HigherEdRisk's Risk Intelligence Roundup
Today is one of those days when there are so many topics to write about that I don't know where to begin. We are also excited to put the finishing touches on our Fall Edition of HigherEdRisk!
So, I will keep this post brief but packed with information you need to know to stay ahead of risk.
Clery Compliance
Remember the Clery Center's article published in our Winter 2025 Edition on the Hazing Legislation that passed in December 2024 - well, get ready to be compliant! Deadlines are quickly approaching. Also read more about HazingInfo.org’s Nationwide College Campus Hazing Database.
Chief Business Officer Survey is Out
The 2025 Inside Higher Ed Chief Business Officer Survey was recently released. Some of the key insights are:
The top five financial risks over the next five years are: (1) Enrollment Declines, (2) Rising Personnel Costs, (3) State and Federal Funding Reductions, (4) Deferred Maintenance, and (5) State and Federal Policy Changes. Responses differ by private vs public but these are the ones that stand out.
Government interference in institutional strategy is viewed as an increasing financial risk by seventy (70) percent of CBOs, up from sixty-three (63) percent in last year's survey.
Fifty-four (54) percent of CBOs are at least moderately concerned about the sustainability of their institution's tuition discount rate, with private nonprofit college and university CBOs especially concerned.
I thought we would see an uptick in this space, but only eleven (11) percent of CBOs report serious internal merger discussions within the last year.
My favorite topic - Deferred maintenance! Close to two-thirds of the institutions represented (63) percent are poised to fund less than twenty-five (25) percent of their identified deferred maintenance needs this fiscal year.
Social Inflation is here to stay!
Remember our article and United Educators' insights on Social Inflation and Third Party Litigation Funding in their Large Loss Report? Recent research analysis suggests that third-party litigation funding could cost commercial insurers as much as $10 billion annually. Read more here.
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Remember, staying ahead of risks in higher education isn't just about thoughtful planning; it's about leveraging risk intelligence to thrive in times of uncertainty.
