The investment strategy of Orange County (California), which led to insolvency of its investment pool, is analyzed and lessons applicable to institutions of higher education are examined. Focus is on two elements: leveraged investment strategy that depended on stable or declining interest rates, and a liquidity crisis. It is concluded that…

Describes the program implemented at the University of Texas system that provides real-time compliance status related to all applicable laws, rules, regulations, policies, and procedures unique to higher education so that compliance risk management becomes an integral part of the everyday activities of all employees. (SLD)

Presents a model for evaluating liability insurance limits and selecting the correct limit for an individual institution. Argues that many colleges and universities may be making overly conservative decisions that lead to the purchase of too much liability insurance. Also discusses the financial consequences of an uninsured large liability loss.…

A discussion of 1996 federal legislation giving the Internal Revenue Service authority to impose, retroactively and for the first time, significant penalty taxes on "insiders" who benefit improperly from transactions with certain nonprofit organizations looks at the implications for colleges and universities. Background, objectives,…

Discusses how higher education institutions can market their risk financing program to insurance brokers and insurance companies to obtain superior, cost effective coverage in the current buyer's market. Explains the development of a marketing package, the negotiating process, and the selection of brokers and insurance companies. (MDM)

As college and university financial officers pursue business partnerships to boost institutional revenue, they must consider how these agreements affect the tax exempt status of their financing arrangement, continually monitoring use of facilities financed with tax-exempt debt. Issues to be addressed include the provisions of service contracts,…

Successful college and university investments hinge on an asset allocation strategy capable of meeting the institution's needs for income and growth in principal at the lowest possible risk. Periodic adjustments must be made when there is a shift in the institution's risk tolerance, modification in need for income distribution, and changes in…

A survey of 148 college and university risk management officers and college executives investigated attitudes concerning the added value that risk management brings to the institution; insurance functions critical to the institution; critical loss control functions; communication of risk management issues; and professional development of these…