The Way Forward: Higher Education in 2026

Adopting risk management practices is the best way to build a stronger, more resilient institution of higher learning.

Schools and other institutions of higher learning are facing serious challenges in 2026. And the risks are compounded by the so-called “demographic cliff,” a falling number of high school graduates who are the candidates for attending colleges and universities. There is also a 15% drop in international student enrollment. Even worse, many Americans don’t believe a degree is necessary to find a good job.

With college and university revenue expected to fall due to government budget cuts and rising costs due to inflation, it has become increasingly challenging for educational institutions to sustain operations. Of course, this means layoffs for institutional employees, leading to burnout among remaining staff and increasing mental health issues among instructors and students alike.

At the same time, there is increasing concern about physical attacks on campuses as well as cyber attacks on the institutions. In fact, ransomware attacks on educational institutions have jumped by nearly 25% year over year, driven in large part by the rise in artificial intelligence (AI) use.

With so many challenges coming from all directions, schools and other institutions of higher learning will have to adopt risk management practices to address each challenge and determine the best course forward.

Risk management experts suggest creating a holistic risk management strategy that protects both employees and students, and the bottom line. Institutions that follow these best practices will be more likely to come out ahead:

1. Manage the Risks Actively. Ignoring the risk does more harm than good. Organizations that adopt an enterprise risk management (ERM) strategy will be better able to identify, assess, and manage risks. ERM ensures that everyone throughout the institution, from the board and executive leadership to academic and administrative staff, is prepared to respond to a disaster.

2. Personalize Employee Benefits. With so many employees to consider, a one-size-fits-all benefits package will never meet everyone’s needs. Institutions that adopt personalized benefits, wellness, and retirement strategies will see stronger engagement across the board and better recruitment and retention.

3. Work with Your Broker. Your broker or advisor is an expert in both risk management and the higher education sector. But they can be helpful only if they have all the information they need. Work with the broker to approach risk strategically. Communicate regularly with the broker to help identify and mitigate issues.