Summer Could Be the Time to Tackle ERM

As your school year comes to an end, the NBOA programming calendar takes a brief respite, but not before we welcome more than 50 new and newer independent school business leaders to the NBOA Business Officer Institute (BOI). This year’s week-long gathering took place on the beautiful urban campus of Ashley Hall in downtown Charleston, South Carolina.

As in years past, attendees, business partners and NBOA staff welcomed the next generation of independent school business officer leaders and set them up for success with knowledge, idea sharing and an abundance of NBOA collegiality. BOI covers a range of critical topics that impact an independent school business leader’s portfolio, from independent school culture to financial aid and everything in between.

One of the standout presentations last week was delivered by BOI faculty member and NBOA Board Member Lisa Turchan, who serves as chief financial officer at the Buckley School in Sherman Oaks, California. Turchan spoke on enterprise risk management (ERM), an area that is frequently daunting to school leaders. This is so much the case that once business leaders get started, they often lose steam because the risks seem so abundant and the mitigations appear expensive or ineffective given the magnitude of the school’s exposure.

Her clear and remarkably simple message is that risk management is vital to an independent school’s financial and reputational health. Moreover, it’s our moral obligation to keep our students, faculty, families and visitors safe when they engage with our learning communities. I wholeheartedly agree. In today’s complex educational environment, risk management is no longer a reactive function; it’s a strategic necessity. As stewards of your school’s mission, reputation and financial health, business leaders must lead the charge in identifying and mitigating risk.

How not to get overwhelmed? Turchan advises tackling these conversations in sections, inviting only those with the best insights to the table for a particular risk area.

But how not to get overwhelmed? Turchan advises tackling these conversations in sections, inviting only those with the best insights to the table for a particular risk area. For example, don’t ask your facilities team to spend time identifying risks and mitigations in human resources, have them focus on physical plant. Build the plan section by section and then review the entire plan at the conclusion of the process. Also, be sure to update it annually.

Drawing on insights from United Educators and best practices across the independent school sector, Turchan shared these top eight risks to focus on. While these are based on a survey from 2024, many of the same areas will likely need to be in our sights as we diligently work over the course of the summer to prepare for the 2025-2026 school year. 

1. Enrollment Volatility

Demographic shifts and increased competition require a data-driven approach. Possible action items: 

• Reassess tuition and financial aid strategies.
• Explore new programs and geographic outreach.
• Consider shifts in international student recruitment and relocation partnerships with organizations that assist families who are relocating to a new area. 

2. Data Security

Cybersecurity is a growing threat with high stakes. Possible action items: 

• Conduct third-party security audits.
• Implement dual authentication and staff training.
• Develop and assess ransomware response plans.

3. Operational Pressures

Rising costs demand smarter financial planning. Possible action-items:

• Use zero-based budgeting.
• Monitor actuals vs. budget with dashboards.
• Explore auxiliary revenue streams.

4. Recruitment and Hiring

Attracting and retaining talent is more competitive than ever. Possible action-items:

• Benchmark compensation and benefits.
• Offer flexible perks like hybrid work, mental health support and childcare.

5. Safety and Security

Campus safety is a top concern for families and staff, from playgrounds to parking lots. Possible action-items:

• Conduct safety audits and regular drills.
• Invest in communication systems and health services.
• Conduct regular inspections.
• Ensure ADA compliance and hazard mitigation.

6. Facilities and Deferred Maintenance

Aging infrastructure can pose safety and financial risks. Possible action-items:

• Prioritize long-term capital planning.
• Conduct regular facility assessments.

7. Student Mental Health

Support for student well-being is essential. Possible action-items:

• Expand counseling services.
• Train staff in mental health awareness.

8. Sexual Misconduct

This remains a high-liability area requiring vigilance. Possible action-items:

• Maintain clear policies and reporting procedures.
• Conduct thorough background checks.

Risk management is not about eliminating risk — it’s about understanding it, preparing for it and responding effectively. Use your resources, from NBOA, NAIS and your insurance partners, and make risk management a living, breathing part of your school’s culture.

Stay safe. Stay strategic. And stay mission driven as you plan for next year.

Follow NBOA President and CEO Jeff Shields on LinkedIn.