Disruptive changes sparked by education technology and other forces are on the radar of education analysts. Even a quick internet search reveals a whole host of articles and organizations focused on educational innovation. But how do educators currently working in schools and districts think about innovation? How much of a priority is it for them?…

In hostile situations, a communicator's goal is to establish and maintain trust and credibility with the audience. School business officials need the special skills and techniques of what's known as "risk communication." Few people are natural risk communicators. Those who do it well honed their skills over many years spent in hostile…

Available data indicate that colleges and universities have experienced an unexpected rise in occupational fraud over the past two decades. In order to mitigate the risk of fraud, these institutions must be proactive and have strong internal controls and policies. The purpose of this study was to examine the current controls in place at Midwest…

Internal accounts offer schools a faster, more convenient way to handle the income and expenses that result from student fees, school clubs and organizations, field trips, fund-raising, and similar activities. But this convenience also incurs the added risk of fraud. Fortunately, there are proven ways to strengthen internal controls and reduce…

Because school business officials are pushed to make difficult decisions quickly when it comes to risk management, they should be aware of the issues associated with environmental safety. School business officials are integral members of the teams that handle crises--big and small--in the school district. A crisis may be as straightforward as the…

School business officials and other education leaders worry now more than ever about facing legal battles. Maybe today's parents are more likely to run to the lawyer's office. Or maybe they simply expect everything to be a certain way--their way. Regardless, the result is the same: today's school leaders are likely to find themselves having to…

Before renewing or purchasing additional school insurance, school business officials should identify one person as insurance coordinator, complete and update a risk management audit, develop coverage specifications, determine whether the purchases will be by bid or negotiation, and develop procedures for reviewing policies once they have been…

Hedge funds are the rock stars of today's financial world. These slightly regulated pools of equity, which are open only to rich players, are managed through secretive and sophisticated investment strategies. Although the risks are high, so are the potential benefits. Despite the risks, many colleges and universities have chosen to invest heavily…

School business officials should realize that achieving the Government Finance Officers Association's Certificate of Excellence in Financial Reporting will not always result in a high rating. Washington, D.C. has received this award for several years while flirting with bankruptcy. This article reviews the workings of financial markets for…

School officials should strive to obtain the best insurance coverage at the lowest possible cost. Large school systems can save money by establishing a self-insurance program rather than buying insurance. (Author/MLF)

This chapter of "Principles of School Business Management" presents an overview of risk management for school districts. The chapter first discusses four fundamental elements of risk management: (1) identifying and measuring risks; (2) reducing or eliminating risks; (3) transferring unassumable risks; and (4) assuming remaining risks.…

The capital markets approach is an alternative means of risk financing whereby a school system establishes and controls its own insurance company and makes systematic contributions to pay for expected and anticipated losses and their associated costs. (MLF)

As many court cases demonstrate, insuring against punitive damages is a complex issue facing school districts. Districts should secure competent legal counsel when purchasing liability insurance that specifically covers all potential punitive awards. (12 citations) (CJH)

Risk transfer is the process of finding an entity to assume the burden of liability. Opportunities for risk transfer agreements for school districts include outside contractors, use of facilities, rental of buildings and equipment, and school trips. Figures show two sample hold-harmless agreements and basic types and levels of coverage. (MLF)

An Educational Risk Management Plan (ERMP) should be incorporated throughout every school district. Discusses property and liability insurance classifications and features of a good ERMP. (12 references) (MLF)