Educational Institution Risk Management Model


The article deals with the issues of risk management as circumstances that ensure the effective operation of an educational institution. There are certain risks in the activities of any company, regardless of the field in which it operates, at what stage of the life cycle it is located and what organizational and legal form it has. Therefore, constant monitoring, analysis, assessment, control, correction and search for optimal solutions in the field of risk management are necessary. The relevance of risk management in the activities of an educational institution is growing every day. This is confirmed by the increase in scientific research in this area, as well as the need to create risk management systems. The activity of an educational institution is associated with a variety of risks; therefore, it is necessary to be able to anticipate, assess and reduce their negative effects. The purpose of the study is to develop a risk management model that would contain a theoretical justification of the prerequisites for its improvement and take into account the specifics of the field of education, as well as methodological approaches to risk management. The research uses the following methods of scientific knowledge: observation, comparison, analogy, synthesis and analysis, induction and deduction, factor analysis. The proposed risk management model of an educational institution helps to reduce the impact of risks on the institution's activities and minimize negative consequences.

Keywords: Risk, risk management, risks of an educational institution


The conditions for the functioning of the educational services market today are undergoing significant changes. In this regard, the problems of risk management in the field of education become extremely important. Increasing the independence and independence of higher education institutions leads to the progression of managerial and financial risks that are associated with incorrect managerial decisions. Therefore, the issue of research and search for an effective risk management mechanism in an educational institution becomes relevant, especially considering that at present the theoretical approach to this issue has not been sufficiently developed.

Problem Statement

In modern dynamic conditions for a leader, it becomes vitally important to search for forms and methods of effective management of an educational institution. The education risk management model has some specific features. The market prescribes to increase the competence of teachers and fight for each potential applicant. It is necessary to thoroughly comply with the requirements of state educational standards, monitor the labor market and educational services, identify and open sets for new, demanded training programs, improve the quality of educational services, choose and combine the most effective forms of education, update the educational and laboratory facilities.

Research Questions

In this situation, the top management of the institution has to solve the following question: how to find the right balance of interdependent components that would occupy such an important place in the functioning of any entity trying to stay afloat? The relevance of the study is due to the need to address this issue.

This study proposes the development of a comprehensive risk management mechanism for an educational institution, by introducing which the university will be able to increase the efficiency of its activities and at the same time reduce the possible damage from it.

Purpose of the Study

The purpose of the study is to develop a risk management model for an educational institution, which contains a theoretical substantiation of the prerequisites for its improvement, taking into account the specifics of activities in the field of education, methodological approaches to risk management.

Research Methods

The research uses the following methods of scientific knowledge: observation, comparison, analogy, synthesis and analysis, induction and deduction, factor analysis. The theoretical and methodological basis of the study is represented by the works of domestic and foreign scientists on risk management.

Theoretical and methodological foundations of risk management

When making management decisions, educational institutions often encounter circumstances that suggest several possible alternatives. Very often, the level of profitability and the probability of losses are interdependent, that is, the most profitable and interesting solutions contain a high level of risk. Therefore, it is important for the educational institution to form a policy in the field of risk management. It should be aimed at pinpointing the impact on each type of risk, assessing the feasibility of the risk, the probability and the number of losses (Kostishko et al., 2020).

The economic significance of the definition of “risk” is analyzed from various points of view. One of the authoritative researchers of the problem of risk management, Kaplan and Mikes (2012) believes: “The first step in developing an effective risk management system is to identify qualitative differences between the types of risk, each of which requires a specific approach” (p. 60).

The existing approaches to the interpretation of the definition of “risk” can be classified into three blocks.

1) risk is a property that is characteristic of any type of expedient activity. At the same time, risks show the probability of events occurring in time that lead to a disbalance of socio-economic systems.

2) risk is the result of the accumulation of regressive potential. The formation of this theory is associated with the destructive nature of risks.

3) risk is uncertainty, without which it is impossible to carry out business activities. The initial goals and objectives may not coincide with the outcome of the events.

The scientific and educational literature reflects several key aspects of risk consideration: economic, destructive, creative, activity and situational aspects. Therefore, the interpretation of the concept of “risk” can be presented in the form of several categories:

  • risk is an economic category;
  • risk is a danger, the possibility of a negative development of events and a deviation from the intended goals and the drawn-up action plan;
  • the risk is identified with the possibility of a successful outcome of the plan, with the receipt of economic benefits from the current circumstances;
  • risk is considered as a set of actions that are focused on the implementation of the goal, taking into account the factor of instability of the external and internal environment;
  • Risk "acts as a situational characteristic of activity in conditions of uncertainty arising from objective circumstances" and individual-group preferences.

