Title: AACSB 2020 revised standards: A practical framework using strategic risk management
Author(s) : Kathleen Locklear
In July 2020, the AACSB issued revised accreditation standards which include the addition of Standard 1 (“Strategic Planning”). This standard sets forth an expectation that schools of business will engage in an ongoing process of strategic planning. There is a further expectation that schools of business will engage in a process of risk identification, risk analysis and risk mitigation. In addition, schools of business are expected to monitor progress toward their strategic goals. With respect to these expectations, the revised AACSB standards are non-prescriptive. As such, implementation may prove to be more challenging for schools of business that are not already accustomed to implementing risk management processes and tools. This work begins by outlining the risk management expectations contained in the revised (2020) AACSB standard. Strategic risk management (SRM) is proposed as an approach for addressing the revised expectations. Drawing from the existing body of work on SRM, a process framework (architecture) is provided.