Risk Management Unit
Overview
Risks of Prince Sultan University (PSU) can be defined as “the threat or opportunity that an action or event will affect PSU’s ability to achieve its strategic goals”. Risk management is important in key operational areas of PSU to ensure that threats and opportunities affecting the successful delivery of operating plans are appropriately addressed and effectively managed. ‘Threat’ in terms of risks can be termed as an uncertain event (a negative effect on the likelihood of achieving PSU’s strategic goals); and on the other hand, ‘opportunity’ is an uncertain event (a favorable effect on the likelihood of achieving PSU’s strategic goals).
PSU’s view of acceptable risk is the balance between risk aversion and opportunity. In doing so, PSU follows Corporate Governance Regulations (CG) Framework 2010 issued by the Capital Market Authority, Saudi Arabia (Resolution No. 8-16-2017); amended 20/5/2019). The CG framework in Saudi Arabia entails that forecasting risks and disclosure with transparency is important step for ensuring commitment towards effective risk management systems and internal control (Sarbanes-Oxley Act 2002 (SOX, Section 404 Guideline, page 3).
Three types of risks will be identified:
- Academic Risk
- Financial Risk
- Others Risk
Purpose
The aims of Risk Management Policy of PSU are threefold:
- To outline PSU’s underlying commitment to risk management in achieving strategic goals and objectives;
- To ensure all significant risks are identified, evaluated and updated periodically;
- To assign accountability to all staff for risk management.