Schools face various risks that can significantly impact their operations, financial stability, and reputation. To effectively mitigate these risks, it is crucial for both the school business officer (CFO) and the technology leader to assume shared responsibility in implementing robust risk management practices. In this article, we will explore the importance of collaborative risk management and how the CFO and technology leader can work together to ensure a secure and resilient school environment.
Understanding the Roles
The CFO and technology leader bring unique perspectives and expertise to the table. The CFO oversees financial management, compliance, and operational risk, while the technology leader is responsible for maintaining the school's technological infrastructure, data security, and privacy. Recognizing the interdependence of these roles is the first step towards effective risk management.
Identifying Risks
Collaboration between the CFO and technology leader enables a comprehensive identification of risks. The CFO brings financial and operational risks to the forefront, such as budget constraints, vendor management, and regulatory compliance. The technology leader contributes insights into cybersecurity threats, data breaches, infrastructure vulnerabilities, and emerging technology risks.
Be proactive in starting the conversation! The CFO is busy. By partnering with them preemptively, the tech leader can help mitigate risks. For example, while renewing (or applying) for cybersecurity insurance, if the CFO checks something on the application that the school doesn’t actually do, it could void insurance coverage. Partnership and communication are key.
Assessing and Prioritizing Risks
Together, the CFO and technology leader can assess and prioritize identified risks based on their potential impact and likelihood. They can develop a risk register that encompasses financial, operational, and technological risks, considering factors like student data privacy, network security, disaster recovery, and business continuity. Cybersecurity is an area of institutional operations that directly impact both the technology department and the business office. Check out the NBOA and ATLIS’ Cyber Insurance Guidelines for help getting started.
Implementing Risk Mitigation Strategies
The CFO and technology leader collaborate to develop and implement risk mitigation strategies. For instance, they can establish policies and procedures to ensure compliance with data protection regulations, conduct regular security audits, and establish backup and recovery plans. By aligning financial resources with technology needs, they can address vulnerabilities and enhance the overall risk posture of the school.
Monitoring and Reporting
Continuous monitoring and reporting of risks are essential for effective risk management. The CFO and technology leader can establish mechanisms to track risk indicators, monitor emerging threats, and evaluate the effectiveness of mitigation measures. Regular reporting and communication between the two parties ensure transparency and facilitate informed decision-making.
Training and Education
Collaboration between the CFO and technology leader extends to fostering a risk-aware culture within the school community. They can jointly support training programs, awareness campaigns, and professional development opportunities to educate staff, students, and parents about risks, responsible technology use, and data privacy.
Incident Response and Recovery
In the unfortunate event of a risk event, such as a cyberattack or financial irregularity, a coordinated response is crucial. The CFO and technology leader must establish incident response plans, including communication protocols, data breach response procedures, and financial fraud prevention measures. Regularly testing these plans through simulations ensures preparedness and prompt recovery.
In today's digital era, risk management is a shared responsibility that requires the active collaboration of the CFO and technology leader at schools. By combining their expertise, they can identify, assess, mitigate, and monitor risks effectively, safeguarding the school's financial well-being, operational continuity, and data security. Embracing this collaborative approach enhances the overall risk management framework, which fosters a safe and secure environment for independent schools.