Enterprise Risk Management in the Great City Schools, Spring 2016

Public schools have a mandate to educate children in a way that is safe, effective, and cost efficient. The risks involved in achieving that mandate have become increasingly complex, and the need to manage those risks has never been greater. The emergence of widespread, interconnected risks, such as cyber risks and data management, infrastructure risks, privacy, the threat of terrorism, and workplace violence makes it clear that the nation's public schools need a new approach to managing risk. Many of the most pressing risks and the uncertainties associated with achieving a school district's key mission go beyond insurable risks or activities under the direct control of a school district; they now include a broader range of uncertainties. A broader approach to risk management is needed. The challenge for members of the Council of the Great City Schools is to identify best practices in managing risk, referred to in this paper as Enterprise Risk Management or ERM. The purpose of this white paper is to present key concepts of ERM and enhance the understanding of how to apply ERM to a K-12 public school setting. A list of best practices is appended.