How to prevent financial risks in universities

In today’s unstable and changing business environment, it is increasingly difficult to make good forecasts in order to make better strategic decisions. This is true even for businesses in the higher education industry. To remain active, they must manage their efforts strategically and avoid financial and operational risks. 

What are the financial risks?

They refer to the probability of not having the necessary resources to cover financial obligations or the uncertainty generated in the return on an investment. Operational risks are associated with unforeseen events that may occur, such as human error, technological failures or process failures.

What is the key to financial risk prevention in universities?

Riesgos financieros y operacionales en las universidadesIt is not always possible to accurately predict all the elements that will end up becoming risks. However, there is a tool that can help companies, and specifically universities, forecast events so that every process, decision or project they execute is based on data that supports them. 

This is the use of a financial planning module for forecasting, a tool that allows you to foresee future events and predict results. With this method, effective short- and long-term strategies can be developed, and more profitable decisions can be made to prevent financial and operational risks. 

This tool enables to: 

  • Identify the best strategies to implement as planned.
  • Manage demand levels, revenues and other factors.
  • Have accurate and relevant information for better planning.
  • Determine what changes to make at the university after analyzing which strategies are working and which are not.

How to implement a forecast module to prevent financial risks in universities

These forecasts should be made as frequently as the universities deem appropriate according to their objectives. In order to implement them, it is necessary to collect and make a thorough analysis of historical and current data on expenditures, revenues, and other important details. 

Prevenir riesgos financierosIt is then necessary to carry out a comparison between the points in order to identify patterns of behavior that will make it possible to foresee future events. With this comparison, a calendar of events is drawn up, the strategy to be used is defined and a study of the competition is carried out. 

Executing this forecasting work manually is neither efficient nor accurate. Therefore, it is best to use specialized tools such as the Prophix forecast module. With this solution, you can quickly and easily create accurate and flexible forecasts that enable you to make strategic business decisions based on reliable and accurate information. 

If you want to learn more about this tool, its benefits and how it can be implemented in universities to prevent financial and operational risks, Fusionworks can help you. Contact us!

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