 FOCUS QUESTION Describe an experience you have had in the workplace where you felt your organisation was placed at risk. How did you approach the situation? Notes Thoughtful consideration and careful planning can reduce the impact. 4

5 RISK MANAGMENT Identifying, assessing and prioritising risk and then applying a coordinated approach to minimise, monitor and control the probability of unfortunate events. The goal of risk management is to assure that uncertainty about the future does not prevent us from achieving our (business) goals. (ISO 31000) Notes By exploring potential risks and pre-determining how we would respond to them in advance, we can put into place training, policies and procedures that will help our staff deal with issues should they ever come up. Critical incidents may not be able to be prevented but their impact could be reduced through thoughtful consideration and planning. Risk management is about understanding the types of risks we could possibly face, what the possible outcomes are and how to manage the outcomes or results of incidents. 5

6 RISK MANAGMENT Having an agreed structure in place of policies and procedures which identify, monitor and report on risk. Notes Good governance is the responsibility of everyone in the organisation. Leaders need to communicate how governance is being achieved and modelling responsible behaviours. Governance refers to the behaviours around organisational cultures and crisis management as well as strategic vision. 6

7 GOOD GOVERNANCE 7

8 GOOD GOVERNANCE Having a system of rules, practices and processes by which a company is managed. It essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community. 8

9 RISK MANAGEMENT and GOOD GOVERNANCE Notes Risk management and good governance go hand in hand. 9

10 WHAT IS QUALITY ASSURANCE? quality assurance is all those planned and systematic actions necessary to provide adequate confidence that an entity will fulfil requirements for quality ISO (International Organization for Standardization) 10

11 QUALITY IS Meeting the needs of an organisation s stakeholders. Students (customers) and their families Employees including teachers & managers Owners including shareholders Suppliers eg agents, homestay services The regulators (government) Pathway providers 11

12 WHAT IS QUALITY ASSURANCE (QA)? Culture Behaviours Policies Notes Quality assurance is more than just policies and checklists. It s also about behaviours and cultures. Policies are a means of checking or providing a road map to ensure that quality and compliance goals are being met. Behaviours demonstrate and quality is being emulated by staff and a culture of continuous improvement promotes and rewards doing it better. 12

13 QUALITY ASSURANCE AREAS Resources & Facilities Administration Management & Training Promotion & Student Recruitment Student Experience Teaching, Learning & Assessment Agent & Partner Management Welfare of Students Under 18 Yrs Governance & Risk Management Notes NEAS is a QA specialist and provides a framework for organisations to do just that follow policies, behaviours and culture to ensure that they meet their quality goals and are fit for purpose. Currently 6 frameworks with the 7 th Governance and Risk Management being rolled out later this year. Our frameworks are interwoven. Poor practice in one area can have an impact on another. QA is a holistic process, looking at all parts of the system and ensuring that each part is of a high standard. 13

14 Legislative and regulatory compliance Registration / company details / licences TAS Fit and Proper Person declarations Constitution Minutes of governing body meetings Culture Assumptions Values Beliefs Principles Corporate DNA Planning Vision/mission statement Business plan Strategic plan Marketing plan Structure Org chart / governance structure Financial Accounting software Projected income and expenditure Budgetary process to forecast profits Liquidity rations; financial structure ratios Accountant s statement / audited financial statements Risk Public liability and other insurance Risk appetite Strategic risk Operational risk Policies Compliance Risk management Financial control Periodic review of governance Cyclical review Partnership agreements Agents Receiving institutions Student services providers 14

15 WHAT IS RISK TO YOU? An economic concept A governance role Risk A personality characteristic Products and services A management system Kiel, G. (2012) Understanding University Governance, LHMartin Institute, University of Melbourne. Notes Economic - greater risk should be associated with greater potential return, Personality - people differ widely in their willingness to take risks., risk taking is situational; our willingness to accept risk will depend on the situation. Management - recognised management science and has been formalised by international and national codes of practice, standards, regulations and legislation. Risk management forms part of management s core responsibilities and is an integral part of the internal processes of any organisation. Products Insurance, Derivatives, Outsourcing and advice, Risk Information Technologies Governance structures in place to manage and mitigate risk. 15

16 Organisational Culture RISK MANAGEMENT Set the risk appetite Structure for risk management Embed risk into governance processes Crisis management Supervise, monitor and report risk Kiel, G. (2012) Understanding University Governance, LHMartin Institute, University of Melbourne. Notes This first model is a model used to approach and manage risk. The benefits of this model allow us to have fewer surprises by having proactive identification and management of key risks. This provides less uncertainty around the achievement of strategic objectives, helps with organisational sustainability and increases stakeholder confidence. This model allows us to have a reduced loss and increased reward. Risk management helps to reduce the likelihood of and loss from negative events. It also helps the organisation to take advantage of opportunities that may otherwise go unseen. A model like this one allows for better decision making. More effective decisions are made when a structured consideration of risk is built into existing activities and processes. An example of this, is management meetings that contain a risk assessment of the current risks at the time. Models like this lead to improved governance. Sound risk management, with defined reporting and communication protocols, can help an organisation fulfil expectations of key stakeholders and comply with regulatory requirements. This model highlights organisational culture and crisis management as two ends of the spectrum and both needing equal consideration. By setting the risk appetite in an organisation, building structure for risk management and embedding this into the organisation s governance processes, we can supervise, monitor and report risk. 16