In accordance with the State Standard of the Russian Federation GOST R 51897-2002 “Risk management. Terms and definitions” risk is a combination of the probability of an event and its consequences-the results of events. The consequences are logically arranged from positive to negative.

There are no ready-made recommendations in the risk management process. However, it is possible to achieve success in a given situation, knowing the methods, techniques and ways to solve problems in risk management (Gelai et al., 2016).

The most important element in risk management is their assessment. In this regard, there is a need to create an effective methodology for assessing and analyzing risks. Modern science has developed many different research methods used in determining the level of risk. All methods can be divided into two main groups: quantitative and qualitative. Qualitative analysis is used to determine the factors, areas and types of risks, and quantitative analysis is used to assess individual risks and the risks of participating in the project as a whole (Vorontsovskiy, 2019).

The overall risk assessment strategy can be presented in the form of a risk analysis algorithm, which includes the steps shown in Figure 1.

A qualitative analysis determines the risk factors, the sequence of activities that pose a risk, and is responsible for identifying all possible risks. Identifying the amount of damage from various risk subspecies is a quantitative analysis that identifies the causes, sources of risk and the magnitude of the likely consequences.

Identification of risks of an educational institution

Within the framework of this study, the risk of an educational institution will be interpreted as a threat, a possible unsatisfactory outcome of an event, a deviation from the set goal due to the adoption of a certain managerial decision or force majeure circumstances.

Figure 1: Risk analysis algorithm
Risk analysis algorithm
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The authors, who study the problems of risk management in the educational environment, distinguish the following ᡃ internal and external sources of risks: decrease in the quality of the educational process; changes in the legislation of the Russian Federation in the field of education; reduction of the budgetary component of financing; competition in the educational services market; low level of development of the material and technical base; insufficient level of qualifications of the teaching staff; decrease in the effectiveness of communication between teachers and students; changes in supply and demand for certain areas of training in the труда of the labor market; ineffective management decisions; violation of ᡃ economic, fire safety (Lavrischeva, 2017).

Let us present a typology of key risks depending on the types of ᡃ activities of an educational institution:

  • Risks in educational activities: non-compliance with the requirements of state educational standards, a decrease in the quality of applicants’ admission and in the quality of education.
  • Risks in research activities: low publication activity of teachers, low volumes of research.
  • Risks in financial activities: decreased financial stability, low values of strategic indicators.
  • Risks in HR-management: staff shortage, decrease in human resources potential.
  • Risks in managing material and technical base: reduced use efficiency, a high depreciation percentage, lack of funds for updating the material and technical base of the institution.
  • Risks in security management: non-compliance with the requirements of civil defense and emergency situations, fire safety, failure to ensure information security.
  • Risks in public relations management: risks of ineffective advertising, risks of non-fulfillment of the career guidance plan, risks of not concluding agreements and contracts with key and new partners.

On the basis of the typology of risks of educational institutions presented in the work, the internal and external risks that affect the quality of the training of graduates are highlighted.

The educational services market is characterized by specific types of risks. At the same time, the parameter “quality of education” is of particular importance. Quality is the most important component, and therefore, first of all, it is necessary to determine the magnitude of the risks associated with this component of education. In modern economic conditions, the heads of an educational institution independently decide on the use of material, technical, labor, financial and other resources, bearing responsibility for increasing the efficiency of their use (Ilyina et al., 2017).

The market demand for educational services is constantly changing in accordance with modern trends in the labor market; therefore, staffing a university with a contingent is often in conditions of uncertainty and is subject to significant risk.

The direction of risk management in an educational institution is very relevant, since the competence of the ability to manage risk is among the least developed among Russian leaders. The main changes to the standard 9001: 2015 compared to the previous version are in a new direction - risk-based thinking (On the application of a risk-based approach when organizing individual types of state control (supervision) and amendments to some acts of the Government of the Russian Federation, 2017).

In order to choose a specific method or a set of methods for dealing with risks, it is necessary to take into account various factors, such as the availability of qualified personnel, the nature and degree of data uncertainty, the admissibility of using the method in specific conditions.


In the modern world, educational services are under rapid development. Their subjects are constantly improving and changing, adapting to new types of thinking, to significant values, to the opinion and development trends of society as a whole. New directions in educational activities appear, while others, on the contrary, are becoming a thing of the past or becoming secondary. The forms of providing and assimilating information, one way or another, are also being transformed. The traditional methods of education are being replaced by distance technologies, which are becoming convenient, familiar and popular in today's dynamic environment.

