By Dr. Norean R. Sharpe
In 2019, St. John's University and Deloitte began organizing a series of symposia on Risk Management in Higher Education for deans, provosts, and chief risk officers to discuss the risks facing universities, such as enrollment management, resource constraints, branding challenges, faculty recruitment, student retention, and the rise in online learning. As these symposia have evolved, the scope of our discussion has naturally expanded to include emerging risks, such as political activism, athletic funding, public confidence, and generative artificial intelligence (AI).
The 13th Symposium on Risk Management in Higher Education, co-hosted by Deloitte and St. John’s University, was held on April 4, 2025. This symposium once again gathered a diverse set of leaders–CROs, CCOs, trustees, deans, provosts, and presidents–to tackle the pressing risk-related challenges facing higher education today. The focus of this year’s symposium was on prominent risk issues, such as evaluating the cost and effectiveness of institutional insurance and mitigating academic leadership risk. Here, I share some of the insights from the panel of academic deans discussing Deans as Risk Owners: How Can Deans Prepare for Our Evolving Educational Landscape.
Overview
The role of deans has expanded over the past few decades beyond traditional administrative duties to encompass a broader spectrum of responsibilities. Deans are now asked by executive leadership to oversee critical functions–such as student enrollment and retention, faculty recruitment, curriculum creation, global programming, and fiscal management–all while working with constrained resources. This level of responsibility requires a proactive approach to identifying, assessing, and mitigating risks that could impact the institution’s success.
Faculty-related risks, for instance, involve issues such as dissatisfaction, recruitment, performance evaluation, and legal challenges. Meanwhile, the rise of online education introduces new dynamics in managing educational quality and student engagement across different modalities. The need for lifelong learning and flexible, industry-informed programs underscores the importance of designing innovative educational programs that cater to diverse student needs. Regulatory changes and financial contractions add layers of complexity, requiring strategic navigation to maintain institutional viability.
"This level of responsibility requires a proactive approach to identifying, assessing, and mitigating risks that could impact the institution’s success."
Faculty Recruitment, Retention, and Rewards
Faculty-related risks are numerous and include recruitment, union/ salary negotiations, student dissatisfaction and legal liabilities, political activism, and teaching/research performance. Addressing these risks requires a delicate balance and strategic foresight to ensure faculty engagement, development satisfaction, and effectiveness.
The processes of recruitment and retention–or employment management–are fraught with risks and complexities. As universities compete with one another for strong scholars and teachers, as well as for faculty trained in AI, deans must balance the pace of the search with the size of salary and summer research stipends. Additionally, promotion and tenure decisions must be handled through appropriate committee processes to avoid potential legal challenges. Ensuring fairness and transparency in these processes is paramount to maintaining a positive and productive faculty environment.
The rise in online and hybrid learning has created the risk of course scheduling, faculty development, quality control, and funding. Being able to find the resources to provide innovative programming in three modes–in-person, hybrid, and online (both synchronous and asynchronous)–and to train faculty in new technologies creates an additional financial burden on departments and programs. This burden requires the deans to balance student needs with faculty preferences, facility availability, and technology performance. While online education has provided flexibility for students, it has presented new risks and challenges for educators.
"Effective financial management is essential for sustaining operations and supporting institutional goals."
Innovative Program Design
Programs must be designed with the student in mind, while being fiscally responsible and avoiding duplication of in-person and online offerings unless catering to distinct student groups, such as adult learners. Find alternative revenue sources to support academic programming, such as donor-driven or corporate-driven co-curricular and curricular programs.
Academic offerings must be innovative, current, and high-quality. Hire or train faculty in AI and support the development of modules, concentrations, certificates, and degree programs in AI.
Lifelong learning and just-in-time education are evolving concepts that require institutions to offer flexible educational experiences. Programs need to be industry-informed and based on measured market demand. Institutions must adapt to the changing needs of students by providing opportunities for continuous learning and skill development.
Regulatory and Financial Challenges
Ongoing changes in regulations–such as CPA requirements, accreditation strategies, faculty/staff union restrictions, and federal funding–pose additional risks. Institutions must navigate these changes while maintaining compliance with professional organizations and financial viability. Staying informed about regulatory developments and adapting policies to respond to changes is crucial for institutional success.
Current declines in federal funding necessitate strategies to manage evolving financial constraints. Institutions must focus on reducing duplicative efforts and optimizing resource allocation. Effective financial management is essential for sustaining operations and supporting institutional goals.
Unionized faculty present unique risks and opportunities. While transition costs are high, unionization can lead to positive outcomes in salaries and health benefits, reducing the burden on deans. Institutions must navigate the complexities of unionization while leveraging its potential benefits for faculty and students alike.
Professional accreditation requirements have evolved with the growth of online learning. The importance of data science, technology, AI, and analytics in nearly every discipline has increased. In addition, the emphasis on “societal impact” and “environmental sustainability” has also gained momentum in accreditation reviews. Deans must collaborate with faculty to navigate this new normal.
KEY RECOMMENDATIONS
Despite budget cuts, continue investing in people and programs.
When trimming the budget, do it in ways that protect students, faculty, and staff
Find alternative sources of revenue
Be creative in filling leadership and faculty roles
Motivate faculty to be innovative and reward faculty appropriately
Facilitate collaboration across structural boundaries
Prepare for transitions
Support the development and promotion of staff and faculty
Fund education workshops and conferences for staff and faculty
Provide guidance, yet give autonomy to the leadership team
Launch a leadership-mentoring program
Embrace Change
Consider a broad array of risks in your strategic plan
Use Enterprise Risk Management (ERM) techniques to mitigate risks and enhance decision-making
Educate faculty and staff to be adaptable and flexible
Be proactive, not reactive