Schools have faced many risk management challenges over the last few years, not least of which has been navigating the ongoing effects of the COVID-19 pandemic.

Apart from the risks associated with the ongoing effects of the COVID-19 pandemic, risk management in schools has become more difficult and challenging as a result of broader issues affecting every organisation, not just schools, in some way. Some of these broader issues are:

• an ever-changing governance, risk and compliance landscape
• rapid, unpredictable and unprecedented change
• periods of turbulence, uncertainty, novelty and ambiguity (TUNA).

How Has the Governance Risk and Compliance Landscape Changed?

A recent report of a survey of risk and compliance professionals from a range of industries published by the Open Compliance and Ethics Group (OCEG) highlighted just how much the pandemic has changed the governance, risk and compliance (GRC) landscape.

The report’s introduction discussed the perceptions of rapid change in the GRC landscape and the unpreparedness for some organisations to deal with this change, warning that challenges will mount for those unable to adapt to these disruptions:

“Perception of an increasingly volatile world and an expectation of no return to a previous normal, along with an active regulatory landscape, has placed substantial stress on already inundated GRC professionals and their programs… Companies that have not adjusted their GRC programs to the disruptions of the last few years and are not prepared for or adapting to this new reality will see challenges mounting.”

The Importance of Resilience During Change

The need to identify and manage risk and to become more resilient in the face of increasing challenges is something that schools should address and not expect that these events are happening ‘out there’ and will not impact school operations.

McKinsey and Co, writing on resilience in May 2021 stated that:

“The world is undergoing increasingly rapid, unpredictable, and unprecedented change…Catastrophic events will grow more frequent but less predictable. They will unfold faster but in more varied ways. The digital and technology revolution, climate change, and geopolitical uncertainty will all play major roles”.

McKinsey referred to several examples of data that highlight the uncertain and volatile times we live in, including that:

• the International Monetary Fund ‘World Uncertainty Index’ has increased substantially since 1990
• incidents of companies reporting cyber incidents have risen 24 per cent since 2013
• the frequency of natural disasters is rising.

Adaption During “TUNA” Conditions

Many schools are considering, or have already reframed, their strategic and operational objectives, introduced new systems and processes or new opportunities and new programs in response to the current period of turbulence, uncertainty, novelty and ambiguity - developing greater organisational resilience and managing risks more effectively.

Thought leaders in this area have written:

“During periods of turbulence, unpredictable uncertainty, novelty, and ambiguity (what we like to refer to as TUNA conditions), organizations frequently experience serious challenges that threaten existing value chains, communities, and even whole fields of endeavour. Such conditions can be unsettling and destabilizing on many different levels. But they also present opportunities for organizations to reframe their strategies and innovate.”

What Risk Management Challenges Have Schools Faced?

As 2022 draws to an end, there is no doubt that many schools will have begun reflecting on the risk management challenges that they have faced over the past 12 months.

The year started with challenges arising from mandatory vaccinations for staff, school shutdowns, and staff shortages caused by COVID-19 isolation requirements. However, more recently schools are dealing with a range of issues including cybersecurity, teacher burnout and retention, governance and leadership challenges, and mental health concerns of students. Some schools are also dealing with historical child sexual abuse, issues around religious discrimination and freedom, and school closures.

Additionally, with many states declaring an end to COVID emergency measures, it is worth reflecting on the gaps in systems and processes for managing risks that were highlighted by the pandemic.

Schools will also be asking: “What next?”. What will be the new risks that may surface in the next 12 months or what are the existing risks that will become more urgent and may threaten operational and strategic objectives?

Predicting the Risk Future – We Want to Hear from You!

Peter Drucker said that predicting the future is like “trying to drive down a country road at night with no lights on while looking through the back window”. Nevertheless, it is a worthwhile exercise to think about the risks that schools are facing and those they think they will have to manage in the future and for that information to be shared.

Complete the Survey

CompliSpace has developed a short survey for schools so that they can contribute what they see as the most important risks that schools face now and those that they consider will be most important in 2023 and beyond. The results will be published on our Top Risks for Schools page along with relevant resources. This short, anonymous survey can be accessed here.