By Ross A. Mugler
The risks facing higher education today are impossible to ignore. Whether from political intrusion, financial instability, shrinking enrollments, or increasingly complex digital threats, colleges and universities are operating amid great pressure. But the danger that most often determines whether an institution will weather storms or succumb to them is a systemic one that often flies under the radar—the risk of governance failure.
Governance failures typically do not make the news until there is a crisis. Crises often stem from weak governance systems that not only add risk but also amplify all risks. Ineffectual boards can turn otherwise manageable challenges into existential crises that threaten an institution’s very foundation. Effective boards, on the other hand, anticipate, prepare for, and navigate challenges and opportunities with strategic focus and good judgment.
Governance risk often doesn’t announce itself, however. Instead, it reveals itself through several frequently overlooked indicators. Trustees unaware or uncertain of their fiduciary duties, boards lacking key expertise, or strained relationships with presidents due to mistrust and ineffective communication are signals. What starts as a small crack in the governance dam can widen quickly under pressure.
Sometimes problems manifest as micromanagement that undermines leadership. Other times, they manifest as paralysis and an unwillingness to act even as risks mount. Increasingly, governance risk shows up by succumbing to undue interference, when, for example, ideological or donor influence is allowed to distort the pursuit of institutional mission and priorities. When governance weakens, every other risk—from financial to reputational—intensifies.
For boards and presidents seeking to better understand fiduciary responsibilities, Association of Governing Boards of Universities