ASSET AND RISK MANAGEMENT
This chapter of the report reviews the asset and risk management functions of Austin Community College (ACC) in five areas:
- A. Cash and Investment Management
- B. Employee Benefits
- C. Insurance Programs
- D. Fixed Assets
- E. Bond Issuance and Indebtedness
Community colleges face a variety of risks. A community college's most valuable assets must be protected if the college is to adequately fulfill its mission, goals and objectives. Cash, employees, fixed assets and borrowing capacity are among a college's most important assets. The goal of asset and risk management is to protect these assets from financial losses resulting from unforeseen events.
Risk management employs various strategies to minimize risks. These strategies may include avoiding risks through proper planning and training, transferring risks through insurance and retaining risks through self-insurance. Effective asset and risk management involves employing the most beneficial strategy or combination of strategies to protect assets.
Asset and risk management also involves investing idle cash to achieve optimum rates of return after board policy, principal preservation and liquidity considerations are met; providing affordable health and workers' compensation insurance to employees; safeguarding property from loss through damage, theft and unexpected events; and managing debt through timely principal and interest payments while seizing opportunities to reduce interest costs.