By Kara D. Freeman
Over the last decade, enterprise risk management has become an increasingly important priority for business officers in higher education. From physical and financial threats to reputational risks and rising leadership turnover, assessing and managing risk on campus has become a continuous and multifaceted effort.
In the last five years, this job has become more important than ever. Between uncertainty in policy and revenue streams, the COVID-19 pandemic, inflationary pressures, and other economic headwinds, the risks facing our colleges and universities are accumulating.
To take a closer look at the challenges that business officers navigate, the National Association of College and University Business Officers (NACUBO) surveyed more than 600 members on their top concerns this year. We analyzed their responses and compiled the Top 5 Higher Education Business Issues of 2025.1 The list can serve as a roadmap for enterprise risk managers as they evaluate current risks and equip leaders with strategies on how they can strengthen institutional resilience.
While we have no shortage of challenges, it is also essential to acknowledge the opportunities. We are seeing our members strategically shift, where possible, to meet this moment of uncertainty. Chief business officers are working collaboratively across their campuses, and with one another, to develop innovative solutions that balance cost efficiency with strategic investment.
Here are the top five business issues, along with strategies for addressing them:
Managing Unreliable Funding Sources: With the many changes in federal policies since January and the confusion about the Department of Education’s future, it is no surprise this was the most significant issue our members cited. Amid the uncertainty, we are seeing members review their strategic plans, examine the cost of instruction, cut back on expenses