Risk assessment of an educational institution

The key risk in activities of educational institutions is the quality of educational services. It is important to understand that the process of determining the quality of educational services is very complex and multifaceted, it concerns both internal and external goals. Requirements for the quality of education are growing every year. People want to receive quality education in the best conditions at a reasonable price. Economic conditions also influence changes. This makes it possible not only to provide educational services, but also to earn money in this area, maintaining their competitiveness. Therefore, an educational institution needs to constantly develop, be the most adaptable and flexible for its target audience. An analysis of the risks of an educational institution was carried out in order to identify them and reduce the consequences. Figure 2 presents the conclusions of this analysis. Such an analysis makes it possible to identify key problem areas in the educational process, to determine the responsible structural units for the purpose of further detailed consideration and preparation of specific methods to minimize risks.

Development of a risk management model for an educational institution

When developing risk management measures, it is important to take into account that there are specific types for the education sector. Consequently, the methods of risk management in educational institutions should be adjusted and adjusted to the tasks that are set for them. The purpose of the institution in the field of risk management is to ensure that strategic goals are achieved by early identification of risks and ensuring maximum effectiveness of anti-risk measures (Pervushina, 2016a). Ensuring the guaranteed level of training of graduates is achieved by the effective and continuous implementation of the functions of educational activities while reducing the likelihood of a negative impact of risks on the results of education. The risk-based education quality management system, thus, is aimed at monitoring the processes of education and upbringing (Bulygin, 2018). In order to form horizontal connections in the institution, a process approach was developed. It enables employees and departments who are involved in one process to independently coordinate work within it and solve emerging problems without the participation of higher management. The main advantage of the approach is efficiency in resolving issues and impact on the result. For an institution has never faced risk identification before, it is important to focus on risk management when designing processes. Risk management is characterized by a set of methods, techniques and measures aimed at creating a flexible system for the optimal use of available opportunities in order to predict the onset of risks (Pervushina, 2016b). Management and implementers may show a lack of understanding of the process approach in principle. The study proposes an easy-to-understand plan for employees to implement risk-based thinking in an educational institution.

Figure 2: Scheme of identified risks of an educational institution
Scheme of identified risks of an educational institution
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In order to eliminate losses, it is necessary to change the perception of a risk-based approach. In the GOST R ISO 9001-2015 standard, risks play a more significant role. After researching and analyzing an educational institution, a risk management model was developed (Figure 3).

Figure 3: Educational institution risk management model
Educational institution risk management model
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Let's consider the advantages of the proposed mechanism. The educational institution will be able to find the sources of existing and possible risks of the educational institution and analyze their factors; get the probability of the occurrence of any risk; assess the potential damage if the situation develops in a negative way. The model allows monitoring risks at the time of the emergence of a negative trend, as well as to develop and apply measures that can minimize the risk.

Such a model involves employees of all levels of the organizational structure in the risk management process. As a result, the implementation of action plans and control procedures, which are developed as part of the functioning of the system, optimizes business processes and headcount. This leads to savings in labor and material resources.


Risk should be interpreted in many ways, as an objective category of economic existence and development, which subjectively assumes certain properties and features, becoming positive or negative phenomena. The main properties of risk make it possible to more accurately understand their essence and nature. These become: the random nature of events, the existence of alternative solutions and the presence of a choice, the likelihood of obtaining a positive result or loss, the possibility of bias from the intended goal, inconsistency and uncertainty. The risk management process of an educational institution is extremely important for increasing the efficiency of the economic component of the educational process, improving the quality of management decisions. This process should be built on the principles of validity, manageability, expediency and continuity. Risk management from the point of view of a scientific approach requires their classification. The authors proposed a classification typology of risks. It can be carried out on the following grounds: for educational activities, for research activities, for financial activities, in the field of personnel management, in the field of property management, in ensuring security, risks in the field of public relations management. The use of the developed classification contributes to a better analysis of risks, the implementation of their grouping in order to create mechanisms for managing them, increasing the level of financial stability of universities by targeting preventive measures and improving the quality of management decisions taken by the university leadership.

The proposed risk management model of an educational institution helps to reduce the impact of risks on the institution's activities and minimize the negative consequences associated with them.


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25 September 2021

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Economics, social trends, sustainability, modern society, behavioural sciences, education

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Galiutinova, E. I., & Pervushina, T. L. (2021). Educational Institution Risk Management Model. In I. V. Kovalev, A. A. Voroshilova, & A. S. Budagov (Eds.), Economic and Social Trends for Sustainability of Modern Society (ICEST-II 2021), vol 116. European Proceedings of Social and Behavioural Sciences (pp. 2061-2069). European Publisher.