INCREASED AGILITY TO NATIONAL, REGIONAL AND GLOBAL OPPORTUNITIES
Efforts continue to be made to ensure that all major risks are properly identified and to foster more complete risk management arrangements. To this end, initiatives regarding the establishment of adequate University- wide Enterprise Risk Management (ERM) processes are being considered for implementation. The components of this process include (a) identification and prioritisation of risks; (b) risk mitigation strategies; (c) continuous risk reporting and monitoring. The University of the West Indies, like similar institutions of higher learning, is exposed to a wide cross section of risks related to: • Reputation • Student experience • Staffing issues • Commercial issues • Organisational issues • Information and IT (Cyber risks) • Financial issues • Property and facilities Insurance The University utilises various forms of insurance, both at the local campus level and regionally, as a key risk management tool in mitigating exposure related to assets owned by the University and other related operational risk exposures. The University continues to pursue options aimed at generating premium saving solutions for its regional insurance programme. Annual reviews are conducted to ensure there is balance between cost and risk profile. Discussion on the captive insurance option continues and preliminary analysis has indicated that this could be a viable option.
UWI continued to maintain invaluable relationships with contributing governments and increased their awareness regarding their outstanding obligations to the institution. In an effort to recover outstanding debt, the University continued to submit payment plans accompanied by monthly or quarterly invoices to the contributing governments. This has in some instances resulted in more frequent payments.
Research Grants Increasing research output remains a priority for the University. The thrust towards increasing research output continued during the year. The University continued to make significant strides towards its goal of growing and sustaining a culture of research and innovation aligned to the specific developmental needs of the region, despite the constraints faced by its academics. The value of research grants received during the year under review was BDS$12.5 million (2018: BDS$32.8 million). Efforts are being made to obtain new grants of high value to conduct research, particularly related to development of the region. Recognising the need to increase funding of research, several steps have been taken by the Office of Graduate Studies and Research. These include: diversification of the sectors from which grants are targeted, and responding to an increased number of calls for grant applications. Risk Management The University’s risk management goals, are to have the highest possible concern for the safety of its students, faculty, staff and public in combination with maximum protection to prevent financial loss of institutional property.
BROADENING THE FUNDING BASE
University Trust Fund The creation of a Trust Fund to provide additional income from performing assets is being pursued. The increasing gap between approved budgeted contributions and actual commitments from the contributing governments, puts tremendous pressure on the University’s cash-flow and also severely impacts its financial stability. Contributing governments will pledge physical assets and other revenue performing assets to the Trust and in some cases these assets will be exchanged for contributions owed to the University. The Trust Fund is being considered as a long term solution to provide an additional source of revenue to reduce the gap in the budget. The estimated annual funding gap for the University on a consolidated basis is in the order of US$70 million which is approximately 20% of the annual UGC Budget. Other funding mechanisms are also being explored.
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