Risk management is a process of proactively identifying issues and assessing their potential impact on the University. Taking a proactive approach allows the University to anticipate risk and make informed business decisions. Depending on the circumstances, the University may choose to either avoid risk or assume it. Harvard University is concerned with five risk areas.
- Compliance - Compliance risks involves violation of either federal or state laws and regulations. For example, not adhering to the Fair Labor Standards Act requirements.
- Financial - Financial risks involve loss of assets. For example, personal use of the PCard.
- Operational - Operational risks involve interruption or cessation of business activities. For example, loss of utilities.
- Life Safety - Life safety risks involves personal injury or death. For example, a sports injury.
- Reputational - Reputational risks involve tarnishing the University's name. For example, negative press releases.