| Summary: | Risk management is recognized as a prominent aspect of the good corporate governance of a successful institution. The need for effective risk management framework is widely recognized by academic and industry to manage all type of risks encountered by an organization. However, managing risk practices in the not for profit arena, including public higher education institutions, appear to be significantly less developed as compared to that of business world. In Malaysia higher education scenario, some public universities are awarded autonomous status, and therefore, a framework for effective management of risks is needed. Review of literature related to risk management indicated that Enterprise Risk Management (ERM) framework is a best practice and can be applied in higher education setting. However, the risk management framework of ERM need to be costumed to suit the unique mission, risk context and risk profile of higher education. Based on the review of literature and ERM framework of COSO and ISO 31000:2010, risk governance, risk policy, risk context, risk treatment, communication and consultation, risk identification, risk analysis, risk evaluation, and monitoring and review of risk management process, tools and technology, and continuous improvement of the risk management practices, is proposed for the public universities. Organizations that have implemented systematic risk management practices are enjoying high level of organizational performance. However, specific measure of performance is needed to link the risk management practices and the impact on the organizational performance. A review on organizational performance measures related to risk suggesting that the financial and non-financial performance would serve as construct of organizational performance for these universities. Hence, this study proposes a framework for risk management practices and organizational performance for managing risk in the higher education setting, particularly for Malaysia’s public universities with autonomous status.
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