17 INTEGRITY MODEL Appropriateness Feasibility Comprehensibility Sustainability Accountability Chandler, R (2014) Business and Corporate Integrity: Sustaining Organizational Compliance, Ethics, and Trust. ABC-CLIO Florida Notes The integrity model is a model that managers can use to approach strategic problem solving to a specific risk or governance issue to determine possible outcomes and mitigate against any major loss or negative result. This model asks the manager to explore outcomes of a decision around four parameters to ensure that a proposed activity is less risky and well governed. The model explores comprehensibility of a proposed action. Managers need to clearly understand each strategic alternative proposed. The model requires an assessment of the appropriateness of a strategy. Comprehensibility need to clearly understand each strategic alternative proposed. Appropriateness should assess the fit of each strategic alternative with the company s constitution or other statutory obligations and with its mission, vision and values. Sustainability should assess the economic, environmental and social sustainability of each strategic alternative. Feasibility should assess their organisation s ability to successfully implement each strategic alternative under consideration. Accountability should be satisfied that management can establish and provide clear accountability mechanisms, both quantitative and qualitative, for each strategic alternative. 17

18 GOVERNANCE FRAMEWORK Audit / risk assessment Reporting Policy Setting Monitor, review, evaluation Implementation Austin, I & Jones, G (2015) Governance of Higher Education: Global Perspectives, Theories, and Practices. Routledge Notes The governance framework, allows managers and business owners to ensure they have a cycle of review to ensure quality assurance in the area of risk and governance. This model is continuous and ongoing and asks the manager to undertake an initial audit and risk assessment to determine what strengths and weakness they currently have in their organisation. Policies are then created to ensure that the risk management and good governance approach is documented for the future. These policies need to be then implemented, with attention paid to monitoring, reviewing and evaluating the policies. This should then be reported in an ongoing manner to the governing body, whether a board, owner or management committee. This then restarts the cycle of good governance. 18

19 Scenarios Scenario 1 A teacher has presented a medical certificate for sick leave that you believe to be fake. This teacher has a history of taking the maximum amount of allowable sick leave each year. He also takes combinations of annual leave and sick leave during professional development activities provided by the centre, so has missed a lot of professional development. There is a history of friction between the management of the centre, the human resource department and this staff member. However, the students love this teacher and their grades are some of the highest in the centre. What do you do in the short term, midterm and long term? 19

20 Scenarios Scenario 2 An adult international student from China presents behaviour in the classroom that is disturbing other students and the teacher. This student has been caught drawing obscene pictures on the whiteboard of the classroom. You meet with the student and find out they have left their homestay and are staying at the Salvation Army. You suspect they may have mental health issues. You offer support to the student but they refuse it. You make an appointment with the student to check in with them in a week s time. That night you get a call from Security saying they have caught the student stealing milk and bread from the staff room. What do you do in the short term, midterm and long term? 20

21 Scenarios Scenario 3 An adult international student from Vietnam has a heart attack during a class offsite. The teacher calls reception but no one answers. They then call 000 and an ambulance comes to attend to the student. They take the student to hospital and the student has a further heart attack while in hospital and dies. The teacher and the other students are distraught. What do you do in the short term, midterm and long term? 21

22 Scenarios Scenario 4 Your CEO / Board / Manager asks you to migrate several of your Centre s courses online. You investigate the process and design a timeline, milestones and project deliverables. The process will achieve efficiencies in staffing and allow a greater margin on delivery of the courses. However, several teaching positions and administrative positions will be made redundant in the process. What do you do in the short term, midterm and long term? 22

23 Scenarios Scenario 5 45 students from Indonesia are visiting on a short-term course at your centre. On the weekend you are watching the early morning television and you see a shocking breaking news story about a an earthquake and resultant tsunami in the same region as the majority of the students. What do you do in the short term, midterm and long term? 23

24 ACTION CHECKLIST Issue or aspect for my attention What action will I take to improve the performance of my team or organisation? Homework 24

25 25

26 NEAS QUALITY ASSURANCE 26

27 WORKSHOP FEEDBACK We value your feedback. Please take a moment to fill out this short survey on this new workshop. Many thanks! 27

28 Save the Date! 2018 NEAS Management Conference 9-11 May 2018 Beyond the Digital Revolution in Education and Training 1658 Thank you for your attention and contribution during the workshop. I would like to leave you with an invitation to next year s conference, which will be even bigger and better than this year s. Please save the date for the 2018 NEAS Management Conference, held May next year. The theme will be Beyond the Digital Revolution in Education and Training and we are particularly interested in highlighting how English Language Teaching is changing, being blended and conducted virtually by our providers. That brings me to the end of my presentation. There is a little time for questions, and after the questions I would like to invite you to please join me and the NEAS Board, Advisory Council and Staff for our Pre-Dinner drinks outside. The Dolton Staff have to reset the room for dinner, so we ask you to help them out by exiting the room quickly. Drinks will be 5-6pm followed by our Conference Gala dinner at 6.30pm. Thank you everyone, and please enjoy the rest of the conference! [Questions]