Private Higher Education Institutions in the Digital and Pandemic Era
The Strategic Roles of Integrated Enterprise Risk Management
Enterprise risk management (ERM) is created to identify risks and helps organizations to achieve their targets successfully with less obstacles. ERM is to assist senior management be more aware of the increasingly wide spectrum of threats affecting them and thus more proactive, taking action to avoid what they can but also prepare for worse case scenarios to lessen the damage of events that are out of their control. ERM as an important part of a business performance measurement systems, in managing risks and uncertainties, for the successful implementation of strategic initiatives of an organization. ERM acts as an internal control mechanism with safeguard which provides rule and regulation, policies and guidelines. The main risk management standard that has been developed is the ISO31000 which provides a statement of risk management principles, as well as a description of the risk management framework and process. One of the standards which involve technology in risk management is ISO27000. It provides the overview of information security management systems (ISMS). While the environment of constant change and disruption creates opportunities for institutions to differentiate themselves in a crowded market, it also creates a growing array of risks that can quickly derail their strategy. Further, institutions should consider developing an “integrated and enterprise wide” approach to risk management, as opposed to siloed plans that exist within specific divisions or units to deal with risks specific to their overall institutional function or mission. This paper offers the conceptual integrated ERM (IERM) business model, in the form of Business Model Canvas (BMC), for private higher education institutions’ (PHEI) ability to generate adequate revenue and, in some cases, to even exist. Business model risks challenge an institution’s ability to remain relevance in an environment where new approaches to education delivery, revenue generation, and enrollment are evolving rapidly. PHEI that do not plan for these factors through innovation, enhancing productivity, and leveraging and protecting their strategic information and digital asset may find themselves outpaced by more agile competitors. Especially, during this era of globalization, digitalization and pandemic that have constantly change the livelihood and economic of nations, institutions, businesses, and people.