Page 33 - Risk Management Bulletin January-June 2023

RMAI BULLETIN JANUARY - JUNE 2023

GOVERNANCE: AN INWARD-LOOKING

CULTURE MISSES RISKS AND

OPPORTUNITIES

E ffective governance is not easy, and neither students and local businesses, if the focus is on the

immediate environment in which the college operates,
is it well understood. Governance, however,
then wider horizon scanning is unlikely to feature in
is fundamental to the viability of any
organisation. It determines the effectiveness
ones that would be obvious to a risk management
of the functions that underpin the very the board's analysis. This misses threats (including
purpose of that organisation, covers how decisions are professional) as well as opportunities and reduces the
made and by whom, how those decision makers report possibility of innovation, disruptive evolution and
the process and how they are held accountable. regeneration.
Governance requires that all stakeholders are Horizon scanning is a recognised function within
considered and ultimately determines the very viability commercial operations, embedded in marketing and
of a college. strategy planning, and threat analysis is part of
The Covid pandemic tested colleges' decision-making financial and safety decision-making processes.
and makes for an interesting case study. Once it was Innovation is integral to commercial survival.
upon us, colleges acquitted themselves well in crisis.
Political turbulence like this year's ins and outs at the
But what about readiness?
department for education doesn't help with either
When it comes to risk management, the government's horizon scanning or threat analysis, but governance of
advice to the sector is clear about how a policy should risk management has been developing rapidly
be formulated, and adds that "maintaining an up-to- precisely because of the VUCAH (Volatile Uncertain
date business continuity plan is a funding Chaotic Ambiguous Hyperconnected) period we live in.
requirement".
Corporate social responsibility is merging with the
Yet some basic research on 30 college websites chosen health and safety function and is evolving into
at random, looking at their governance and policies enterprise risk management, which itself is becoming
pages, returned not a single business continuity plan. an integral aspect of strategy development.
I found one Covid emergency closure plan. If I cannot Frameworks and analytical tools to those ends are
find it, as a parent, student or employee, then that continuously becoming more sophisticated.
decision making is fundamentally neither transparent Management and leadership, culture and
nor accountable.
accountability are having to evolve to create the
The focus of governing boards was primarily designed human behaviours necessary to function in this
to be on the financial and educational requirements environment. 'Agile leadership' is maturing into an
of legislative and regulatory frameworks set by approach that accommodates devolved decision
government. They also address the wider safeguarding making while assuring stability and consistency of
and welfare needs of their staff and students. But the purpose. Executive education is reflecting this change.
dearth of a wider perspective is symptomatic of an A wider strategic perspective and the implementation
inward-looking and reactionary governance culture.
of more comprehensive risk management should be
The governance inertia identified in John Spindler's an integral function of colleges' governing boards. The
recent article in these pages can be partly attributed wider benefits will be felt in the quality of planning,
to the scope of the board's focus and make up. of curriculum design and delivery and, ultimately, by
Notwithstanding the members who come from staff, the students. T

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