Financial and Operational Risks in Higher Education: An Econometric Analysis of University Resilience

Abstract

In this research, the resilience approaches in higher education institutions are evaluated by modeling their financial and operational risks. The researchers use two methods to study the university's financial reports: educational funding by the government and student satisfaction surveys, using panel data regression and logistic regression. Structural equation modeling (SEM) is used to understand the research investigation as to how financial stability leads to student performance outcomes. There are key financial risks arising from the fact that student tuition is predicated upon institutional funding and public money, as well as unstable public money and differing output from the endowment portfolio. The impact of security threats at campuses, faculty attrition, and safety-related issues negatively affect institution resilience, including University operational risks. Plans that reduce their financial risks and threats to operation should be developed within higher education based on the data available. The information provided by econometric models is of great importance when it comes to the management of sustainable financial operations and operations efficiency. Results demonstrates that by optimizing better data-driven crisis mitigation approaches and improving the university systems to respond effectively to such cyber disruptions, policymakers should strengthen revenue diversity.